The German Way: Life in Austria, Germany, Switzerland

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   iPhone - Part 1 | iPhone - Part 2 > Cell Phone Glossary

Das iHandy: das iPhone in Deutschland

Since 2007 it has been possible to buy an iPhone in Germany without a contract. In 2011, Americans finally got that same option. Apple began offering an unlocked iPhone in the US in June 2011. (Also see the AT&T iPhone unlock info below!)

T-Mobile store in Germany iPhone 4S
The iPhone 4S for sale at a T-Mobile store in Germany. PHOTO © Hyde Flippo

NEW! AT&T now unlocks iPhone!
Good news for expats in Germany or headed to Germany! If you have an AT&T iPhone that is out of contract, as of April 2012 AT&T began offering to unlock the phone, something they had long refused to do. If you meet the conditions (account in good standing, past 2-year contract), you can now get your iPhone unlocked at an AT&T store or online. See How to Unlock Your AT&T iPhone.

Apple’s decision to finally offer unlocked, contract-free iPhones in the US is a real game changer! It is particularly good news for Americans headed to Germany and Europe, and who want to buy an iPhone. See the details below.

Already have an iPhone?
Then go to this page: Taking an iPhone to Germany

Europeans have long been used to buying and using cell phones without a contract. In contrast to the USA, prepaid and unlocked mobile phones in Germany and Europe have been very popular for years. Until recently (June 2011), you couldn’t even buy an unlocked iPhone in the US from Apple or AT&T. (You could legally “jailbreak” an iPhone, but that’s not really the same as buying a contract-free phone.)

Cell Phone Glossary: Still don’t know what GSM or a SIM card is? See our “Handy” Glossary for help.

It was not that many years ago that most Americans had never even heard of a SIM card, much less used one! The GSM mobile phone technology used in Europe has always required a SIM card. The iPhone also has one, but most users don’t even know how to access it. (Verizon’s CDMA version of the iPhone 4 has no SIM card, which is just one of many reasons it won’t work in Europe. The new iPhone 5 (and the 4S) solves this problem by working on both GSM and CDMA networks. See more below.)

The AT&T vs Verizon iPhone
In June 2011 Apple began offering the iPhone without a contract (unlocked) in the US. If you're headed for Europe, be sure to get the new iPhone 5 or 4S (locked or unlocked). The older Verizon iPhone 4 does not work in Europe.
 PHOTO: Apple Store

A SIM card allows a single mobile phone to be used on two or more different networks from different providers, depending on which card you’re using. That is one of the many useful and money-saving tips we offer on our cell phone pages. But Apple has always kept its iPhone tightly locked up – in more ways than one. Users can’t even change the battery! (On most GSM cell phones, the SIM card is inserted in a slot underneath the battery. See below for the SIM slot’s location on the iPhone.)

micro-SIM card
The iPhone micro-SIM card (top) is less than half the size of a normal SIM card.
PHOTO: PCWorld
Consumers in the US have to endure fewer protections for and more restrictions on cell-phone buyers than in the EU. Unlocked (no-contract) cell phones are therefore generally cheaper and more widely available in Europe than in the US. But now the iPhone is an exception to that rule. An unlocked iPhone bought in the US is much cheaper than one purchased in Europe. (This is one reason the US online Apple Store will not ship iPhones outside the US.)

Below you can read about buying an iPhone (locked or not) that is ready for Europe. If you already have an iPhone bought in the US, see our advice for tourists and expats in Part 2.

Do you still need to buy an iPhone?
Then just continue to read the information on this page.
Do you already have an iPhone?
Then go to this page: Taking an iPhone to Germany

Buying an iPhone in Germany or the USA

For North Americans going to Europe for a long-term stay, buying an iPhone in Europe (with or without a contract) used to be the best way to go. Now that unlocked iPhones are available from Apple in the US, that is no longer the case. (If you don’t want an iPhone, there are many other options. See our main cell phone page for more.) If you compare iPhone prices in the US versus Germany and Europe, there are some dramatic differences.

iPhone Sticker Shock?
Americans who are used to buying subsidized cell phones with a contract are often surprised to discover the true price of the mobile phone they are using, whether or not it’s an iPhone. Few cell phone users ever bother to calculate the true cost of the typical two-year phone contract (but we will do just that below).

