iPhones Too Pricey For Budget-Minded European Markets

Brad Chacos

There’s no way around it: iPhones sell like gangbusters in the U.S. Even children are chomping at the bit to get in on the Siri action . Speaking of Siri, sales of the iPhone have skyrocketed on the back of the talking wonder bot – but not in Europe. Sure, the iPhone’s doing good is Britain, but analysts are reporting that sales are slumping on the mainland, even after the launch of the 4S. Why? Because it’s so darned expensive.

The European economy has been staggering and breathing heavy the past few months, and ComTech told Reuters that “increasing signs of pricing sensitivity” could be the reason Apple lost nearly a third of its French market share in the past year. Apple saw similar losses in Germany, Italy and Spain as European buyers started tightening belts amidst talk of government cuts, unemployment hikes and “austerity measures.”

Apple’s loss is Google’s gain: Android handsets account for between 46 and 61 percent of the European market, depending on the country you’re talking about. (Although the number of Android phones admittedly far exceed the number of iPhones available.) A logical person could conclude that most of those would be lower-end models, given consumers’ price-related reluctance to buy an iPhone. But in at least one market, that logical person would be wrong: ComTech says that the Samsung Galaxy S II is the best-selling phone in Germany.

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