iPhone, What is good for U.S. is not good for Europe

When the iPhone launches tomorrow in France and across the rest of Europe there will be one distinct difference between that market and the U.S. market. Europeans will be able to buy an unlocked iPhone from Orange, the France telecomm carrier.

That’s the law in most of Europe where the option for an unlocked version must be available.

Of course, consumers will have to pay dearly for the right to have a warranted, unlocked iPhone. Some, like techno savvy users here, may want to just unlock it themselves.

An unlocked iPhone in France is expected to sell for 650 euros, $964, U.S. and for a whopping 1,000 euros, $1,484 U.S., in Germany.

With a two-year contract, locked, iPhone buyers will see a saner, but not inexpensive price tag of about 399 euros, about $592. U.S.,plus the monthly voice and data charges that start at 49 euros per month, about $73 U.S.

Orange says it expects to sell about 100,000 devices in the first month, a not unrealistic number according to Vincent Poulbere, senior analyst at Ovum.

However, Poulbere says there’s a great deal of competition in the European market, especially for similar devices that are more highly subsidized.

“There won’t be any queues at the stores to buy an iPhone,” said Poulbere.

The European market will share one similarity with the U.S. market, said Poul-bere, users can expect a price reduction at some point in 2008, especially if a new model is introduced.

With the exchange rate extremely favorable to European shoppers some may get creative and fly to the U.S. buy an iPhone here, take it back and hack it so it can be used in Europe with a local SIM chip.

Technology is fun, isn’t it?