http://tech.yahoo.com/blogs/null/90286/iphone-a-flop-in-europe-but-why/
The iPhone has been a huge success here in the U.S. but its not the case in Europe. Actual sales have been much less than projected there. Reasons why include cost of the iPhone, cost of service, competition from Nokia and performance. The iPhone in France costs 749 euros ($1,200) and service runs up to 119 euros ($189) a month. The cost of purchasing an iPhone exceeds the cost of purchasing most laptops! Another issue is competition from Nokia. Nokia has not been a major competitor in the U.S. but it has taken a big part in the European market. The iPhone in Europe has created terrible word of mouth due to its performance. The iPhone is very slow and Europeans are used to their 3G phones that have been there for years.
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I think the main reason behind this is because the iPhone is not 3G compatible and in Europe most people buy the phone then can go to any carrier they want.
Being locked down and not having the high connection speed is an issue for all consumers world wide.
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