So when they see that the price of the 16 GB iPhone without a contract is $649, they may be shocked. But if you consider what consumers really pay for a 16 GB $199 iPhone with a two-year contract, you’ll discover the true cost of that phone is more than that of the $649 unlocked phone. Look at the box below…

Note: Although the comparison below is for the older iPhone 4, the comparison also applies for the current iPhone 5 and the iPhone 4S.

True Cost of a Two-Year Contract iPhone 4 with AT&T
ITEM TOTAL COST
16 GB iPhone 4 (black or white) $199.00
Lowest cost data plan @ $15.00/mo $360.00
Lowest cost calling plan @ $39.99/mo $959.76
TOTAL TWO-YEAR COST: $1,319.76
  Source: AT&T Wireless

The costs above are calculated using the lowest AT&T rate plans for the iPhone 4. (A data plan is mandatory.) If you opt for other plans with more minutes and data, your costs would be even higher. True, even with a contract-free iPhone, you would have to pay for calls and data, but figuring that about half of the costs above are used by AT&T to subsidize your phone (and they don’t pay retail!), you’re paying about $660.00 for that $199.00 iPhone (versus $649 unlocked). Note: The new iPhone 5 has similar pricing and there are also 32 and 64 GB versions. See Apple’s iPhone tech specs (with pricing). NOTE: As of 30 November 2012, the iPhone 5 is available unlocked in the US (after a two-month delay), starting at $649 for the 16 GB model.

In truth, if you will be using your iPhone mostly in the US, there is not much advantage in buying an unlocked iPhone. But if you’re going to be using your iPhone frequently in Germany, Europe or most of the rest of the world, then buying an unlocked iPhone makes a lot of sense. You can avoid high roaming charges by using various local prepaid plans. You simply insert a new micro-SIM card into your iPhone. (The iPhone’s micro-SIM card slot is at the top of the phone next to the earphone jack. You open it by inserting the end of an unfolded paperclip into the small hole next to the slot. The iPhone 5 uses an even smaller “nano-SIM card.”) Even in the US, an unlocked iPhone gives you options you just don’t have with a two-year contract.

It should also be noted that options in the US for future iPhone pre-paid and other plans are unknown, and those could be advantageous later. We could eventually have a more European-like range of mobile phone options in the US, but for the moment that is unclear.

One thing is very clear: If you want to buy an unlocked iPhone, buy it in the US! You’ll save a lot of money. In most cases, the cost of an unlocked iPhone bought in Europe (even adjusting for VAT/sales tax) is at least $200 more expensive than one acquired in the US. An unlocked iPhone 4S now costs $549 from Apple in the US. The unlocked price in Germany is 579 euros (about $750 USD).

Let’s compare…

Cost of an Unlocked iPhone • USA vs Germany
USA GERMANY
16 GB iPhone 4: $649 16 GB iPhone 4: $894*
32 GB iPhone 4: $749 32 GB iPhone 4: $1,051*
*Converted from euros (€629/€739, 16 June 2011), includes VAT
Sources: Apple USA, Apple Germany

Wow! The 16 GB iPhone is $245 cheaper in the US than in Germany, and the 32 GB model is $302 less expensive! Even allowing for sales tax (depends on where in the US you buy your iPhone), the US phone is hundreds of dollars cheaper than the same phone from the Apple Store in Germany. Partly, this is because the price in euros is almost the same as the dollar price, even though, as I write this, one euro equals about $1.30 (but the euro goes up and down against the dollar). The 16 GB iPhone 4 is 629 euros in Germany, compared to $649 USD in the US. The 32 GB version is 739 euros ($960) and $749. The euro prices include Germany's 19 percent VAT, while the US prices do not include any possible sales tax.

Bottom line: If you want an iPhone to use in Germany and/or Europe, buy the unlocked GSM version in the United States if you can!

