Apple sells one millionth iPhone

[AppleInsider]

Apple said Monday that it sold its one millionth iPhone yesterday, just 74 days after its introduction on June 29.

“One million iPhones in 74 days -- it took almost two years to achieve this milestone with iPod,” said Apple chief executive Steve Jobs. “We can’t wait to get this revolutionary product into the hands of even more customers this holiday season.”

Apple, which slashed the price of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008.

[ View this article at AppleInsider.com ]

[Bergermeister]

Wow.

The future is in phones.

[alek_2]

Lets check the stock price at the end of the day...

[thom_y]

Originally Posted by AppleInsider

Apple said Monday that it sold its one millionth iPhone yesterday, just 74 days after its introduction on June 29.

I'd be curious, how many were bought by residents outside of the USA and how many are actually activated with AT&T. Wonder how many of those were subsequently unlocked and are being used with other SIM cards ?

PS: As soon as there is a viable software unlock (don't know about this iphonesimfree.com story), I will consider going to the US to buy a $399 phone and use in Canada on Rogers. Tired of waiting for ROgers and Apple to come up with a deal.

[Abster2core]

Originally Posted by AppleInsider

Apple, which slashed the cost of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008.

Should have read, "Apple, which slashed the price of the…

[didwaniap]

The hammered stock prices got the numbers out of them...

[dr_lha]

Originally Posted by thom_y

I'd be curious, how many were bought by residents outside of the USA and how many are actually activated with AT&T. Wonder how many of those were subsequently unlocked and are being used with other SIM cards ?

I'm going to take a wild guess here and guess that less than 1% of phones were bought for that purpose, maybe even less.

[melgross]

Originally Posted by dr_lha

I'm going to take a wild guess here and guess that less than 1% of phones were bought for that purpose, maybe even less.

No doubt.

Also, with these numbers coming out so close after the price drop, and there being a day or two to get the numbers resolved before they could report them, it proves that phone sales were on track.

While the drop sold more phones, I'd be willing to bet that the millionth would have been sold by the end of this week, or at the very latest, early next, even without the price drop.

[JakeTheRock]

Originally Posted by AppleInsider

it hopes to sell 10 million units by the end of 2008.

10 million in a year and a half? that seems like an awful lot...

[EruIthildur]

10 million phones? Sounds doable to me, especially if they go hit up other countries (just think, this was just the states' opening).

[waytogobuddy]

Originally Posted by thom_y

I'd be curious, how many were bought by residents outside of the USA and how many are actually activated with AT&T. Wonder how many of those were subsequently unlocked and are being used with other SIM cards ?

PS: As soon as there is a viable software unlock (don't know about this iphonesimfree.com story), I will consider going to the US to buy a $399 phone and use in Canada on Rogers. Tired of waiting for ROgers and Apple to come up with a deal.

Yep. If Rogers (or a 3G version from Telus!!) doesn't appear by Nov. $399USD it is.

[physguy]

Originally Posted by Abster2core

Should have read, "Apple, which slashed the price of the…

Huh???

This should remove any doubt that the price reduction was a positive reaction to a positive situation. The price cut could not have had ANY impact on selling 1 MILLION phones in 74 days. It was only in place for a couple of days.

Apple

1) Increased the manufacturing base for the iPhone with the introduction of the iPod Touch - same screen, same memory, same processors, etc..... This would have lowered their costs.

2) Apple wants to really smash into the market over the holiday season.

3) IF the new 3G phones are coming this positions the pricing much much better. Apple always seems to strive to rational pricing structures for its product line.

[plus]

Originally Posted by melgross

Also, with these numbers coming out so close after the price drop, and there being a day or two to get the numbers resolved before they could report them, it proves that phone sales were on track.

While the drop sold more phones, I'd be willing to bet that the millionth would have been sold by the end of this week, or at the very latest, early next, even without the price drop.

Yes, this announcement ought to firmly quash all the carping of the Apple cynics who were claiming that the big price cut was in any way reflective of iPhone sales problems!

