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 (NSDQ: AAPL) 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 (NYSE: VOD) 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 (NYSE: 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]