One of the major obstacles to the introduction of the iPhone in Israel has apparently been solved. Sources inform ''Globes'' that iPhone franchisee iDigital Ltd. plans to open a laboratory to repair broken iPhones for Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Pelephone Communications Ltd.. Setting up the laboratory and hiring and training technicians for it is expected to delay the launch of the iPhone in Israel for a while. It was supposed to be launched at the end of August.
The latest development was the result of a dispute between iPhone maker Apple Inc. (Nasdaq: AAPL) and the Israeli operators over the location of the repair laboratory. Apple wanted to send broken iPhones to Ireland, while the Israeli operators tried to persuade it to have the repairs handled at their own laboratories in the same way that they repair handsets of other manufacturers, such as Nokia, Samsung, and Sony Ericsson.
One possible problem of sending iPhones to Ireland for repairs is that if they cannot be repaired, a replacement iPhone would have to be sent to Israel, which would involve payment of the purchase tax on it. This payment would probably be rolled onto the cellular operators, which would have to bear the cost.
iDigital declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on September 2, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009