Some British newspapers are reporting that O2 is bound to get the iPhone distribution contract for the United Kingdom.
There is no official confirmation yet, but nonetheless Vodafone shares are going down. Reportedly, Apple will also get a piece of O2's revenue, just as they did in their AT&T deal.
Reports that Vodafone will lose the German deal surfaced a few days ago, and T Mobile seems to be Apple's partner of choice in that country. If these latest reports are right Vodafone is pretty much out of the whole iPhone saga. How this came about is anyone's guess.