The iPhone went on sale in the United Kingdom and Germany on November 9, 2007, and in France on November 29, 2007, yet the early feelings regarding the launch of the iPhone have been mixed in Europe. There are two prevalent questions surrounding the iPhone. First, will Apple Inc. be able to maintain the brisk sales of its signature handset at AT&T Mobility here in the United States? Second, and more notably, how will the iPhone fare overseas, as it is introduced in markets controlled by noticeably different factors? Thus far, the answer to the latter question is poorly. Those answers are not fully clear yet, however. Interest in high-end devices in Europe is possibly double that in the U.S., yet Europeans enjoy more choices and Apple faces more competition. Apples brand cachet in Europe is not as strong as in the U.S. Regarding competition with incumbent handset vendors, approximately 50 percent of Europeans have postpaid service contracts that enable them to obtain devices such as Nokia Corp.s N95 for free. Numerous analysts cited Sony Ericsson Mobile Communications as the most likely vendor to feel the heat of the iPhone, followed closely by Nokia. The consumer demographics of Sony Ericssons popular Walkman handsets--familiar young and tech-savvy males with high earnings--closely resemble those interested in the iPhone. The iPhones primary competitor is its closely related product, the iPod Touch, which offers similar functionality without a service contract or telephony. Apples iPod business is threatened as more customers choose mobile handsets as their MP3 players of choice, especially in Europe where Apple does not enjoy brand dominance. Apple will need to be flexible in its negotiations because it will face considerably different operator business models and market conditions as it tries to spread its handset around the globe.