NOTE: The new iPhone 5 and the 4S are compatible with both CDMA (Verizon, Sprint) and GSM (AT&T, T-Mobile) networks. That means you can buy an iPhone 5 or 4S from either Verizon, Sprint or AT&T that will work in Europe. Verizon’s old CDMA iPhone 4 will NOT work in Europe. Get the newer iPhone 5 or 4S! An unlocked 16GB iPhone 5 costs $649 in the US. An unlocked iPhone 5 in Germany starts at 679 euros ($883 USD!). However, an unlocked iPhone 5 or 4S bought from Apple will not work with CDMA-based carriers such as Verizon Wireless or Sprint in the US. (Not a problem in Europe, which is GSM only.)

Buying an iPhone in Germany

Okay, you are in Europe and you don’t have the option of buying an iPhone in the US right now. Or you have an iPhone already in Germany. Here’s what you need to know…

T-Mobile, O2 or Vodafone
In Germany the exclusive iPhone provider was T-Mobile, a German company (a division of Deutsche Telekom), but they no longer have that monopoly. Not only that, but in Germany now you can also buy an unlocked iPhone from O2, one of the three German telecom iPhone sellers. T-Mobile and Vodafone offer the iPhone with a monthly plan. Apple Germany now also sells iPhones without a contract. More below.

NOTE: We are not responsible for the content of external websites that we link to.

Buying an iPhone from an Apple Store in Germany
As in the US now, Apple in Germany also sells the iPhone unlocked. (The unlocked version can only be purchased online from the German or Austrian Apple Stores.) As of November 2012, there are 10 retail Apple Stores open for business in Germany. Besides the German online Apple Store, there are Apple outlets in Augsburg, Cologne, Dresden, Frankfurt am Main (2), Hamburg (2), Munich, Oberhausen and Sindelfingen (Stuttgart area).

Berlin Gerüchte: There have been rumors of a new Apple retail store in Berlin for years. Then some mysterious construction on the Ku-Damm (Kurfürstendamm 26) in 2011 led to more speculation, but still no store. Why the German capital city still has no official Apple Store is beyond me, but apparently the Berlin store – still under construction! – is now accepting job applications. Most observers predicted a Berlin grand opening in the summer of 2012, but as the year drew to a close, there was still no Apple Store open in Berlin. Of Apple’s 300+ retail stores worldwide, only a piddling 10 are in Germany, a country of 82 million people. If it ever opens, Berlin would have the 11th Apple Store in Germany, although the new Hannover store could also take that honor.

The BER Comparison
Some people have begun comparing the illusive Berlin Apple Store to BER, Berlin’s much delayed new airport. After earlier setbacks, at long last BER was officially scheduled to open in June 2011. But only weeks before that date, it was announced that the BER opening would again be delayed by several months. Then the “official” opening date was set for March 2013, a delay of almost two years! And many doubt even that late date! The Apple “BER” Store has been under construction since 2011, and no opening date has even been announced.

There may be no official Apple Store retail location in Berlin yet, but there are at least three Apple Premium Resellers currently in Berlin: Gravis (2 stores) and the mStore (Spandau). For information and links about the current German and Swiss Apple retail stores, see the list on the right (above). In late 2012, rumors of a new store in Potsdam (near Berlin) surfaced, but Apple has not given any signs of that.

For more about the iPhone and future Apple Stores in Europe, Germany and worldwide, see this blog and the links below: ifoapplestore.com (“news and information about Apple Inc.’s retail stores”).

From ifun.de (Apple news in German):

From macnews.de (giga.de, Apple news in German):

Germany rumors from ifoapplestore.com:

From macerkopf.de (all in German):

The 3G Store Shuts Down – and Reopens!
Nach dem “Goodbye” vom 31. Juli ist der 3Gstore.de zurück. In July 2011, the German unlocked-iPhone pioneer, the 3G Store announced that it was was closing its Bochum retail store and its online store. But now it has reopened under new management. Apparently, 3G Store founder Randolf Jorberg found a new owner for his 3Gstore.de domain. It had closed its Berlin retail store before closing down. See the link below for more:

NOTE: We are not responsible for the content of external websites that we link to.

