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iPhone Fever Hits Europe

A German newspaper report that T-Mobile International AG will be the exclusive distributor of the iPhone in Germany helped send the share price of parent Deutsche Telekom AG (NYSE: DT) up 1.5 percent Wednesday morning.

The report comes as speculation reaches a fever pitch over who will win the iPhone distribution deals in Europe following the mass demand for the new device in the U.S. (See The iPhone Arrives.)

German daily newspaper Rheinische Post reports T-Mobile will sell the famous phone for €450 (US$613) starting November 1. In early trading this morning on the Frankfurt stock exchange, Deutsche Telekom's shares jumped as much as 1.5 percent -- even though the carrier was not commenting on the speculation.

Credit Suisse also raised its recommendation on European telcos today from "neutral" to "outperform," which may have contributed to the price boost in Deutsche Telekom's shares.

European operators are eager to capture the early distribution rights and the brand association with Apple Inc. (Nasdaq: AAPL)'s iPhone following last week's successful launch by AT&T Inc. (NYSE: T) in the U.S.

Just about every big mobile operator in Europe has been mentioned in rumors about iPhone distribution negotiations, including Vodafone Group plc (NYSE: VOD), Orange (NYSE: FTE)'s Orange, Telefónica Móviles SA , T-Mobile, and U.K. mobile phone retailer Carphone Warehouse Group plc (London: CPW).

One report suggests Apple is waiting until iPhone sales reach 1 million in the U.S. until it announces its European partners.

The analyst team at Dresdner Kleinwort says Apple should take into account network coverage and capacity when picking its European partners, not just the commercial terms offered, given early reports of user frustration with network transmission speeds in the U.S.

"With the AT&T experience in fresh memory, Apple may undertake more thorough 'due diligence' when it seeks to expand its iPhone operations to overseas markets, particularly in Western Europe where there are numerous candidates," states the Dresdner team in a research note.

— Michelle Donegan, European Editor, Unstrung

AllKindsOfThings 12/5/2012 | 3:05:41 PM
re: iPhone Fever Hits Europe Dresdener Kleinwort has a point there - but not a big one. Considering that leading operator in Europee have begun rolling out 3.6 MBit/sec HSDPA in some cities and are firm in having that once again bumped up to 7.2 MBit/sec before new years eve the scale for what can be considered coverage for meaningful internet usage actually has shifted.

And one thing is clear: the iPhone as will NOT play any leading role to define Internet Experience - the minimal functionality that Apple chose to bulid into the iPhone by choosing only yesterdays Radio Network standards is sad.

The need to have to throw the phone OUT once the battery goes bad. Togehter with its rediculous poor Radio performance should drive people in need for smooth productivity AWAY IN DRONES from the thing. They should wait those few months when the first series of gesture managed SonyEricsson, Nokia or Samsung phones htis the market.

Those device WILL beyond great design ALSO employ REAL High performance technology that deserved the name and will be cutting an EDGE out of this Apple things. Apple is really SHAMEFULLY overcharging (which again is not new) and VASTLY underdelivering (which is the REALLY SAD part).

Ah well, just my two cents again.

Allkindsofthings
lrmobile_rusty 12/5/2012 | 3:05:40 PM
re: iPhone Fever Hits Europe AKOT,

Clearly you don't own an iPhone. If you did, you'd realize that web surfing is pretty decent on EDGE. I had a Treo 755p that supported EV-DO (comparable to current HSDPA networks) and the Internet experience is far better on the iPhone.

Some pages take slightly longer to load than I'd like but the benefits in terms of battery life are huge. Even regular pages like Unstrung load in a reasonable amount of time.

There is a reason that companies like RIM have shied away from HSDPA so far. The battery drain is simply deplorable. Having faster Internet speeds is simply not worth dealing with a phone that can't last through a day of slightly heavy usage.

If anything I think Apple is undercharging for this phone. It is so much better than the best Blackberrys and Treos (I don't have personal experience on other phones) that it's hard to even try to compare. There is a reason they are selling so well and it ain't just the hype.
AllKindsOfThings 12/5/2012 | 3:05:32 PM
re: iPhone Fever Hits Europe Hi rusty,

owning an iPhone is not required to know the differention value of network speed for delivering a convincing Web Experience. I agree that having a borwser that can show "Street HTML" if that is thrown at DOES help, even when if doesns fix the problem that tha site designed towards use at the desktop is ompletely disconnected from the desires and needs of a user on the go - so even when looking at such a site is a compromise that is better than not being able to display anything, an expereicne targeted towards bein aware of the user being on the go has an opportunity to deliver socthing that is greatly better for being used on the go (as a default) than the desktops site.

I am not saying that lightly, as I had hoped that a "desktop like" experince was possible on a mobile device, but i have used MANY diferent handsets with nice large screen and less input restrictions than your John Doe average users typical keypad phone and had to accept that it is a HUGE difference when I am delivered a site that was designed with me as a mobile user in mind - or if I am served a pice of oversized, too many links, irgnoriny my focus as a mobile user apge is delivered, that additionally ignores which media types the phone can handle.
I guess you should not try to claim this was something the miracle device from big A could solve - becasue they chaven't and: Won't.

I have used the internet quite a bit while mobile on a handset in many speeds, and this two year old E61 in front of me can do all the above from day one - from GPRS, EGPRS, 3G (WCDMA), it even also includes a
true browser (slso something that was not newly introduced by Apple per the iPhone).

Evel if I want to use WiFi, the E61 does that. It also DOES certainly last longer than a day under 3G usage.

Sprint and Verizon do EV-DO Rev.A since End of 2006 - indeed - which could have been nice in US, but will not match HSDPA 7.2 that is in rollout in the leading markets in Europe, and with no doubt also in man other markets of the now almost 3 Billion Size GSM community.

You are certainly right that - as always, the newer the chipsets the more room is left for them to be improved for power effiency.

Nevertheless - as you HAVE an iPhone: How long DOES it last under slightly heavily use?
lrmobile_rusty 12/5/2012 | 3:05:20 PM
re: iPhone Fever Hits Europe First of all, I would never compare an E61 to an iPhone because the E61 is massive. One is for people willing to have their gigantic phone on a belt clip and one isn't.

As far as battery life goes, I've been very impressed. Most days I have about half the battery remaining at the end of the day. On days when I do heavy web surfing via Wi-Fi the battery does drain more quickly. Still, I've never had to charge before the end of a day.
AllKindsOfThings 12/5/2012 | 3:05:17 PM
re: iPhone Fever Hits Europe I admit its a bit large, but i am still wearing it in my shirt or my suit pocket. I am comparing it on grounds of the technical functionality I am looking for, not for the aesthetics.

The latter is without any doubt superior on the iPhone, and I can most certainly see that gesture based touch screen UI is the first really innovative human-computer-interface approach since invention since pointing and clicking with a mouse.

With regard to the use of EDGE as air interface, there is to be sadi that while HSDPA offers a massive benefit in peak traffic, the characteristics of client server protocols that are mostly based on exchanging pairs of sort request/response messages may feel to have a bit more "direct" and "interactive" characteristic on EDGE connections. As long as data tranfer volume is not the issue (considering that you can't buy iTunes over the air anyway) and you are a "from time to time surfing" user EDGE may working as a compromise for you - Energy consumption of 2.75G is admittedly still somewhat better than 3G.
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