iPhone a no-show at Apple Expo (and now we know why)
The Apple Expo -- Europe's largest Apple and Mac tradeshow -- kicked off in Paris this week to little fanfare. Not helping matters was the conspicuous absence of iPhone, which had been widely expected to make its French debut at the conference. So it doesn't take a genius to figure out that something went awry.
For the past three days, that something has been the subject of considerable debate, especially considering that a spokesperson for France Telecom told Dow Jones last Thursday that company had definitively "signed an agreement with Apple to sell the iPhone."
In addition, other stars seemed to be aligning at precisely the right time -- Apple chief executive Steve Jobs had planned a lengthy trip to Europe and in the days leading up to the Paris expo had ushered the iPhone into both the UK an Germany during separate press conferences in those respective regions.
So what happened? According to a report posted to the Challenges website Thursday, France Telecom -- which umbrellas the Orange brand -- and Apple are struggling to come to an agreement on the distribution of the handset in France.
Without citing sources, the French weekly said Apple and the French carrier are also at odds over the percentage of service revenues the telecom operator had to give to Apple as part of the distribution deal (reportedly 10 percent). Should the two parties fail to reach an agreement quickly, the launch of the iPhone in France ahead of the crucial Christmas season could be jeopardized, the report added.
This has left more than a few onlookers scratching their heads. Did France Telecom jump the gun before the ink on its contract with Apple had time to dry? Was its statement last Thursday a miscommunication between corporate and media relations? Or did the carrier pull an abrupt 180 and elect to bow out of a just-signed agreement within a certain grace period?
Those questions still seek answers.
For the past three days, that something has been the subject of considerable debate, especially considering that a spokesperson for France Telecom told Dow Jones last Thursday that company had definitively "signed an agreement with Apple to sell the iPhone."
In addition, other stars seemed to be aligning at precisely the right time -- Apple chief executive Steve Jobs had planned a lengthy trip to Europe and in the days leading up to the Paris expo had ushered the iPhone into both the UK an Germany during separate press conferences in those respective regions.
So what happened? According to a report posted to the Challenges website Thursday, France Telecom -- which umbrellas the Orange brand -- and Apple are struggling to come to an agreement on the distribution of the handset in France.
Without citing sources, the French weekly said Apple and the French carrier are also at odds over the percentage of service revenues the telecom operator had to give to Apple as part of the distribution deal (reportedly 10 percent). Should the two parties fail to reach an agreement quickly, the launch of the iPhone in France ahead of the crucial Christmas season could be jeopardized, the report added.
This has left more than a few onlookers scratching their heads. Did France Telecom jump the gun before the ink on its contract with Apple had time to dry? Was its statement last Thursday a miscommunication between corporate and media relations? Or did the carrier pull an abrupt 180 and elect to bow out of a just-signed agreement within a certain grace period?
Those questions still seek answers.
Comments
Jon
Or is it something to do with French law that says a mobile phone *must* be unlocked after 6 months if a customer requests ... how will Apple square that one ?
Would this necissarily apply though? Since the phone is a US phone made by a US company...
I'm not a law student though, so I'll admit that I don't know laws real well.
Would this necissarily apply though? Since the phone is a US phone made by a US company...
I'm not a law student though, so I'll admit that I don't know laws real well.
Without any understanding of French law, all we can do is compare Apple to Orange.
Without any understanding of French law, all we can do is compare Apple to Orange.
heh, heh
Would this necissarily apply though? Since the phone is a US phone made by a US company...
I'm not a law student though, so I'll admit that I don't know laws real well.
IANAL, but my understanding is if you are a U.S. citizen, you can steal and murder while visiting France because the laws don't apply to you.
This reminds me of the Apple-Cisco agreement on the iPhone name that happened and didn't happen just before MacWorld SF. So it's also possible that Apple balked at whatever changes Orange made to the version of the agreement that Orange signed and submitted back to Apple.
Well, now we'll see who blinks first. Or if Apple will go dating again and marry someone else in France.
IANAL, but my understanding is if you are a U.S. citizen, you can steal and murder while visiting France because the laws don't apply to you.
Yes, you can do that in France because they'll just want to have a nice diplomatic talk about it after, but better not do that in Singapore...
Or is it something to do with French law that says a mobile phone *must* be unlocked after 6 months if a customer requests ... how will Apple square that one ?
