Apple’s 3G iPhone Faces Challenges Overseas

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 stock 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 day 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, particularly 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 public interested in using more info, and 3G delivers a better user experience,” she said. “Operators additionally want to move humans 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 that year to more than 112.5 million units in 2011. But Apple will have to work hard to achieve wide-scale penetration — particularly 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….

Orginal post by Top Tech News

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Netvouz
  • DZone
  • ThisNext
  • MisterWong
  • Wists
Related Articles
  • Targeting Apple, Nintendo Unveils Its Latest Device
  • iPhone 3G Shortages Could Last for Weeks
  • Apple Fixes MobileMe Service on the Sly
  • iPhone Expansion Carries Risks for grade and Stock
  • Analyst - 1 in 10 iPhones to be pre-paid
  • Review: Sprint’s Phone Is iPhone Clone Done Right
  • iPhone Owners May Not Need Apple’s New 3G Model
  • Yes, No, possibly: Will there ever be Flash on the iPhone?
  • Softbank Announces iPhone’s Price Point, Sales Strategy
  • Blackberry Faces a Strong Challenge From the iPhone
  • No comments yet. Be the first.

    Leave a reply