Apple Sets U.K. iPhone Launch

Until now, Apple has taken tentative steps to reach the European crowd. Only 11 of Apple's nearly 200 stores are in Europe, and those are concentrated in the U.K.

But the iTunes music service is available in the native languages of 22 countries around the world, most of which are in Europe's affluent regions. Sales from Europe accounted for 23% of revenue and 30% of operating profit in the first nine months of the fiscal year.

Over that period, European sales jumped 33%, compared with 23% in the U.S. Operating profit in Europe more than doubled, vs. a 60% gain in the U.S. Sales in Japan, meanwhile, contracted, underscoring Europe's growing importance.

The launch of the iPhone in Europe comes as the device is enjoying success in the U.S. Apple sold its 1 millionth iPhone well ahead of schedule, and it has become the best-selling multimedia phone, or "smartphone," in the U.S., according to data tracker iSuppli.

The company is ramping up production to meet increased demand after it slashed the price of the iPhone by 33%, or $200, in the U.S.

Still, selling iPhones in Europe will be more challenging. Europeans, who are generally savvy users of mobile data features, may balk at the iPhone's slower "Edge" network. Most European carriers offer phones running on faster "3G" networks for easier Web surfing.

Europeans can typically use the same phone with different carriers, something Americans cannot do. They might find it stifling that the iPhone works only on a single carrier's network -- though hacks have already been devised to circumvent that restriction.