Apple forecasted to sell a half-million iPhones 3G S's this weekend
Apple, which will launch its new iPhone 3G S handset in eight countries on Friday, is expected to sell half a million of the devices before the weekend is over and sales of the $99 iPhone 3G model are tallied into the mix.
The forecast comes by way of Piper Jaffray analyst Gene Munster, who notes the half-million mark would compare to sales of 1 million iPhone 3G handsets during its inaugural weekend last July, and 270,000 original iPhones back in June of 2007.
"Several factors lead us to believe Apple will sell less iPhone 3G S's at launch than it did for the iPhone 3G including a less Â*dramatic change in value proposition and fewer available countries at Â*launch," Munster wrote in a research note Thursday.
More specifically, the analyst points out that the launch of the iPhone 3G last year came alongside a 50% price reduction from the original models, which drove sharp increases in demand.
With most customers being able to purchase the new iPhone 3G S at identical pricing, the change in value proposition for the new model is therefore not as meaningful as last year, he said, which should likely translate to fewer units sold at launch.
In supporting his lower unit sales estimates for launch weekend, Munster also noted that the iPhone 3G S is launching in just 8 countries this weekend compared to the 21 countries that were able to launch the iPhone 3G on its first weekend last year.
"The iPhone 3G S launch and the price reduction on the iPhone 3G leave us increasingly confident in our 5 million iPhone unit estimate for the June quarter," the analyst told clients. "Our estimate includes 3.0 million iPhones in the month of June, approximately 500k 3G S units in the back half of the month and the remaining 2.5m iPhone 3G units through the entire month."
For the September quarter, Munster expects Apple to sell roughly 7 million iPhones combined. He maintained his Buy rating and $180 price target on shares of the Cupertino-based company.
The forecast comes by way of Piper Jaffray analyst Gene Munster, who notes the half-million mark would compare to sales of 1 million iPhone 3G handsets during its inaugural weekend last July, and 270,000 original iPhones back in June of 2007.
"Several factors lead us to believe Apple will sell less iPhone 3G S's at launch than it did for the iPhone 3G including a less Â*dramatic change in value proposition and fewer available countries at Â*launch," Munster wrote in a research note Thursday.
More specifically, the analyst points out that the launch of the iPhone 3G last year came alongside a 50% price reduction from the original models, which drove sharp increases in demand.
With most customers being able to purchase the new iPhone 3G S at identical pricing, the change in value proposition for the new model is therefore not as meaningful as last year, he said, which should likely translate to fewer units sold at launch.
In supporting his lower unit sales estimates for launch weekend, Munster also noted that the iPhone 3G S is launching in just 8 countries this weekend compared to the 21 countries that were able to launch the iPhone 3G on its first weekend last year.
"The iPhone 3G S launch and the price reduction on the iPhone 3G leave us increasingly confident in our 5 million iPhone unit estimate for the June quarter," the analyst told clients. "Our estimate includes 3.0 million iPhones in the month of June, approximately 500k 3G S units in the back half of the month and the remaining 2.5m iPhone 3G units through the entire month."
For the September quarter, Munster expects Apple to sell roughly 7 million iPhones combined. He maintained his Buy rating and $180 price target on shares of the Cupertino-based company.
Comments
My bid is 300K.
Shorter line for me, then!
Don't go the the Waterloo shop!
Just got to get it by my accountant wife.
If anyone reading this can post their average monthly bill (minus purchases) I would appreciate it.
thanks
I might get one, after reviews/bugs etc.
Just got to get it by my accountant wife.
If anyone reading this can post their average monthly bill (minus purchases) I would appreciate it.
thanks
Really? What bugs were there in the 3G release, (other than the activation fiasco, which was not a bug in the phone)
I might get one, after reviews/bugs etc.
Just got to get it by my accountant wife.
If anyone reading this can post their average monthly bill (minus purchases) I would appreciate it.
thanks
In Canadian dollars
Factoring in that the iPhone is my only phone, it's loaded with ALL services offered by Rogers, plus the data plan, plus the long-distance package, my monthly bill comes out to between $100-$120/month.
Not cheap, but I get enough out of my iPhone to warrant it. For now.
Really? What bugs were there in the 3G release, (other than the activation fiasco, which was not a bug in the phone)
How many times has this bveen addressed already?
The phone connection itself.
Thank you AT&T.
"Our estimate includes 3.0 million iPhones in the month of June, approximately 500k 3G S units in the back half of the month and the remaining 2.5m iPhone 3G units through the entire month."
Every single review I've seen says just pony up the $100 for the s since the monthly cost is the same and you get twice the storage. No way they sell that many 3G's if they are only selling 500k 3Gs'...
My wife and I have 30 GB iPods that are over half full. We've been waiting since the first iPhone for a 32 GB version to come out. Now if AT&T could lower the cost of their plans to something more reasonable we might actually sign up.
Price drops, and you'd buy! Radical. I wonder if anyone else might do the same.....
How many times has this bveen addressed already?
The phone connection itself.
Thank you AT&T.
How many times has this been addressed? DOESN'T affect all users.
I've never had a problem with AT&T service in 2 whole years.
being able to purchase the new iPhone 3G S at identical pricing, the change in value proposition for the new model is therefore not as meaningful as last year, he said, which should likely translate to fewer units sold at launch.
completely inaccurate. The reason fewer will turn out this year is BECAUSE 1 million+ turned out LAST year. Not all of these people are ready/eligible/prepared to upgrade.
To say it is not as high of a value proposition, is absolutely absurd. The 3GS is easily 5X the upgrade that the 3G was to the 2G.
How many times has this been addressed? DOESN'T affect all users.
I've never had a problem with AT&T service in 2 whole years.
Dude- just because ur not affected doesn't mean it doesn't exist. It's only been mentioned in about every review for the last two years that the calls in the US are mediocre. Go toast yourself with a glass of champagne that ur not affected. Give it up already!
completely inaccurate. The reason fewer will turn out this year is BECAUSE 1 million+ turned out LAST year. Not all of these people are ready/eligible/prepared to upgrade.
To say it is not as high of a value proposition, is absolutely absurd. The 3GS is easily 5X the upgrade that the 3G was to the 2G.
I don't know about 5x but at least 2x but then again if you only use your phone for casual surfing, simple games at most and don't use it as a camera I see no reason to upgrade from 3G to 3Gs. Now I have a 2G and will be upgrading to the 3Gs so that should be nice and I'm in DFW so hopefully I'll be able to get those higher speeds sometime this year since, ya know, AT&T is now HQ'd in Dallas
Dude- just because your not affected doesn't mean it doesn't exist. It's only been mentioned in about every review for the last two years. Go toast yourself with a glass of champagne that your not affected. Give it up already!
grammar police - if you're going to italicize something at least make sure it's correct... (you're, twice) And most people aren't affected but the ones that are are very loud about it (you for example)
This guy really thinks Apple is going to sell 2.5 million 3G's but only 500k 3Gs'?
Every single review I've seen says just pony up the $100 for the s since the monthly cost is the same and you get twice the storage. No way they sell that many 3G's if they are only selling 500k 3Gs'...
Its nice to see people get all hyper on analyst estimates.