Ought. And from the initial reaction in the stock price, maybe will. But the cynics seem to have amazing conviction behind their withered, twisted beliefs.

[anantksundaram]

This is truly impressive. $560 - $580 million in revenues in just 2.5 months. Assuming a free cash flow margin of ~20% (probably very conservative, since I am using end-2006 numbers for the company as a whole), that is an additional $110 - $115 million to the company's (true) bottom line in less than a quarter!

Wow.

[melgross]

Originally Posted by JakeTheRock

10 million in a year and a half? that seems like an awful lot...

Jake, It's too bad you haven't been around for all of the long discussions on this very matter.

10 million phones isn't far fetched.

Right now, Apple is only selling here, in the US, and for only one carrier. Before the end of the year, phones will be selling in Europe as well, and through several carriers. That will at least double the sales potential.

Next year, the phone will go on sale in Asia as well, again, likely with several carriers, raising the sales potential by at least an additional 33%, possibly more.

Therefore, sometime in early 2008, Apple should have at least double the sales potential, and possibly as much as 4 times the potential as now.

If Apple sells 3 million phones here by the end of the year, possibly a conservative number considering the holiday season, that would just leave another 7 million to sell throughout the entire 2008 year, with that 2 to 4 times sales potential.

That doesn't seem to be difficult to do.

Also, Apple, no doubt, has plans not just for the price cut we've seen, which will help to sell a lot more phones, but for other models as well. There is no way I can see Apple not coming out with new models within an 18 month period, and that will increase sales.

[physguy]

Originally Posted by plus

Yes, this announcement ought to firmly quash all the carping of the Apple cynics who were claiming that the big price cut was in any way reflective of iPhone sales problems!

Ought. And from the initial reaction in the stock price, maybe will. But the cynics seem to have amazing conviction behind their withered, twisted beliefs.

Keep in mind that the stock price is a very poor indicator at this time. It is highly likely being manipulated by various bloggers/traders with overhype and then failure. A good recent example is the 'reports' that went out that Apple has possibly sold 1,000,000 in the first weekend. These are now quoted to illustrate Apple's failure. Apple NEVER claimed this nor forecast it, and there were no facts to support such a contention.

Ignore the price for now. As long as Apple continues to execute like they have been, as long as they get Leopard out in the near future (just to build confidence as much as sales which I don't think it affect greatly) and if Apple can launch iPhone as successfully in Europe as they have in the US the $200+ target will happen. It will be very bumpy but those bumps will be buying opportunities if you have some spare cash.

[S10]

Originally Posted by alek_2

Lets check the stock price at the end of the day...

Can we please stop pretending to know anything about the stockmarket?

[vinney57]

Originally Posted by didwaniap

The hammered stock prices got the numbers out of them...

Don't be stupid. They can't control when the one million mark is reached and naturally they would announce it straight away. The day to day stock price is not really a concern for Apple management, nor should it be.

[anantksundaram]

Wow, if true, this could be HUGE for us Apple people...... (sorry for the long URL):

http://www.businessweek.com/technolo...ndex_top+story

[shetline]

With things like existing the service contracts that many potential iPhone buyers might have (quite likely with someone other than AT&T) and the need to make a new two year commitment with AT&T in order to use an iPhone (possibly having to switch carriers to do so), issues of signal coverage, etc., buying an iPhone is a lot more complicated that buying something like an iPod. All that makes selling a million iPhones so quickly all the more impressive.

[Constable Odo]

Originally Posted by physguy

Keep in mind that the stock price is a very poor indicator at this time. It is highly likely being manipulated by various bloggers/traders with overhype and then failure. A good recent example is the 'reports' that went out that Apple has possibly sold 1,000,000 in the first weekend. These are now quoted to illustrate Apple's failure. Apple NEVER claimed this nor forecast it, and there were no facts to support such a contention.

Ignore the price for now. As long as Apple continues to execute like they have been, as long as they get Leopard out in the near future (just to build confidence as much as sales which I don't think it affect greatly) and if Apple can launch iPhone as successfully in Europe as they have in the US the $200+ target will happen. It will be very bumpy but those bumps will be buying opportunities if you have some spare cash.

