T-Mobile Doesn't Expect to Lose Competitiveness Due to iPhone
BERLIN -(Dow Jones)- Deutsche Telekom doesn't anticipate its wireless telephone operator in the USA will "lose competitiveness" due to the introduction of the iPhone by a rival, Chief Executive Rene Obermann told an analyst conference call Thursday.
The CEO added however that it was "a little early" to quantify the impact of Apple's iPhone on Deutsche Telekom's U.S. business in the second half of 2007.
Apple launched the highly-anticipated iPhone smartphone, available only to subscribers to AT&T, earlier this summer. It is designed to appeal especially to younger people, a customer segment also targeted by Deutsche Telekom's T-Mobile USA unit. The exclusivity deal between Apple and AT&T is expected to boost that company's market share.
Obermann said that T-Mobile USA is closely monitoring the market and could alter its cellphone lineup to respond to iPhone, if necessary.
Deutsche Telekom, Europe's largest telecommunications company by sales, is relying heavily on its U.S. unit for growth.
Earlier Thursday, the company disclosed that group sales in the second quarter grew 2.9% to EUR15.6 billion, from EUR15.13 billion a year earlier, with growth in the U.S. more than compensating for the shrinking of its fixed-line business in Germany.
Company Web site: http://www.telekom.de
-By Joon Knapen, Dow Jones Newswires; +49-30-28884121; joon.knapen@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 9th August 2007