Reports from Europe say that Vodafone and Apple are currently engaged in tense negotiations over the European distribution of the iPhone, the world’s most anticipated mobile phone ever.

In the US, the phone is being distributed exclusively by AT&T, where the 4GB model will cost US$499 and the 8GB model will cost $599. The iPhone will be available from AT&T and Apple retail stores, as well as from Apple’s online store, from June 29.

Although there has been much speculation that Vodafone would become the European iPhone distributor in the past, new rumors have emerged suggesting that Apple and Vodafone are currently negotiating the terms of a distribution agreement.

Dutch magazine Bright reported that Apple wants control over pricing and is demanding that Vodafone guarantees sales volumes. Vodafone, on the other hand, is said to want more latitude over pricing so it can offer subsidized phone packages.

This new rumor has been enough to boost Vodafone’s share price by 2.14% on the London stock exchange.

Analyst Robert Grindle told Reuters that because there were only three or four contenders in Europe, Vodafone had a “strong chance”.

“If Vodafone don’t get it, it is because they don’t think it’s economically rational,” he said.

An official announcement about which telco gets to distribute the iPhone in Europe is expected in July, and it generally expected that the iPhone will make its European debut later this year.

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Entry was posted on Thursday, June 28th, 2007 at 2:27 pm under Apple, Cell phones.

Read more entries by John Pospisil.
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