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Apple Jumps on iPhone Talk

The red-hot phone could soon be on sale in Europe.

Apple (AAPL) - Get Apple Inc. (AAPL) Report shares jumped on a report that the iPhone has cracked the European market.

Confirming speculation last month,

FT Deutschland

, the German counterpart of the

Financial Times

, reported Wednesday that Apple has signed exclusive supply contracts with


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U.K. unit O2,

Deutsche Telekom's

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T-Mobile in Germany and

France Telecom's


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Apple will get 10% of the monthly proceeds from calls and mobile data charges accrued by users in a revenue-sharing deal, according to the report.

Analysts say the deal sounds similar to the agreement between Apple and


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here in the U.S. That five-year exclusive contract requires AT&T to share revenue over the customer's two-year pact. AT&T also pays Apple a bounty of about $200 for each new customer.

The agreements are in place in time for the all-important holiday buying season and are key to Apple hitting its goal of selling 10 million iPhones by the end of 2008.

The three exclusive contracts leave mobile phone giant


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shut out of the European iPhone sweepstakes.

"Vodafone was the front-runner because of its broad geographic coverage," American Technology Research analyst Shaw Wu wrote in a note on Wednesday. But Wu says a bidding war likely worked against Vodafone and in favor of specific carriers "tailored for specific regions and/or countries."

Industry observers expect that more iPhone agreements will be struck next year in Europe and Asia.

Apple shares rose $3.87, or 3%, to $131.44 in midday trading Wednesday.