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As the Google/Android PR machine geared into full swing for this week's launch, the iPhone's position as most successfully hyped handset was finally eclipsed, not just because of the novelty factor of the Android Dream, but also because of the rising tide of dissatisfaction with the Apple platform.

Much of this has come from developers (see separate item), but there are also qualms among some operators. Softbank in Japan is disappointed with the cellphone's uptake, while some exclusive carriers like the UK's O2 are struggling to meet their targets and may be turning away other valuable handsets. However, one carrier is full of praise for the iPhone's performance - T-Mobile says it has given business a good boost in Germany, even though, across the Atlantic, the AT&T exclusive has put pressure on the cellco's US arm, which is now stealing thunder by launching the first Android device.

René Obermann, CEO of T-Mobile's parent Deutsche Telekom, and himself previously head of the mobile arm, said in an interview last week: "We're happy with iPhone in Europe, not so happy with the iPhone in the US." He said 150,000 units of the Apple 3G phone have been sold in Germany since launch in July, out of a total of 250,000 for Europe, making Germany by far the largest market. The operator is keen on iPhone users as they spend more on "The UI and applications make a huge difference," said Obermann.

However, as global chief, he has a difficult line to draw when singing the iPhone's praises, as in the US T-Mobile needs to take it on head-to-head and talk up its competitive devices from HTC, Samsung, RIM and others, including the much vaunted Android handset, the Dream.

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