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Deal for Apple’s iPhone with Orange in France may be delayed due to French law

Friday, October 5, 2007 · 9:44 am · 47 Comments

“France Telecom’s Orange brand is contemplating the prospect of not being able to launch Apple’s iPhone in France in time for Christmas,” MarketWatch reports.

“The difficulties [in reaching a deal] stem from a French law that would require the iPhone to be sold both with and without contracts, undermining its exclusivity for Orange and Apple’s demand of up to 30% of voice and data revenues,” MarketWatch reports.

Full article here.

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Comment Feed

47 Comments

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dan

Friday, October 5, 2007 - 9:56 am · Reply

fewkin frogs! ask the French public what they want, you jerkoff officious sneering Gallictards
en

Friday, October 5, 2007 - 9:56 am · Reply

Ah, the French. I think that they are their own worst enemy.

en
bob

Friday, October 5, 2007 - 9:58 am · Reply

ask the French public what they wan” im sure they would want it unocked, most of us do lol
marko

Friday, October 5, 2007 - 9:58 am · Reply

The French ! Ha.
8R

Friday, October 5, 2007 - 9:59 am · Reply

Ah, socialism!
jay

Friday, October 5, 2007 - 10:02 am · Reply

Tell me if I’m missing something on this because I’m confused. After all the bitching about the iPhone being locked, you have a country saying no to locking and now there’s bitching about unlocking?
Jack

Friday, October 5, 2007 - 10:11 am · Reply

For once I agree with the French.
shiva105

Friday, October 5, 2007 - 10:11 am · Reply

That’s one French law I happen to agree with. From what I understand, mobile phones are typically not subsidized in Europe like they are here in the US, so there’s no reason to require lengthy contracts. That’s the trade-off we make here- we get phones for low prices, but we sign years-long contracts with the providers.
Makes me wonder if the iPhone is being subsidized at all. If it’s not, that’s another reason to hold off- the only benefit to signing a lengthy contract is to the service provider. The consumer doesn’t benefit if there’s no discount on the hardware.

I’ll wait until the iPhone allows 3rd party apps and is available on sevice providers other than AT&T;. The “cool” factor of the iPhone isn’t worth the price to me, especially since I’d lose some capabilities I have on my current phone. And the iPod side of the iPhone doesn’t impress me- 8GB just isn’t enough space. I’m currently using about 40gb on my 5th gen iPod, and I sure don’t see an iPhone replacing it.
sd

Friday, October 5, 2007 - 10:17 am · Reply

@shive105

Not sure what you mean by Europe, but here in the UK, mobiles are heavily subsidized. I’ve yet to pay for a phone in the 3+ years I’ve been here (new phone each year, presently a recent razr). Add to that the 12 months free (400 minutes / month) contract, and I’ve not paid a cent. I’d consider that subsidized, no?
The 84 Mac Guy

Friday, October 5, 2007 - 10:18 am · Reply

Tough call for the French. Do they choose freedom or style? They are going to have to smoke a few cigarettes to figure out their preferences on this one.
Mr. Reeee

Friday, October 5, 2007 - 10:20 am · Reply

I see the Nazi’s are out in force today.

I wonder how many of the people who disparage France and the French have ever spent time in France or know much of anything about it.

They DARED disagree with the US President? Rotten bastards. Cowards. They should do everything we tell them to do!

Knowing what we all know today, they look pretty smart.

Back on topic…
I’d say we probably ALL would like to get our grubby mitts on an iPhone without being forced to sign a contract with AT&T;. We want iPhones without AT&T;.

The entire US model for cell phone providers is downright un-American. Freedom of choice is what we ALL want! Isn’t it in the Constitution? (I exercized MY freedom of choice by purchasing an unlocked phone.) Isn’t that one of the reasons that we all CHOSE Macs?
qka

Friday, October 5, 2007 - 10:21 am · Reply

Why are all the Yanks here criticizing the French? Wherever you are, if you have a problem with the law, contact your appropriate elected officials.

Last I checked, France was a democracy. Weren’t there headlines earlier this year that they had elected a new President, and while he was visiting the US he made a stop in Kennebunkport?
Predrag

Friday, October 5, 2007 - 10:29 am · Reply

I completely agree with the French law. Its purpose is obviously to protect consumers from predatory contracts such as those made by Apple with AT&T;, O2 and T-Mobile (US, UK, Germany). As most here know, Apple is getting anywhere between $350 (from existing AT&T;customers who buy an iPhone) to $550 (new customers) for each iPhone sold in the US. That is after cost of manufacturing and distribution (about $250). Due to this agreement, we can only get this phone with one choice of carrier, and we must stay with it for at least two years.

In France, you are FREE (as in: freedom fries…) to choose ANY carrier with ANY phone (they’re all GSM, so no technological barriers here). That way, carriers compete on (surprise) quality of service and/or pricing. The law doesn’t allow two-year contract requirement.

