Apple’s iPhone versus Nokia: The Battle for Europe

Apple’s iPhone versus Nokia: The Battle for Europe

By Nathan Statz

September 13, 2007: Having just sold their one millionth iPhone in the US, Apple have taken the US market by storm, but with its European release just around the corner stiff competition is expected from Nokia’s answer to the iPhone phenomenon.

Apple has always been a master of hype, and the take up of the iPhone has been no exception to this rule. Having sold one million units in just seventy four days is a remarkable achievement for a new player in the mobile phone market, but the grand entrance may be a little less bright when it hits European shores.

"One million iPhones in 74 days - it took almost two years to achieve this milestone with iPod," said Steve Jobs, Apple's CEO.

Nokia hasn’t been idle, releasing details of two new phones to hit the market this year as well as a teaser video which included the first images of Nokia’s answer to the iPhone. The phone that was previewed was ridiculed by analysts as a complete ripoff of the iPhone as it appeared to be a direct copy, just with a Nokia label.

In addition to the as yet un-named iPhone competitor, Nokia also has the N81 and N82 coming out this year with increased capacity and sex appeal as the battle for the European market heats up.

According to Joss Gillet, senior analyst at Ovum, Sony Ericsson is not likely to stay quiet either, as it owns the optimized music market in Europe. Apple also has the problem of brand awareness, where Sony Ericsson has already proven itself in most European markets.

Other companies are recognising the potential in the European market and are expected to gear up for the fight ahead. Gillet believes there are no doubts we will see the introduction of a thin Samsung iPhone challenger soon.

“Ultimately, one can argue that Steve Jobs is aware of the challenges ahead, and that Apple's target is to own only one percent of the total market and make it a profitable exercise” says Gillet. Whether or not Apple will be content with what they have remains to be seen as the iPhone is expected to be released in Europe later this year.

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