Why is Apple stock so easily manipulated by blogging rumors. Does it say something about the type of people that invest in Apple? Are Apple investors really just blind sheep that never look further than a day's trade? Apple investors are their own worst enemy.
The next rumor is about the failure of launching a 3G phone that EVERYONE was expecting to happen soon. When the hell did Apple ever say they were going to launch a 3G phone? But some idiot being interviewed was making this statement. Now investors are going to listen to this fool and start pulling out money again.
Maybe the media should take some blame, but the chickensh*t investors aren't of much use either.
Would you have any idea whether it's day traders or large institutions that cause Apple's stock fluctuate so much on idle rumors? Maybe it's getting too easy to trade so people don't take time to think things through. A good broker might tell you it's foolish to keep dumping stock everytime you hear some unfounded rumor. I know you're going to say that they wouldn't care because they get a commission, but I don't believe every broker is like that.
I have to disagree with you on a $200 stock price, however. Not this year. Apple stock can't get any traction since the US economy is not in the best of shape. I think if it gets to around $170 I'd consider myself lucky.

[Rot'nApple]

Originally Posted by EruIthildur

10 million phones? Sounds doable to me, especially if they go hit up other countries (just think, this was just the states' opening).

Yeah, probably doable, especially now that the iPhone is showing up as either paid product placements on tv shows or tv shows using the product for the "cool factor". Saw on Sunday night "The Hill" (I believe the name of the show) where one guy driving a car pulled out his iPhone to call and argue with his friend who was in his apartment on his iPhone and a MacBook Pro sitting on the coffee table...

[melgross]

Originally Posted by Constable Odo

Why is Apple stock so easily manipulated by blogging rumors. Does it say something about the type of people that invest in Apple? Are Apple investors really just blind sheep that never look further than a day's trade? Apple investors are their own worst enemy.
The next rumor is about the failure of launching a 3G phone that EVERYONE was expecting to happen soon. When the hell did Apple ever say they were going to launch a 3G phone? But some idiot being interviewed was making this statement. Now investors are going to listen to this fool and start pulling out money again.
Maybe the media should take some blame, but the chickensh*t investors aren't of much use either.
Would you have any idea whether it's day traders or large institutions that cause Apple's stock fluctuate so much on idle rumors? Maybe it's getting too easy to trade so people don't take time to think things through. A good broker might tell you it's foolish to keep dumping stock everytime you hear some unfounded rumor. I know you're going to say that they wouldn't care because they get a commission, but I don't believe every broker is like that.
I have to disagree with you on a $200 stock price, however. Not this year. Apple stock can't get any traction since the US economy is not in the best of shape. I think if it gets to around $170 I'd consider myself lucky.

Yes, indeed!

[potterhead4]

Originally Posted by anantksundaram

Wow, if true, this could be HUGE for us Apple people...... (sorry for the long URL):

http://www.businessweek.com/technolo...ndex_top+story

I wonder which former executive is quoted?

"They're probably already frustrated with AT&T. If they put a few billion behind this, they could build a kick-ass network."

A kick-ass prospect, no doubt.

[minderbinder]

Originally Posted by dr_lha

I'm going to take a wild guess here and guess that less than 1% of phones were bought for that purpose, maybe even less.

Most likely. I'd bet the numbers are comparable to the people hacking OSX and running it on cheap PC hardware. Sure, it's possible but having to jump through even minor hoops will deter most people.

Pretty amazing sales so far, they were probably really close to a million before they even cut prices.

And the stock is up so far today, no surprise there. The big drops after the event last week just show how little understanding of Apple and the industry most wall street types have.

[Abster2core]

Originally Posted by physguy

Huh???

Look carefully. AppleInsider stated, "Apple, which slashed thecost of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008."

It should have been, "Apple, which slashed the price of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008."

[shanmugam]

1 million iPhones, impressive.

10 million can be achieved end of the year, one unlocked market that will make things even easier.

