There are indications that the iPhone has not been the smash hit in Europe that carriers first expected. Carriers apparently overbought on inventory and are now dumping the 8BG handsets to clear the way for the new 3G models expected in June.
T-mobile in Germany, O2 and Carphone Warehouse in the UK have all discounted the handsets. Orange, the exclusive carrier in France, may be next to offer steep price cuts. In the UK, the price of the 8GB model was slashed more than a third to £169. This new price is only in effect until June 1, however. A spokesperson for O2 denied that the price reduction has anything to do with bloated inventory of the devices.
This is interesting as Europe is a very sophisticated market for mobile phones and has traditionally led the rest of the world in sophistication. The 3G network, for instance, is well built out here and most new multi-function or smartphones offer 3G. Thus, one of the reasons speculated why the iPhone might not have done as well as some expected. Because of its great web connectivity, the iPhone craves for fast connections. When you go to a store to play with one, they are always connected to a local WiFi network, not the cell network.
This is a good article in the Times outlining what may be coming with the iPhone, including some radical changes in form factor when the new models are expected to be announced June 8.
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