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Rumor: Initial sales of Apple's Verizon iPhone 4 disappoint

post #1 of 118
Thread Starter 
A new report that purports to show initial sales of the Verizon iPhone 4 claims that device's launched failed to meet the expectations of both Apple and Verizon.

Boy Genius Report cited an alleged Apple source on Wednesday in a report that claims first-week Verizon iPhone sales performed "a little under what Apple and Verizon anticipated." The source also provided figures that claim to show sales totals from five Apple stores, showing that Verizon iPhone sales by the device's fifth day of availability barely exceeded AT&T.

The figures purported to be from five Apple stores include "two very, very prominent" locations, and show in-store sales of 909 Verizon iPhones on the device's first day of availability, compared to 539 AT&T handsets. By the next Monday, the stores allegedly sold a collective total of 711 Verizon iPhone 4 models, while 618 handsets were sold on AT&T's network.

The site also claimed that online pre-orders between Verizon and Apple totaled about 550,000 units. Neither Apple nor Verizon have announced sales figures for the handset, which went on sale Feb. 10, though first-day preorders for existing Verizon customers quickly sold out. In addition, the carrier said that the iPhone 4 broke its sales records in just 2 hours.

Wednesday's report also claims that 30 percent of Verizon iPhone buyers were Android users switching to Apple's handset, while just over a quarter were coming from Research in Motion's BlackBerry platform. Just 14 percent of Verizon iPhone buyers were said to be AT&T iPhone owners switching carriers.

Apple's silence on Verizon iPhone 4 sales stands in contract to the initial debut of the iPhone 4 last June, when Apple revealed that it sold 1.7 million handsets in just the first three days of availability. This month's debut of the CDMA iPhone 4 was on just one carrier, while last year's GSM iPhone 4 was introduced in the U.S., France, Germany, the U.K. and Japan.

Various accounts from across the U.S. indicated that lines at Verizon and Apple stores were modest when the CDMA iPhone 4 went on sale earlier this month. RBC analyst Mike Abramsky said that checks with 40 different Verizon retail stores found that the launch was healthy but not a "blowout."

The analyst has forecast that Apple will sell one million of the Verizon iPhone 4 in its first week of availability. As of Wednesday, customers had a total of six full days to buy the handset at a retail store.
post #2 of 118
Big deal. They're still selling anyways.
post #3 of 118
Not everyone is going to cancel their contract in the first week.

Especially considering the well-publicized shortages of the iPhone 4 when it first came out.
post #4 of 118
Personally, I'll be waiting for the next version of the iphone, after all it is only like March, April, May away. It'll be worth the wait, already waited this long.
post #5 of 118
There's no way you can predict these sales numbers. Any analyst who puts a concrete number on this thing is an amateur.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #6 of 118
as much as I like Apple, I hope this serves as a wake up call that despite all of their research for this potential market, they shouldn't think they are a stronger player than they are.
post #7 of 118
Apple claimed they released the CDMA iPhone 4 because Verizon customers demanded it now and couldn't wait for the iPhone 5.

Looks like they were wrong.
post #8 of 118
Quote:
Originally Posted by Architapier View Post

Personally, I'll be waiting for the next version of the iphone, after all it is only like March, April, May away. It'll be worth the wait, already waited this long.

Bingo. i wouldn't purchase an iPhone in February knowing that new models are released in June/July.
[i hope that's the big reason, and not the competition of android phones with advanced features... you know, like a kickstand]
post #9 of 118
Retail store lines and sales may be below expectations, but is that because fewer people are buying the Verizon iPhone than expected OR is it because fewer people are buying it through retail outlets? By all accounts, it has been far easier to buy the iPhone on-line than it was last summer when the iPhone 4 came out on AT&T.

Until we hear from Apple I think it will be very hard to get an accurate picture of what's going on.
post #10 of 118
Quote:
Originally Posted by MacVicta View Post

Apple claimed they released the CDMA iPhone 4 because Verizon customers demanded it now and couldn't wait for the iPhone 5.

Looks like they were wrong.

I think Apple coming to Verizon was more about stopping/slowing the momentum of Android than it was about selling more phones.

There are many people waiting for iphone 5 and many that are in contracts that they can't justify getting out of. Iphone 5 should be the real numbers, and I predict it will be record sales again.

Look at all the free advertising apple is currently getting from att and verizon, this was the real genius of bringing it out when they did. While we wait for iphone 5 all we see are iphone commercials and nearly zero android commercials
post #11 of 118
I guess these were people who were waiting for Iphone on Verizon for last 3 years! . Verizon didn't go out of their way to give early upgrades or offers to switch so not every one is tempted to switch to iphone which they know is due revision in couple of months .

