France Telecom and Apple are struggling to come to an agreement on the distribution of the U.S. group's iPhone in France, Challenges reported on Thursday on its website.

France Telecom, which trades mainly under the Orange brand, declined to comment.

The French weekly said without citing sources that Apple and France Telecom were at odds over the percentage of service revenues the telecom operator had to give to Apple as part of the distribution deal.

If the two groups fail to come to an agreement, the launch of the iPhone handset in France in time for the crucial Christmas season could be jeopardized, Challenges said.