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The Honolulu Advertiser
Posted on: Wednesday, September 19, 2007

Britain to get iPhones Nov. 9

By D'arcy Doran
Associated Press

LONDON — Apple Inc.'s iPhone will go on sale in Britain on Nov. 9 exclusively through mobile operator O2, the first time the combination cell phone-iPod media player will be available outside the United States.

The 8-gigabyte model will be offered for 269 pounds, or $536 — or $139 more than what Apple now charges in the U.S. Apple CEO Steve Jobs said the price difference is mainly due to the inclusion of British taxes.

Jobs declined to disclose the terms or duration of the agreement with O2.

Jobs also declined to comment on speculation about further launches in Europe.

"We're announcing the U.K. today. We've said we'll be in a few countries in Europe next quarter. As we roll those out, I'm sure you'll hear about it," he said.

For months, rumors have circulated that Germany's Deutsche Telekom AG has been in talks to carry the iPhone in Germany through its T-Mobile wireless unit, while Spain's Telefonica SA — the parent of O2 — and France's Orange have been touted as likely candidates to offer the device in Spain and France.

The iPhone has been on sale in the U.S., with cell phone service exclusively provided by AT&T Inc., since June 29.

Cupertino, Calif.-based Apple announced last week that it had sold 1 million iPhones in the U.S. in 74 days after it went on sale there — and less than a week after its price was cut by a third.

The company lowered the price of the 8-gigabyte iPhone from $599 to $399 and discontinued the $499 4-gigabyte version. It apologized to those who had paid full price and offered them $100 credits for Apple products.

Jobs was asked yesterday if he could offer any assurances against future price reductions.

"In technology there's never any guarantees ... there's always new models of things, there's always price reductions on old models," he said. "If you wait to buy something, always looking over the horizon, you'll never buy anything."

The O2 contract packages range from 35 to 55 pounds ($70-$100) a month for services that include unlimited use of what the operator said is Britain's largest public Wi-Fi network in more than 7,500 cafes, restaurants, airports and other sites.

Over an 18-month contract, British consumers face a minimum cost of 899 pounds ($1,798) for the iPhone and call packages.

Jobs said Apple chose to team with O2 "because they were the best culture fit with Apple in the U.K." Music, along with aggressive pricing, is a key part of O2 PLC's efforts to sign up new subscribers. The mobile phone operator sponsors music festivals, talent searches and a London concert arena.