T-Mobile, which won the exclusive right to offer iPhones in Germany has slashed the price of the 8Gb model amid by 75%. The launch of the 3G version is expected in June.
Germans can buy the first generation iPhones for â‚¬99 provided they sign up for a two year contract on T-Mobile's most expensive, XL tariff at â‚¬89 per month.
The launch price was â‚¬399, far above the price charged in the US. The iPhone has not proved as popular in Europe as it has in the US, due in part to higher prices, but also because it did not include 3G. While this is no handicap in the US where 3G has not been widely deployed, it put many Europeans off, appearing rather behind the times.
Also, Apple displayed an alarming ignorance of local law and culture by trying to impose the exclusive, revenue-sharing model it foisted on AT&T in the US in Europe. The lead to law suits and squabbles all round. In Germany Vodafone sued T-Mobile, accusing it of anti-competitive behaviour over its exclusive deal with Apple and in France, Apple is legally obliged to sell unlocked phones, which clearly came as something as a surprise.
Research just published by Comverse found that users are most receptive to advances in voicemail, including visual voicemail, a key feature of the iPhone.
For an analysis of how the iPhone has affected the global handset market, see AnalysisWire.