Wooing iPhone
January 12, 2007
The scramble has begun to see who in Europe will see their company name appear on the sleek display of Apple's iPhone when users make a call. In the US, California-based Apple has entered into an exclusive agreement with America's biggest mobile phone operator, Cingular. Whether the company with what many are calling the Midas touch will do the same in Europe is unclear, especially since the European market is more fragmented than in the US. It is not yet known how contracts between Apple and mobile phone operators will be structured.
But major phone operators in the UK are reported to already be wrangling for Apple's favor. Telefonica, the Spanish company which owns O2 -- operating in both Germany and the UK -- has held preliminary talks with Apple chairman Steve Jobs, according to The Times, a UK daily.
The paper reports that for the UK market, Apple is expected to offer the phone exclusively to one network operator. Besides O2, Vodafone, Orange and T-Mobile, all big presences in the UK, are expected to bid for the contract.
Germans low key for now
With the high-decibel buzz currently around the multifunctional iPhone mobile device, analysts say they aren't surprised that the maneuvering by operators has already started, although many, especially in Germany, are keeping quiet about it.
A spokesperson from Vodaphone D2 would only describe the iPhone as "very interesting," given that the device fits in well with the company's strategy of combining multimedia and a music player into its phones.
The headquarters of T-Mobile, the mobile arm of Deutsche Telekom, was also reserved: "We're reviewing if we want to market the iPhone."
Marketing the new device, which most critics are raving about, could be very interesting for providers. Despite the iPhone's big price tag -- the starting price in the US is $499 (385 euros) -- it is expected to be a bestseller for Apple. That could convince mobile phone providers to pay a higher price to have their brand exclusively aligned with the device.
The Times has reported that in Britain, operators are expected to compete aggressively for the exclusive rights, since they are seeking an edge over competitors in an ever-tighter market.