Apple iPhone

The first of Apple Inc.’s iPhones to ship in Europe this fall will function wirelessly over slower EDGE networks as well as in Wi-Fi hot spots, the same as in the U.S., according to an industry analyst based in Italy.

The first version of iPhone in Europe “definitely will be on EDGE,” said Gartner Inc. analyst Carolina Milanesi. The first European version could ship as early as October, based on information provided by Apple, she said. Apple has said it will ship there sometime in the fourth quarter.

Milanesi said in a telephone interview that she learned about the EDGE capability of the first European iPhone from “people working on the device in Taiwan,” adding later that it was “common knowledge” it would use EDGE before it was capable of handling the faster 3G networks.

Some analysts and users have speculated that Apple would jump directly to a 3G-capable iPhone for its first version in Europe, partly owing to concerns that the Web browsing capability in the U.S. with AT&T Inc.’s EDGE network has been slow and unsatisfactory for some users who bought iPhones in the U.S. after June 29. Milanesi said a 3G-ready iPhone for Europe could ship in March 2008, running over WCDMA (Wideband Code Division Multiple Access) networks in the range of 350Kbit/sec. to 700 Kbit/sec. for download speeds. Apple would not comment for this story.

The importance of having 3G with the iPhone for better browsing capabilities is unclear because “it depends on how Europeans use it,” Milanesi said. “In the beginning, we were saying that using EDGE will limit choices. EDGE is slow and WCDMA would be better for browsing, but iPhone users won’t just use it for browsing.” Many users will rely on the iPhone as a phone and then download songs and videos from a PC instead of over the air, she said.

In Europe, Apple has committed to providing iPhones in the United Kingdom, Germany and France, so far leaving out large markets of Spain and Italy, she said, even though “Italy would be a very good market for Apple,” Milanesi said. “In Italy, people spend money on iconic devices like an iPhone, and I’m Italian so I can say that.”

Whether the European iPhone is 2.5G or 3G and the countries in which the device is sold could affect Apple’s declarations that it will sell 10 million iPhones globally in fiscal 2008, Milanesi said. “Europe is culturally different than the U.S., and I’m not sure people will queue up for three days to buy an iPhone as in the U.S.,” she added.

Source: PC World