Apple and Vodafone in final stages of working out iPhone exclusivity deal for European release?

The iPhone launch in Europe is part rumor, part speculation, and a whole lotta anticipation. Apple will be releasing the iPhone in Europe, it’s just a question of when and with which carriers.

Sources close to the situation (we love when reports start off like that) are saying that Apple and Vodafone are in the final stages of hammering out a deal to bring the iPhone to Europe. The source expects an official iPhone announcement in the coming weeks, but only after Apple and Vodafone see eye to eye on a couple of issues.

It seems that Vodafone may not be as willing to bend to Apple’s will as AT&T was - says Gartner Inc. analyst, Ken Dulaney, “We don’t think they want to give up that much control.”

Vodafone’s demands:

• Vodafone wants the YouTube application to work more like the web-based version (could a Flash update be on the way?)
• Make the iPhone sync calendar and email
• Better security and firewalls
• A re-worked and simplified WiFi security process
• And the sought-after “cut and paste” feature in the iPhone’s Safari browser

Now that Vodafone and Apple are actually getting down to the nitty-gritty negotiations, we’re just gonna sit back and wait for the iPhone to launch in Europe. Just kidding, we’ll keep you updated, as always.

[Via: Unstrung]