Apple crosses the Atlantic with iPhone

Apple is leaving no stone unturned to make the most out of Christmas holidays this time. The highly anticipated launch of the much-hyped iPhone in the UK has been scheduled for the 9th of November, just ahead of the lucrative Christmas trading period.

But there is still a hitch for the UK fans who have been waiting to lay their hands on the device as they will not be offered any discounts, like those recently announced for the US customers.

Mobile phone operator O2, owned by Spain's Telefonica has been awarded rights to sell the iPhone which will retail for £269 ($536), including VAT.

Speaking at an event from the company's flagship store in London's Regent Street, Apple chief executive Steve Jobs said that the company underwent a detailed practice to find the right partner for a UK launch.

“We are coming to the UK and we wanted to pick the best carrier for the product. The one that we felt most comfortable working with is O2. We had a lot of choices to make regarding networks across Europe, and I think we made the right ones,” said Jobs.

The terms of O2’s agreement with Apple were not available but it is believed to involve as much as a 40 per cent share of iPhone revenues being passed back to Apple.

Users will get a faster internet access with free use of 7,500 Wi-Fi hotspots, resulting from O2’s Wi-Fi hotspot roaming deal with The Cloud. The iPhone will be bundled with an 18-month contract on a tariff of £35, £45 or £55 a month, all of which will include unlimited mobile data usage.

Jobs said the iPhone price in the U.K. was higher compared with the U.S. because of VAT and the high trading costs in Europe.

According to Industry watchers the Apple iPhone will face tough competition from Nokia and Sony Ericsson in Europe who have brought up a wide range of popular smart phones in the market.

Apple is expected to announce deals with Deutsche Telekom (DT) in Germany and Orange in France in near future.