UPDATED: iPhone to launch in Europe by December: Apple testing wireless corporate e-mail

The iPhone will be launched in “a few major countries” in Europe before the end of December, Apple Inc. executives said this afternoon during a conference call to discuss the company’s earnings.
By that time Apple expects to sell one million units between sales in the United States and Europe. Company executives said that, in contrast, it took seven quarters to sell one million iPods.
Apple expects to launch the device in Asian markets during 2008, according to the company. Apple executives clarified that the company’s oft-mentioned goal of selling 10 million iPhones by the end of 2008 meant global sales that combine results from U.S., European and Asian markets. The company’s executives declined to give any market share goals for its foray into the global mobile-phone business.
“Our primary focus is not on early sales,” one Apple executive said in response to an analyst’s question on current demand for the iPhone. “We’re looking for a third business (beyond Mac computers and iPods). It won’t be done overnight. Progress will be measured in years, not months. We’re confident we can succeed.”
Apple executives said that more 8 GB models of the iPhone have been sold at $600 than the 4 GB models, priced at $500-possibly a reflection that American consumers indeed will pay top dollar for skillfully marketed converged devices, a question avidly contemplated by incumbent handset vendors. Apple declined to give an average selling price (ASP) for the iPhone.
The company acknowledged that it would expand the iPhone product line, but would not give details.
Apple executives said that the company would watch carefully for any evidence that the music-centric iPhone was “cannibalizing” iPod sales. Another potential drawback to the iPhone mentioned by analysts is whether it can or will support secure corporate e-mail. Apple executives said this afternoon that corporate customers were currently running trials of such an application.
Apple said it sold 270,000 iPhones during the quarter, which included just a day and a half of retail availability, and that the device generated $5 million in revenues. Apple’s carrier partner AT&T Mobility said that it activated 146,000 iPhones during the same period.
Apple executives apologized to customers who experienced activation problems, but added that AT&T had resolved those problems.
As to whether the company was surprised by any aspects of its foray into the mobile phone market, one executive responded: “We’re beginners, so there’s something to learn everyday.”
Apple’s company-wide profits surged 73% over the same quarter a year ago due to sales of its Macintosh computers and iPod music players, numbers that beat analyst expectations. The company’s stock was up around 10% on the news in volatile, after-hours trading.