iPhone to launch outside U.S.

LONDON, England (AP) -- Apple Inc.'s iPhone will go on sale in Britain on November 9 exclusively through mobile operator O2, marking the first time the combination cell phone-iPod media player will be available outside the United States.

The 8-gigabyte model will be offered for £269, or $536 -- or $139 more expensive than what Apple now charges in the U.S. The British iPhone has the same technical specifications as the U.S. model, but the price includes the U.K.'s value-added tax.

CEO Steve Jobs declined to disclose the terms or duration of the agreement with O2. The iPhone will be sold in Britain through Apple stores, O2 retail outlets and The Carphone Warehouse PLC.

The announcement spurred speculation about further launches in Europe, but Jobs declined to comment.

"We're announcing the U.K. today. We've said we'll be in a few countries in Europe next quarter. As we roll those out, I'm sure you'll hear about it," he said.

For months, rumors have circulated that Germany's Deutsche Telekom AG has been in talks to carry the iPhone in Germany through its T-Mobile wireless unit, while Spain's Telefonica SA -- the parent of O2 -- and France's Orange have been touted as likely candidates to offer the device in Spain and France.

None of those companies has confirmed if they have even been in talks with Apple about such a move. The iPhone has been on sale in the U.S., with cell phone service exclusively provided by AT&T Inc., since June 29.

Cupertino, Calif.-based Apple announced last week that it had sold one million iPhones in the United States in 74 days after it went on sale there -- and less than a week after its price was cut by a third.

The company lowered the price of the 8-gigabyte iPhone from $599 to $399 and discontinued the $499 4-gigabyte version. It apologized to those who had paid full price and offered $100 credits for Apple products to early buyers.

Jobs was asked Tuesday if he could offer any assurances against future price reductions.

"In technology there's never any guarantees ... there's always new models of things, there's always price reductions on old models," he said. "If you wait to buy something, always looking over the horizon, you'll never buy anything."

Jobs said the price difference between the U.S. and Britain was mainly due to the inclusion of British taxes, while U.S. stores add sales tax at the till.

The O2 contract packages range from £35 to £55 ($70-$100) a month for services that include unlimited use of what the operator said was Britain's largest public Wi-Fi network in more than 7,500 cafes, restaurants, airport lounges and other locations.

Over an 18-month contract, British consumers face a minimum cost of £899 for the iPhone and call packages.

Jobs said Apple chose to team with O2 "because they were the best culture fit with Apple in the U.K."

Music, along with aggressive pricing, is a key part of O2 PLC's efforts to sign up new subscribers. The mobile phone operator sponsors annual music festivals, talent searches and a London concert arena. E-mail to a friend

Copyright 2007 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.

All About Steve Jobs • Apple Inc.