RBC Raises Sales Outlook as the iPhone Takes Europe by Storm

Apple Inc.’s (AAPL) iPhone has taken over the European continent by storm, says RBC Capital Markets analyst Mike Abramsky.

The massively popular mobile device has been selling more than expected, the analyst says in a research note, despite the fact several of its features are already outdated by other phone models in Europe.

iPhone subscriptions in the U.K., Germany, and France are all doing strong business and are outselling competitors smartphones, including the Nokia N95 and E-Series, Samsung BlackJack and LG Prada. More than 4 million iPhones should move off European shelves by the end of next year.

The boom in iPhone sales will undoubtedly create a “Halo effect” to spur off growth in European Mac sales, adds Mr. Abramsky.

Mr. Abramsky wrote that,

Just like iPod growth/penetration (65% share) aided North American Mac growth, in phone-centric Europe and International, we see the launch and publicity of the iPhone aiding Mac awareness and assisting subsequent market share gains.

Although there’s still no word when the iPhone will be released in Canada, the device should be launched in the first quarter of 2008 along with launches in Italy and Spain.

In light of the success across the pond, Mr. Abramsky is raising his iPhone sales outlook to 12.5 million units at the end of 2008. RBC Capital Markets currently has an “outperform” rating on Apple with a price target of $205.