[MacTel]

Originally Posted by anantksundaram

Wow, if true, this could be HUGE for us Apple people...... (sorry for the long URL):

http://www.businessweek.com/technolo...ndex_top+story

That's fine for the U.S.. If Apple did bid and get the spectrum then I'm not sure how that would help them around the world. Their current strategy seems to be working well in selling their million iPhone. For those like me that don't like AT&T there's the iPod touch.

[physguy]

Originally Posted by Abster2core

Look carefully. AppleInsider stated, "Apple, which slashed thecost of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008."

It should have been, "Apple, which slashed the price of the handset by $200 last Wednesday, has said it hopes to sell 10 million units by the end of 2008."

Sorry, my mistake - I thought you were referring to the headline.

[Lafe]

Originally Posted by AppleInsider

Apple said Monday that it sold its one millionth iPhone yesterday, just 74 days after its introduction on June 29.

{Raises virtual glass.}

Here's to you, Steve, and to the many fine people who work for you.

[ecking]

How many of those were bought at the new reduced price? It's been less than a week since the drop but that alone stil could have been enough.

They should send the 1 millionth person something, maybe a personal letter from jobs or an engrave classic or nano, I don't know something, spin that PR wheel a tiny bit harder.

[melgross]

Originally Posted by ecking

How many of those were bought at the new reduced price? It's been less than a week since the drop but that alone stil could have been enough.

They should send the 1 millionth person something, maybe a personal letter from jobs or an engrave classic or nano, I don't know something, spin that PR wheel a tiny bit harder.

They've often done that in the past. I wonder if they will do it now?

[thechef72]

Sales will explode if AT&T and Apple create a business/education plan, currently no state system or University has a way of purchasing an iPhone as AT&T does not provide for a state contract (state contracts can't pay tax or have an individual own the account ...we know that the plan price won't be discounted) and companies have other billing issues. Once this changes the volume purchases will start and my stock will be ...

[oberpongo]

Originally Posted by physguy

Huh???

This should remove any doubt that the price reduction was a positive reaction to a positive situation. The price cut could not have had ANY impact on selling 1 MILLION phones in 74 days. It was only in place for a couple of days.

Apple

1) Increased the manufacturing base for the iPhone with the introduction of the iPod Touch - same screen, same memory, same processors, etc..... This would have lowered their costs.

2) Apple wants to really smash into the market over the holiday season.

3) IF the new 3G phones are coming this positions the pricing much much better. Apple always seems to strive to rational pricing structures for its product line.

4) Apple got their first monthly payment from AT&T and their iPhone users. At about 10% this will be about 10$ per month or 240$ in a two year contract period. Plenty to cut retail price by 200$. Apple always said that they don't want carriers to subsidize the phone, but eventually they are subsidizing it themselves.

[Ireland]

Originally Posted by JakeTheRock

10 million in a year and a half? that seems like an awful lot...

Actually they are aiming for 10 million in 2008 by itself. As in, 12 months.

[quinney]

Originally Posted by anantksundaram

Wow, if true, this could be HUGE for us Apple people...... (sorry for the long URL):

http://www.businessweek.com/technolo...ndex_top+story

This rumor brings to mind the former MCI data center Apple bought in Newark,CA in
Feb 2006. Does anyone know how Apple is (or is not) using that data center?

[melgross]

Originally Posted by Ireland

Actually they are aiming for 10 million in 2008 by itself. As in, 12 months.

That was never said.

[minderbinder]

Originally Posted by melgross

That was never said.

"Q: Do you still think you'll sell 10 million iPhones in the first calendar year — or will it be more?

Jobs: We think 10 million is a realistic goal."

http://www.usatoday.com/tech/techinv...enson-qa_N.htm

Jobs first mentioned that goal when he announced the iPod and has reiterated it multiple times since then.

[TenoBell]

I cannot see Apple buying the new wireless spectrum and starting a new network all by itself. Its way out of Apple's business model and would cost too much money to implement.

I could see Apple partnering in the buy with Google and others then allowing someone else to build the network. That would allow an open network free from mobile service providers.

[iShawn]

five characters.