No iTunes for you, Israeli consumer

Israelis may be able to get iPhones, but they can't have any iTunes. For now, the online music and video store won't be opening its virtual doors to Israeli consumers despite the local iPhone launch, TheMarker has learned.

Apple plans to leave iTunes inaccessible to Israelis during the first year it sells iPhones in Israel, and probably during the second year as well.

Tens of thousands of Israelis have imported their own iPhones personally. The official launch is planned for October.

iTunes is considered the world leader in selling music and content for cellular uses. It's responsible for no small part of Apple's total income from iPhones and iPods.

According to a study by market research company NPD Group, published in the U.S. last month, in 2009 iTunes was responsible for 25% of all online music sales in the U.S. (Second place was Wal-Mart's online store.)

iTunes offers more than 10 million items of content for sale, including songs, games, movies and television shows, some of which are HD (high definition in viewing quality).

The snag is that consumers can only buy from iTunes using American credit cards. In other countries where Apple opened its iTunes to the general public, it accepts only credit cards from local banks.

Opening iTunes stores in another country is complicated. It involves entering into complex copyright agreements with Apple, and arranging payment mechanisms. Apple made no such preparations ahead of its Israel launch of iPhone.

But despair not, iPhone aficionados. Your Israeli cellular service provider has an online music store too. (All of them do.) You can download to your iPhone, at a cost of NIS 4 to NIS 5 per song. Partner Communications for one offers a package of songs for NIS 30.

The cellular companies declined to comment for this report.