Jon
This wouldn't cause a last minute (seemingly) change of plans, though. Apple will have known the conditions for selling in each country from the start.
It doesn't surprise me that the iPhone is not on display at the Apple Expo, just as it's not on display at the Apple Store in Regent Street yet. They want to boost the attendance on release day.
Knowing Apple, it could just be that steve was pissed off with Orange for blabbing to the media and stealing his thunder, so he's making them sweat a bit and look foolish...
Or is it something to do with French law that says a mobile phone *must* be unlocked after 6 months if a customer requests ... how will Apple square that one ?
Jon
As anyone at Microsoft will tell you US computer companies doing business in Europe have to comply with EU law.
I'm also not a law student or lawyer, just an educated consumer
Or just amass tens of thousands of dollars in unpaid parking tickets.
Or is it something to do with French law that says a mobile phone *must* be unlocked after 6 months if a customer requests ... how will Apple square that one ?
Jon
Try this:
Apple does not care whether or not France's law requiring unlocking the phone, upon consumer request, happens or not. You buy the phone as an end user and you pay Apple for that phone.
If you hack that phone you void the warranty: No technical support if the phone fails, including battery replacement. This would be true whether or not the phone could be used with any Telco.
France knows if it wants the innate branding of the iPhone it has to fork up 10%. If that person leaves in 6 months that 10% for 6 months isn't a long time to generate additional sources of income to compensate for Apple's service provider tax.
Apple doesn't care. Apple doesn't have to care and nor should they care.
If Apple had their druthers they would prefer that the phone work for all carriers with a 10% service tax.
I'm sure Apple would exchange that tax for a larger piece of the Video/Audio service that I imagine Apple has to pay when folks aren't near a WiFi Hotspot and use the telco to download a mp3 file.
Don't be surprised if telcos have been trying to squash the WiFi in hopes people would be stupid enough to waste minutes on downloading Audio/Video files.
Bottomline: Telcos don't want to lose any profit margins they currently get, but they are reaching a saturation level. The iPhone creates a new market whether you agree with it or not.
What would really change the landscape is if and when Google lights their Telco service and opens it up to all phone providers where the consumer would decide which is the most popular product by virtues of phone sales.
I'd imagine Phone providers would be willing to help provide funds for this network if they know they won't be controlled by a dictator and have their product crippled.
Let France change their mind. Let the rest of the EU providers pay and watch France turn an about face on it.
They only provide the Network. They don't provide the end product.
It's not like with the DRM where the labels want control.. No, this time it's just Apple that wants to set the rules and control as much as they can. I don't like it. I hope the iPhone gets unlocked by law sooner rather than later.
Either way Apple wins. They can either sell the iPhone for $400 and get monthly dues from select carriers or sell it unlocked for more money if it occurred right away. By the time anything like that would occur the R&D and marketing costs would be more than accounted for, there would be millions of people with 24 month (or 18 in the UK) paying Apple indirectly for the use of the iPhone and it will then be open to more customers.
But the law on this could take as long as AT&T and Apple's contract. So it's not a quick fix to your unlocking or hacking desires. Apple does has a case here regarding using select carrier lock-ins. One, other device manufacturers do it. Two, Apple is providing services that can only be achieved when working with select partners.
Who cares about France anyway?
Flamebait 'tard
Or is it something to do with French law that says a mobile phone *must* be unlocked after 6 months if a customer requests ... how will Apple square that one ?
Jon
How about this: The French iPhone will come with a non-removable SIM card?
This wouldn't cause a last minute (seemingly) change of plans, though. Apple will have known the conditions for selling in each country from the start.
It doesn't surprise me that the iPhone is not on display at the Apple Expo, just as it's not on display at the Apple Store in Regent Street yet. They want to boost the attendance on release day.
Knowing Apple, it could just be that steve was pissed off with Orange for blabbing to the media and stealing his thunder, so he's making them sweat a bit and look foolish...
That would be childish. If apple signed an agreement with a company, that company has a right to announce the deal. It's not like they are a supplier to apple. It would be like a company getting walmart to agree to carry their products but pulling it off the shelves after walmart announces they will start carrying the products. At the end of the day, apple makes no money if they do not sell the iphone. I'm sure france telecom is still selling phones, with or without the iphone.