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Apple (Nasdaq: AAPL) is widely expected to announce soon which companies it has selected to play a role in the European iPhone network, and it looks like O2, Orange and T-Mobile will likely be among the lucky winners.
At a media event in London on Tuesday, O2 will be made the official iPhone company in the United Kingdom, according to The Guardian. In addition, Carphone Warehouse is reportedly expected to be the device's sole independent distributor for O2.
Orange, meanwhile, is expected to sell the iPhone in France, while Deutsche Telekom's (NYSE: DT) T-Mobile handles unit sales exclusively in Germany, Austria, the Netherlands, Hungary and Croatia, according to the Financial Times.
Focus on Financials
Apple's agreement with O2, assuming the rumors are correct, was the focus of particularly intense speculation Monday, as reports suggested that O2 would be turning over as much as 40 percent of the revenues it makes on the iPhone back to Apple.
Apple reportedly talked with each of the UK's four main networks -- O2, Orange, T-Mobile and Vodafone (NYSE: VOD) -- but Vodafone chose to quit the race early, The Guardian said.
When, exactly, Apple plans to reveal the news about Orange and T-Mobile or other specifics isn't yet clear, with different sources speculating about different dates either this week or next.
Neither Apple nor O2, Orange or Deutsche Telekom could be reached for comment.
'Seems Likely'
"I think this all seems likely," Rob Enderle, president and principal analyst with the Enderle Group, told MacNewsWorld.
T-Mobile is "probably the best provider across Europe, with one of the most aggressive data plans," Enderle noted, so it would be a logical choice for covering multiple European countries. Orange, meanwhile, is most powerful in France, Enderle added, so it's a reasonable choice for that country.
Carphone Warehouse is "very powerful in Europe," having already been selected as a distributor for Dell (Nasdaq: DELL) PCs, Enderle added.
The iPhones that are released in Europe will be unlocked, Enderle noted, so they will probably be more expensive than those sold in the United States. They will also "probably immediately be gray-marketed back here," he added.
iPhone or iPod Touch?
In the United States, the iPhone was unlocked from AT&T (NYSE: T) service via a hardware hack by a New Jersey teenager last month. Since then, additional hacks via software have also been announced.
Because they'll be unlocked, customers won't actually be forced to use the devices with a particular carrier. However, "the reality is that if you buy the phone from Orange, you'll probably use it through Orange," Enderle added.
What will be most interesting to watch, however, is how European consumers will lean on the choice between the iPhone and the newly released iPod Touch, Enderle said.
'A Better Deal'
Featuring the iPhone's multi-touch user interface and 3.5-inch widescreen display, the iPod Touch is essentially like an iPhone with most of the same features except the phone capability. It also comes equipped with more storage than the iPhone does.
Indeed, the iPod Touch gives consumers roughly twice the storage for a lower price, and it lets them keep whatever cell phone they already have, Enderle noted. "It's a better deal: You get more, and it's less disruptive," he said.
That is particularly true in the United States, where "it's clearly a better deal because you don't have to work with AT&T," he said. In Europe, however, "it will be a better test, because it sounds like Apple has picked good carriers," Enderle added. "It will be interesting to see which way people go."
Advance Buzz
Either way, all the hype is certain to be a welcome boon for any carrier, Bill Hughes, principal analyst with In-Stat, told MacNewsWorld.
"I think any carrier would love to have the kind of interest and mania that has been associated with the iPhone," Hughes said. "Whoever it is, I'd just say good luck -- enjoy."
