Apple takes iPhone to the UK

In a bid to tap the wireless phone market outside the US, Apple Inc has decided to sell its iPhone in the UK with mobile-service provider O2 Plc. O2 is owned by Madrid-based Telefonica SA, Europe's second-largest telephone company.

According to the company, the 8-gigabyte handset will go on sale in the UK in early November 2007 and will sport a tag of 269 pounds. The agreement gives Apple its first overseas partner for the iPhone and the company expects to clock sales of 10 million iPhones in 2008. For O2, the deal with Apple is expected to help it lure subscribers who may be willing to spend more money on data, music, and other features.

The realization that iPhones would succeed only if they are a hit in the Europe region has led to such a decision. The estimates are that half of iPhones will be sold outside the US in year 2009.

Meanwhile, the two companies has not revealed the financial terms of the multi-year agreement. Apple has added that consumers will be asked to sign an 18-month service contract with O2 for the iPhone. The iPhone combines an iPod music and video player with a phone that serves up e-mail and web pages. Related reports added that mobile-phone sales are expected to reach 178 million units in 2007 in the 16 countries that make up western Europe. Germany is the largest market, followed by the UK, Italy, France and Spain.