Buying a Refurbished iPhone in Germany
If you’d like to save 20 percent or more off the normal price of an iPhone in Germany, consider buying a refurbished iPhone. T-Mobile’s online store and O2 both offer previously-owned iPhone deals, but only the online O2 Outlet sells an unlocked version. The refurbished phones are models that customers have returned and have then been checked, certified and prepared for resale. O2 and T-Mobile offer a one-year guarantee for refurbished iPhones. T-Mobile also offers a 10 percent discount off the first 12 months of your service plan. Check with the providers for current pricing and warranties.

Converting a US iPhone to a German Rate Plan
If you are an expat in Austria, Germany or Switzerland who has managed to convert an AT&T iPhone plan to a T-Mobile Germany, O2 or Vodafone plan, I’d love to hear from you: Contact me.

NEXT > Taking an iPhone to Germany

MORE > Cell Phones in Germany

Google’s Android Phones

Nexus One phone
Google’s Nexus One cell phone was billed as an “iPhone killer.” Is it really? See below...
In January 2010, Google began marketing its then new Nexus One (Android) cell phone in the US. European versions soon followed.


Clearly intended to beat or at least meet the iPhone, the Nexus One had many similar features, plus a few that the original iPhone didn’t have (such as an LED flash for the camera). But the Nexus One roll-out was a bit rocky to say the least. Early reviews for the Nexus One were generally favorable, but many of the features touted by Google for its Android phone were missing or functioning poorly. There were many complaints about poor customer support (or none at all), dropped calls, and other problems. All support services (if you can call it that) came from a Google website. There was no phone support at all. Google seems to have not thought out its Nexus marketing and support very well. It was a big contrast to Apple.

Unlike the iPhone at that time, the Nexus One phone was available unlocked in the US for a higher price ($529). The T-Mobile contract version cost $179 or less. In the UK, France, Germany and other parts of the world, the Nexus One runs on the Vodafone network, one of Europe’s largest.

Now there are many Android smartphones from HTC, LG, Motorola, Samsung, and many other makers aimed at would-be iPhone users.

NEXT > Taking an iPhone to Germany

MORE > Cell Phones in Germany

MORE > Cell Phone/GSM Glossary

Germany > Topic Index > Cell Phones 1 | Cell Phones 2 >
   iPhone - Part 1 | iPhone - Part 2 > Cell Phone Glossary

Web content © 1997-2012 Hyde Flippo

Related Pages

This Site

  • “Handy” Cell Phone Tips - Useful advice for using a wireless phone in North America and Germany / Europe – and saving money.
  • “Handy” Cell Phone Tips - Part 2 - First-hand tips on using a wireless phone in North America and Germany / Europe
  • GPS Navigation - Rent a GPS system to guide you through Germany and Europe.
  • Internet and Modem Tips - What you need to know before you plug your US modem into a German phone jack.
  • Telephone Tips - Do you know how to use a German coin or credit card phone?
  • Electrical Tips - Some shocking facts about electrical appliances in Austria, Germany, and Switzerland.
  • The Germans, Deutsche Telekom, and stocks - Was it a good idea to buy DT shares when they were first offered back in 1996? Now?
  • Expat Page - Advice and links for expats in German Europe.
  • Hedy Lamarr - The Austrian actress was the co-inventor of “frequency hopping”—a technology that later became known as spread spectrum, a technology adapted for cell phones.

The Web

  • GSM - Wikipedia - About the GSM mobile system used by 80 percent of the world's mobile phone users
  • Full List of GSM Countries - with coverage maps, plus non-GSM countries such as Japan and Korea (from mobileworldlive.com)

NEXT > Taking an iPhone to Germany

MORE > Cell Phones in Germany

MORE > Cell Phone/GSM Glossary

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Hyde Flippo is solely responsible for the content of this site and, other than permission granted to publish copyrighted material, McGraw-Hill/Contemporary Publishing has no direct involvement, financial or otherwise, with this site. When in Germany, Do As the Germans ©2002 McGraw-Hill; The German Way ©1997 McGraw-Hill/Passport Books. All rights reserved | Site Map | Privacy Policy | Advertise with us!