The only way France will see the iPhone on their market would be if Apple were to sell it unlocked (legitimately) for about 600 euros (US$850). There might be some EU laws that would prohibit this kind of differential pricing for different market segments in EU. I wonder if Apple could get off by claiming that the price in UK and Germany were actually higher, but portion of it was shared between the consumer and the carrier.

As an AAPL stockholder, I fully support Apple’s exorbitant highway robbery-style kickbacks they get from AT&T;(and soon from O2 and T-Mobile). If they can squeeze them, go ahead; it keeps the stock moving North. As a consumer (in the US), though, I’m not sure I would be willing to pay $800 (which is gross revenue Apple gets for every iPhone sold to a switcher) for any kind of phone, even if it IS the iPhone. Obviously, free market is doing what it does best, which is why people are snapping up the iPhone, and why Apple is getting what it wants.

This is the price you pay when there is no competition and you have only one choice. France made sure their consumers have choices.
Markkus (one guy from Switzerland)

Friday, October 5, 2007 - 10:34 am · Reply

Not just in the UK but in most European countries mobiles are heavily subsidized.
Spark

Friday, October 5, 2007 - 10:38 am · Reply

The new French President, Nicholas Sarkozy, is good guy and it is now okay to refer to your ‘patriot fries’ once again as ‘french fries’. What a difference an election makes. France is our friend and ally again. Viva le France!

Sorry about the iPhone thing mon ami.
Martin

Friday, October 5, 2007 - 10:43 am · Reply

@dan, etc…

this is not a french issue, no country in the EU allows what Apple did with AT&T;, and the consumers are the winners here.

most european countries have even more strict laws than France.

in Belgium, finland, switzerland a carrier can’t have exclusivity at all.

Apple should be realistic, and drop their outrageous, and illegal demands.
ron

Friday, October 5, 2007 - 11:01 am · Reply

We give you: French fries, French kisses, French safes, frog marching, frog legs. And now French law, guilty until proven innocent. All crap. Wine’s good tho’.
Tommy Boy

Friday, October 5, 2007 - 11:06 am · Reply

@ Mr. Reeee:

Q: What is France’s favorite tactic in battle?

A: Surrender
yawn

Friday, October 5, 2007 - 11:21 am · Reply

who cares — lets go India, China then we are talking
Mr. Reeee

Friday, October 5, 2007 - 11:21 am · Reply

Yo Tommy Boy:

The French, after Napoleon, of course, don’t fight unless it’s necessary. When faced with overwhelming force, like the German Blitzkrieg tactics of 1940, probably opted for survival over certain suicide. They ran a heck of a guerilla war, though!

OUR Pocket Napoleon thinks different. As long as someone else does the fighting, he’s all for it. Funny how many Vietnam era draft dodgers are such hawks when everyone else’s blood and kin are in the line of fire.

BTW, my cousin just got back from our glorious conquest.
Plouf1st

Friday, October 5, 2007 - 11:29 am · Reply

I am French.

Mobiles are subsidized here too.

But resellers have to publish the price without sudsides, and have to offer the possibility to sell the mobile only.

–> I usually agree on things french (us ) do bad, but for once, i think ou way is more fair for customers.

–> When apple will sell cars, what will you do if apple ask you to buy gas at only one brand ? It should work independently

Anyway, it’s a REALLY interesting internaional thread of point of wiews :p

Kisses to all.
spaceMan

Friday, October 5, 2007 - 11:34 am · Reply

A rose by any other name…
Subsidized, amortized, one-time-charge… they all amount to the same thing … pay me now or pay me later.

I believe the issue at hand in France is the requirement to have no long term contracts. Mobile carriers have lots of creativity in providing incentives.

You want the lower monthly rate? OK, sign here for 2 years. Want it lower, sign here for 3 years.
What, no contract? no problem, that’ll be higher monthly ‘pay as you go’ option.

The iPone ( Le iPhone ?) is ideally suited in that there is a one time charge (the purchase).

The only challenge is to meet the local legal requirements, and also have Orange and Apple agree on how to share the ‘pay as you go’ option.
Pfuuu

Friday, October 5, 2007 - 12:06 pm · Reply

@Tommy Boy
@ Mr. Reeee:

Q: What is France’s favorite tactic in battle?

A: Surrender

—
Obviously, if the French had not been there for America, you would not have had your revolution… Think about it, Americans… You know you love everything French… You’re just annoyed by that simple fact… We make better fashion than you do…
Jacques

Friday, October 5, 2007 - 12:08 pm · Reply

@Spark,

“Viva le France! ” – all too typical American ignorance. How about “long leave persident Bush!”?

I pick civilization over military might any day.

It is “Vive la France!”
Freakshow

Friday, October 5, 2007 - 12:12 pm · Reply

Gotta love the French! MMMMMM, that smell….

MDNWord: Using…

As in using deoderant is wrong…