Apple Sparks European iPhone Buzz

SAN FRANCISCO -- Apple (AAPL) appears ready to follow through on plans to launch the iPhone in Europe this quarter.

As reported by Reuters, the company has scheduled a press conference in London on Tuesday, fueling speculation that it will soon make the iPhone available in Europe's largest consumer markets. Apple is likely to discuss which local telecom carriers will provide service for the iPhone, and when customers will be able to buy it.

Shares of Apple were recently up 85 cents to $137.70.

Reports have swirled for months that Apple is working with telecom carriers in the continent's largest markets of France, Germany and the U.K. The likely suspects include O2 UK, a subsidiary of Spain's Telefonica, Deutsche Telekom's (DT) T-Mobile, and France Telecom's (FTE)Orange.

A bigger question is whether a European iPhone will operate on the faster 3G networks that are common in Europe. In the U.S., the iPhone runs on AT&T's (T) slower Edge network. Analysts have said that a 3G phone might not be available in the U.S. until after the holiday season.

"Having a phone operate on a 3G network is much more important in Europe than in the U.S.," says Darren Chervitz, director of research for the Jacob Internet fund, which owns Apple shares. "Europeans are much more mature in their usage of data services and the state of their networks."