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Apple's 3G iPhone Faces Challenges Overseas
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Post Apple's 3G iPhone Faces Challenges Overseas - 05-13-2008, 09:00 PM

Apple's red-hot iPhone is currently unavailable from the company's online stores in the United States and the United Kingdom, fueling speculation that the company is reducing its inventory in advance of the rollout of a new 3G model. Some industry observers speculate that the slowdown is intended to help Apple avoid customer complaints about buying an older model just before the new 3G iPhone hits the store shelves.
According to Fortune, Apple's Worldwide Developers Conference in San Francisco on June 9 will feature a presentation by Chief Executive Steve Jobs. His keynote address would allow Apple to time the 3G iPhone's release to coincide with the anniversary of the product line's introduction in late June of 2007, the media outlet said.
Europe's Free Phone Barrier
The 3G iPhone could potentially reap big sales in overseas markets, especially in Western Europe, where operators are desperate to move their installed base to 3G, noted Gartner Research Director Carolina Milanesi.
"First they want to get people interested in using more data, and 3G delivers a better user experience," she said. "Operators also want to move people to 3G on the voice side, where they have more capacity and can offer their services at a lower cost," she added.
Gartner forecasts that 3G shipments in Western Europe will rise from about 92 million units this year to more than 112.5 million units in 2011. But Apple will have to work hard to achieve wide-scale penetration -- especially in Western Europe, where handset prices will remain "a bit of an issue," Milanesi observed.
"Customers in Europe are not used to buying unsubsidized phones on a contract," Milanesi said. "For example, you can get an $800 Nokia N95 for free on a contract when you sign up for 24 to 36 months at about $70 per month," she said....

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