With Apple, Inc. (NASDAQ: AAPL)'s iPhone setting the stage to become a phenomenon in Europe like it has in the U.S., some minor glitches are starting to unravel in the company's plans there. This week, a German court wanted T-Mobile (part of Deutsche Telekom AG) to change the way it markets the iPhone. Unlike in the U.S. -- where Apple and AT&T have a five-year exclusive partnership -- things aren't that easy in the world of European "open market" wireless.

In other words, the German court doesn't want T-Mobile to sell the iPhone only in conjunction with a two-year service contract (the same deal AT&T gives U.S. iPhone customers). The court, in addition to that rather-large order, also asked that the T-Mobile version of the iPhone be opened up so it can work with other wireless providers. Ouch!

European wireless giant Vodafone is most likely to blame here, as it had a gripe with T-Mobile's marketing plans.
T-Mobile says that it reserves the right to claim damages from any moves Vodafone makes that would impede iPhone sales, but this is just the beginning. Apple's tight grip on revenue sharing from each mobile partner it signs a contract with may not fly in some parts of the world -- something Apple should know by now. But that's the power the iPhone has -- wireless carriers will do anything to offer it to customers.

MOST NOTEWORTHY: BHP Billiton (BHP), Applied Materials, Inc (AMAT), Advanced Micro Devices (AMD) and Oracle Corp (ORCL) were some of today's noteworthy upgrades:

• Prudential upgraded shares of BHP Billiton (NYSE: BHP) to Neutral from Underweight with a $50 target to reflect capacity expansion in uranium mining and increasing demand for iron ore from China.
• Bank of America upgraded Applied Materials Inc (NASDAQ: AMAT) to Buy from Neutral with a $25 target as the firm believes the company's solar power equipment market is accelerating faster than estimates and guidance.
• Advanced Micro Devices Inc (NYSE: AMD) was upgraded to Neutral from Reduce at UBS citing limited downside to the shares.
• Oracle Corp (NASDAQ: ORCL) was upgraded to Buy from Neutral at Goldman Sachs, where its coverage was transferred to another analyst.

OTHER UPGRADES:

• Credit Suisse added Rite Aid Corp (NYSE: RAD) to its U.S. Focus List.
• Morgan Stanley upgraded O2Micro International Ltd (NADAQ: OIIM) to Overweight from Equal-Weight based on the company's announcement of a settlement with Samsung.
• Wachovia added Lehman Brothers Holdings (NYSE: LEH) to its Focus List. Due to Lehman's record banking fee backlog of $1.03 billion in Q1, the firm believes their banking estimate is "quite conservative."
• Continental Airlines, Inc (NYSE: CAL) was upgraded to Buy from Neutral at FTN Midwest citing the surprisingly strong March unit revenue growth for the upgrade.
• Bear Stearns upgraded Vodafone PLC (NYSE: VOD) to Peer Perform from Underperform.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: ConocoPhillips (COP) and Starbucks (SBUX) were two notable companies on the upgrade list today:

• Deutsche Bank upgraded ConocoPhillips (NYSE:COP) to Buy from Hold with an $80 target, citing expectations for a reduction in spending and a shift towards share buybacks; additionally,
• Starbucks Corp. (NASDAQ:SBUX) was upgraded to Buy from Neutral with a $42 target at UBS, citing valuation.

OTHER UPGRADES:

• Wachovia upgraded the Healthcare REIT Sector to Market Weight from Underweight, citing decreasing interest rate trends and more positive trends of individual stocks in the sector.
• RBC Capital Markets upgraded Blue Nile Inc. (NASDAQ:NILE) to Outperform from Sector Perform with a $40 target, citing benign trends on both diamond and keyword pricing, efficiencies in marketing, share buybacks and valuation.
• Goldman Sachs upgraded Vodaphone PLC (NYSE:VOD) to Buy from Neutral on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Notable companies that were upgraded today included Taiwan Semiconductor (TSM) and the Nasdaq Stock Market (NDAQ).

• Following an inventory correction from 3Q06 to 1Q07, Bear Stearns upgraded Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) to Outperform from Peer Perform, citing expectations of the semiconductor cycle to accelerate in the second-half of 2007.
• The Nasdaq Stock Market Inc. (NASDAQ:NDAQ)was added to Friedman Billing's Top Pick list, citing an attractive valuation following Friday's sell-off in addition to the company's strategic position.

OTHER UPGRADES:

• Credit Suisse upgraded Vodaphone (NYSE:VOD) to Outperform from Neutral; the firm believes Vodaphone's European mobile division should top expectations in the second quarter.
• Rodman & Renshaw upgraded shares of Gilead Sciences Inc. (NASDAQ:GILD) to Outperform from Market Perform, as they believe the company is poised to benefit from the recent CDC recommendation for routine HIV-testing in all individuals in the U.S. between the ages of 13-64 with a voluntary opt-out policy.
• A.G. Edwards upgraded Altera Corp. (NASDAQ:ALTR) to Buy from Hold following the resolution of the company's stock option issues. Pacific Crest upgraded Altera to Outperform from Sector Perform. They believe Altera is tracking inline with the midpoint of its guidance and that seasonal growth will return in the first quarter.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).