Evidence of poor European sales?

[senorFunkyPants]

There are more mobile phones than people in the UK so thats at least 60 million mobiles and a good number of these are 3g yet:
From the Office of national statistics.
http://www.statistics.gov.uk/pdfdir/inta0807.pdf
Adults who have accessed the Internet in the last 3 months of 2007:
Per cent
Portable computer (laptop) via wireless connection 18
Mobile phone via GPRS 15
Handheld computer (e.g. palmtop, PDA) 4
Mobile phone via UMTS (3G mobile) 3

Its true that unlimited free data tarrifs will stimulate the market in the future but at the moment there simply isn't the desire to access the internet via mobile for most users.
The lack of 3G is not holding back the sales of the iphone its the price.

 

[3247]

It's the same (it's funny, because in the past, Europeans on MR would constantly complain about the American market's insistence on subsidized phones and the European preference for carrier-less ones, while conveniently failing to mention the rapid shift in Europe to match the system in the US. ).

In Germany, mobile phones have always been subsidised. However, you have always been able to use your phone with any SIM card. All providers here use GSM 900/1800, most of them also provide UMTS 2100 in urban areas. So when the two-year contract is up, you can simply switch to a cheaper provider/contract and keep your phone (and nowadays, your mobile number). Only very cheap phones sold with prepaid SIM are usually locked and can only be unlocked after two years for free.

In the US, different providers use different technologies (cdma, GSM, …) that are not even remotely compatible. So you have to buy a new, subsidised phone because your old phone has no chance of working.

 

[kdarling]

In the US, different providers use different technologies (cdma, GSM, …) that are not even remotely compatible. So you have to buy a new, subsidised phone because your old phone has no chance of working.

Only if you switch carriers, and that's only about 10% of the people each year.

Many people stay with the same carrier all their life, because it's "the best one in my neighborhood".

 

[3247]

Only if you switch carriers, and that's only about 10% of the people each year.
Many people stay with the same carrier all their life, because it's "the best one in my neighborhood".

Maybe in the US…

In Europe, about 27% switch their provider each year. That's 54% in each two-year term (which is what most plans use).

 

[mkrishnan]

Maybe in the US…

I'm pretty sure he/she was talking about the US. Not that many Germans switch between two US plans each year.

Almost half the US market is GSM... there are more GSM subscribers in the US than there are residents in Germany, if I'm not mistaken. And you can switch phones between the GSM companies without any real issue, as they are almost invariably quad band at this point.

 

[PowerFullMac]

Now, I wonder why this is? It cant possibly be because you have to pay £260 for the handset then be entered in a minimum of a £900 contract, could it?

 

[BongoBanger]

Now, I wonder why this is? It cant possibly be because you have to pay £260 for the handset then be entered in a minimum of a £900 contract, could it?

Pretty much! Although I think the minimum is about £630 if I remember correctly.

The iPhone is a nice device but it's not competitive. We'll need to see what iPhone 2.0 is like but unless it's got cutting edge features - and not just ones which give it parity - then I don't think it'll do that well in Europe unless the pricing model changes.