iPhone Flies 1st Class to Europe

Rollout starts tomorrow; UK deal a bonanza for Apple
By Kevin Spak,  Newser Staff
Posted Sep 17, 2007 6:07 PM CDT
iPhone Flies 1st Class to Europe
The new Apple iPhone is seen in this June 29, 2007 file photo in New York. The iPhone can be bought in China, even though Apple Inc. isn't selling it there and the gadgets don't function properly despite costing nearly twice as much as authorized models in the United States. (AP Photo/Jason DeCrow,...   (Associated Press)

European technophiles are about to get their fingers on the iPhone’s touchpad, and thanks to some 11th-hour bargaining, O2, the UK’s largest mobile operator, will have the franchise there. But O2’s deal is “madly money-losing,” a competitor tells the Guardian, because Apple reaps as much as 40% of O2's revenues from use of the gadget.

Wireless giants Orange and T-Mobile, holders of the French and German rights, both held out hope for part of the UK market after Vodaphone dropped out of the competition—until O2 swooped in. “If sharing revenue brings a bigger pie to the table, then we’ll be happy to share that pie,” O2's CEO told the Times of London. (More iPhone stories.)

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