No 3G for the U.K. iPhone
Apple announced its first iPhone deal outside of the U.S. this morning, and might have made its second big mistake in the early days of its iPhone strategy.
The company announced an iPhone partnership Tuesday morning in London with U.K. carrier O2. CEO Steve Jobs made an appearance at the Regent Street Apple store to answer questions from the British press, who were curious as to why Apple decided to introduce the same EDGE phone that's on sale in the U.S. to the U.K. market.
Engadget's live blog reported that Jobs is still concerned about battery life. "The 3G chipsets are real power hogs," Jobs said, adding that he doesn't think 3G chipsets will allow for sufficient battery life until next year. That was the same answer Apple gave earlier this year to questions about the first U.S. iPhone and its dependence on an EDGE cellular network outside of Wi-Fi hotspots.
The two markets are very different, however. The U.K., and really Europe as a whole, are much further along in their deployment of faster 3G cellular networking technology than the U.S. O2 CEO Matthew Key said Tuesday that only about 30 percent of its network will be EDGE-compatible when its iPhone launches, but the carrier has already deployed 3G in many places throughout the U.K. EDGE was meant as a stepping stone for some carriers who weren't ready to roll out full 3G services, but most U.K. carriers went ahead with 3G implementations to replace their older 2G GSM/GPRS networks. (Check out GSMWorld.com if you need help deciphering the alphabet soup that is the cellular industry.)
Apple CEO Steve Jobs unveils the company's U.K. iPhone deal with O2.
(Credit: Crave UK)It's a little different back in the U.S., where 3G technologies compatible with the base GSM standard used by the iPhone are just getting under way, and EDGE was used to keep people interested during the interim. AT&T, the U.S. iPhone carrier, only offers 3G services in select cities around the country, while the U.K. carriers have a more seamless deployment of 3G technology.
Therefore, Apple's going to have to really captivate U.K. buyers with the design and interface of the iPhone. That's been the device's strong suit since the day Jobs first held it aloft at Macworld, but lots of U.S. iPhone customers had never experienced 3G networking speeds before, and therefore didn't know what they were missing. Most tech-savvy Brits interested in smart phones likely already have a 3G phone, and asking them to step back to EDGE might be a tall order.
Jobs' insistence on a high standard for battery life may pay off in the end, but it could be a tougher go for Apple in the U.K. at first. Apple and O2 are throwing in a subscription to The Cloud's U.K. network of hotspots, since O2 has limited EDGE coverage at launch.
But coming off Apple's miscalculation on the iPhone price cut backlash, you have to wonder if the company is likewise misreading the appeal of the iPhone in the U.K. Sure, it's pretty, but is it too slow? As always, people will vote with their wallets.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 

- Using iphone
- by dan1000 September 19, 2007 10:16 AM PDT
- Many of these comments are valid but for some of you are <br />missing the point, mostly because you have never used an <br />iphone. <br />I have an 8GB iphone which I have hacked and run in London on <br />the Orange network. They do not have Edge capability so when I <br />am away from a hotspot I do not have access to the internet. I <br />could overcome this issue by purchasing an O2 sim card but so <br />far it really hasn't been an issue.<br />When near a hotspot i update emails on 3 accounts and have set <br />the preference to save 200 emails. Most of the text on 200 <br />emails is loaded in the phone, I lose most of the graphics and <br />ads, etc. but I am okay with that. Then when commuting or <br />doing nothing I can peruse my emails. Most of my emails are <br />informational and rarely require a reply. At these particular <br />moments I can not surf the internet, so if that is your main <br />motivation then wait until a 3G unit hits the stores. For those of <br />you who do not have an all or nothing mentality then the iphone <br />is a joy to use.<br />I use the ipod function whenever I am away from home or office. <br />The phone rings in my earphones, I accept the call and listen to <br />my caller in the earphones while holding the phone out away <br />from me and the microphone picks up my voice quite nicely. <br />When the call is over it returns to the song I was listening to <br />seamlessly. It is an absolutely fantastic interface. Sometimes I <br />am playing Tetris or Blackjack and it returns me to the game and <br />starts the music. I'm not sure what else I could ask for. It's <br />great!
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