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iPhone sales in Q2 2008 … Yikes (and the wrong kind of yikes at that)

Am I reading this right?

In June – December 2007, Apple sold 4 million iPhones.

In Q1 2008, Apple said it sold 1.7 million iPhones.

During yesterday's WWDC keynote address (fast forward to 1:23:56), Apple CEO Steve Jobs said, "in this first year, we have sold 6 million iPhones .. till we ran out some number of weeks ago." He then motioned at the chart shown below:

"Six million iPhones. Now we're pretty thrilled with this."

Are they though? Really?

If my math is correct, Apple sold just 300,000 iPhones during the entire second quarter of 2008. Yeah, I get that demand was somewhat offset by rumors of a hardware update, but come on. Not everyone is on the cusp of tech news like you guys.

This, I think, nicely explains Apple's aggressive iPhone strategy and pricing moves: iPhone sales were falling through the floor. We expect that to reverse itself and then some.

Published Jun 10 2008, 01:00 PM by pthurrott
Filed under: , ,

Comments

 

MLomasIcomm said:

Er, do remember that /availability/ of the iPhone also went through the floor - Here in the UK, the iphone has simply not been available for quite a while - as I understand it the picture was similar for the US.

June 10, 2008 11:24 AM
 

daProject said:

6m up to May 2008.  So 2/3rds of the quarter, not the entire quarter.

June 10, 2008 11:28 AM
 

Snakedoctor1 said:

Umm this is old news right, like two weeks ago.  

Also combined with the rumors of a new iPhone from the day the announced Exchange support and the SDK, in March??, there has been news stories about shortages here and there for about 6 weeks.

The combination of the two pretty much sums it up.  Lets see how things are going at the end of September.

June 10, 2008 11:51 AM
 

pthurrott said:

Snakedoctor: Didn't Apple just announce the 6m figure yesterday? Seems new to me.

But like I said, the combo of price cuts and feature adds should make all the difference in the world.

June 10, 2008 12:08 PM
 

Ocean said:

What the above said.  Plus it's a consumer device.  It's big sales were in December...

June 10, 2008 12:22 PM
 

BrightrevCarl said:

@Paul

Agreed.  Apple was running out of people who would pay $400 for a phone, no matter how cool it was.  

The new iPhone basically costs the same as it did before.  You only pay $200 up front, but you pay (at least) $10 more per month in data fees, which is $240 over two years.  Of course, no one ever considers subscription fees, so the perception is that it's more affordable.

I don't mean that as an argument against the iPhone.  I think the thing is absolutely amazing and worth every penny.  Unless you need a hardware keyboard, it completely blows everything else on the market out of the water.  But it actually *isn't* less expensive.  That won't stop Apple from selling millions and millions of iPhones.  My guess is that as long as they can make them fast enough, Apple will sell more than 10 million by the end of the year.

June 10, 2008 12:41 PM
 

johnpapola said:

um...  the second quarter started in April.  The iphone stock completely ran out weeks ago.  Sure, they were saturating the AT&T userbase willing to pay $400... but this isn't ominous new.  It's pretty obvious.  And they were ready to address it, and have, with the price cut.  Nothing to see here.  Basic business.  Had Apple released the phone at $199, they would have left a ton of money on the table.  You can always lower prices.  Raising them to maximize profit is much harder.

June 10, 2008 1:37 PM
 

hhorton said:

I want one, but not with the AT&T network and not by hacking it to work on other networks.

I'll get it when I can use it on any network. It will be about the third or fourth generation by then and really be an incredible device.

So I think there are a lot of people like me and watch what happens in year 6...

June 10, 2008 1:52 PM
 

DRWAM said:

The chart looks like it agrees with Paul's calculation. We do know that they have not been selling online for a while,and many knew of the update, but still, that's a tiny amount of sales. I am sure that it will pick up with all the new markets/countries, but BrightrevCarl points out that after the new contract, it actually costs $40 more over two years, and even more if longer. That's a little disappointing. Look, I can afford to buy many phones, but the average Joe will sink more many into a phone bill for the latest and greatest, when the economy is at a low point. At least I can afford it.

How does the new contract compare to similar ATT non-iPhone contracts? How about Verizon? Verizon bundled services save some money for people, so it's a shame that the iPhone isn't part of it. But then again, it probably would have had it's own special pricing if it was.

If any if you need a loan shark, let me know. I'm Sicilian.

June 10, 2008 2:00 PM
 

subzerohitman721 said:

With every cellular provider now capping data plans on "unlimited" services across the board, I'm not surprised to see that AT&T is raising the price. Capture people on the wow factor and hope they are desperate enough to sign the contract. And frankly, they will sadly. Frankly, all the cell phone companies are equally notorious, but I don't see how this reflects on Apple. I believe they have about as much influence on AT&T pricing here as the U.S. goverment on oil prices.

I just know how AT&T will justify it. Anticipating the huge influx of new users taxing their network, they'll need the increase revenue to augment maintenance and upkeep. Justifiable to a point, but considering how Japan and South Korea internet infrastructure is faster, greater capacity, and probably more affordable for their citizens. U.S. greed is notorious considering that the average U.S. CEO makes 400% more than the average citizen, while the rest of the world is 10 to 15%.

It burns me as a consumer, because they know middle class citizens cannot afford these increases. Wages have been stagnant for 6 years, with the 2nd part of a minimum wage increase do soon. But its now where near sufficient to the over 30% increases in food and energy prices.

I have to agree with Senator *** Durbin (D) from Illinois.... "Where is the corporate conscience?" Trust me, this one should go to every company at this point in the game.

June 10, 2008 2:34 PM
 

Snakedoctor1 said:

community.winsupersite.com/.../iphone-loses-us-market-share-in-q1-2008-the-real-story.aspx

The Q1 numbers are old news, and the same speculation for those numbers was brought up by you on 5/31

Yes the 6m number was new yesterday.

June 10, 2008 2:59 PM
 

Snakedoctor1 said:

I dont think the data plan is any different (from ATT) for other 3G PDA phones, not WM smartphones but the full fledge WM phone, the HTC ones.

June 10, 2008 3:21 PM
 

doon120 said:

I like Apple stuff, I really do but el Jobso has been knowen to stretch a point to sell his stuff.  So here's my take on "Six millions sold": got those receipts handy?

Meanwhile, I told my wife a year ago "buy the 2.0 version". looks like i'll be on board

June 10, 2008 5:26 PM
 

iPhone Sales Predictions: 14m in 2008… 24m in 2009?! | The iPhone Blog said:

Pingback from  iPhone Sales Predictions: 14m in 2008… 24m in 2009?! | The iPhone Blog

June 18, 2008 6:55 AM
 

iPhoneKing » iPhone Sales Predictions: 14m in 2008??? 24m in 2009?! said:

Pingback from  iPhoneKing    » iPhone Sales Predictions: 14m in 2008??? 24m in 2009?!

June 18, 2008 12:49 PM
 

iPhone Sales Predictions: 14m in 2008??? 24m in 2009?! | BigInfo.org said:

Pingback from  iPhone Sales Predictions: 14m in 2008??? 24m in 2009?! | BigInfo.org

June 22, 2008 11:17 PM

About pthurrott

Paul Thurrott is the guy behind the SuperSite for Windows. Way behind. :)
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