And AT&T played it well by giving discounts on the phones to get the few remaining potential customers with some money left after holidays
post #12 of 118
Quote:
Originally Posted by desarc View Post

Bingo. i wouldn't purchase an iPhone in February knowing that new models are released in June/July.
[i hope that's the big reason, and not the competition of android phones with advanced features... you know, like a kickstand]

how do you guys decide it's time to wait for the new phone? <6 months away?
post #13 of 118
How many blogs posted that people should NOT buy the Verizon iPhone because a new version is due out a few months? This (low sales) should not really be a surprise, tho does it count the pre-sales numbers?
post #14 of 118
They keep using the initial launch of the iPhone to compare the launch of the Verizon phone. Which is a false comparison for theatrics.

The more relevant comparison would be the Verizon iPhone against other phones that Verizon currently sells. How well is it selling against those?
post #15 of 118
In comparison to most phones the Verizon iPhone numbers are good. They just don't look as good as when compared to the stratospheric initial launch numbers of iPhone. No other phone comes anywhere near those types of numbers.

Its a nonsensical comparison anyway.

Quote:
Originally Posted by OriginalG View Post

as much as I like Apple, I hope this serves as a wake up call that despite all of their research for this potential market, they shouldn't think they are a stronger player than they are.
post #16 of 118
I got off AT&T about a year, enjoying my Driod but will be replacing it with an iPhone 5 when it arrives on Verizon later this year. No need to rush out and get locked into a contract for the soon to be replaced model. I actually can't believe they did as well as this.
post #17 of 118
Really this is not a surprise at all. With anticipation of iPhone 5 only months away and people already in contracts with other phones we can't expect anywhere near the original iPhone 4 numbers. When we see an iPhone 5 launch with AT&T and Verizon side by side then we can talk.
post #18 of 118
People now have a choice to use the carrier that best for them. That's the important thing. I'm sure Apple and Verizon and AT&T will all make a lot of money so everybody wins. It should have been this way from the start. Even better, open the iPhone to all carriers and let everybody enjoy this amazing device.
post #19 of 118
I don't think Apple has much concern about stopping or slowing the growth of Android.

If anything the more Android phones that are made the better for Apple. As Android grows it becomes a more fragmented and incoherent platform.

The more fragmented and incoherent Android becomes the better iOS looks for developers and users.

Quote:
Originally Posted by bcahill009 View Post

I think Apple coming to Verizon was more about stopping/slowing the momentum of Android than it was about selling more phones.
post #20 of 118
Quote:
Originally Posted by TenoBell View Post

In comparison to most phones the Verizon iPhone numbers are good. They just don't look as good as when compared to the stratospheric initial launch numbers of iPhone. No other phone comes anywhere near those types of numbers.

Its a nonsensical comparison anyway.

I think the point is that if Apple expected a massive amount of buyers (maybe not as much as an initial launch, but still a large number), then they failed. Hopefully this means they don't have an excess of inventory built up if weak sales are true
post #21 of 118
I think that there were a few unhappy (loud and vocal too) AT&T customers. But for most people, Verizon was not seen as a better choice.

As each day passes, more information on the lack of Verizon iPhone features surface. This was on 9-to-5 Mac today:



Maybe, just maybe, customers are smart. Maybe people realize that Verizon's CDMA network has crippled the iPhone (lack of speed, lack of concurrent voice/data, lack of global coverage, lack of "real" conference call ability and management (no drop, no swap, no more than 2 calls)).

Here was an opening day at an Apple Store....embarrassing for Apple.

http://www.youtube.com/watch?v=GUaFywhywjA
post #22 of 118
Quote:
Originally Posted by OriginalG View Post

how do you guys decide it's time to wait for the new phone? <6 months away?

Well for me, there was not a chance of switching to Cingular back on June 29, 2007. No mobile service where I live and from what I was hearing from my friends in D.C. and NYC they couldn't wait to switch back to Verizon. So for me, living in BFE, Wyoming, it only seemed reasonable to wait an extra 3-4 months for the new iphone, after waiting this long. My upgrade date was pre-christmas and I honestly will wait to see what the new technology brings.
post #23 of 118
Quote:
Originally Posted by MacVicta View Post

Apple claimed they released the CDMA iPhone 4 because Verizon customers demanded it now and couldn't wait for the iPhone 5.

Looks like they were wrong.

Thinking this is a marathon rather then a sprint.
post #24 of 118
Quote:
Originally Posted by OriginalG View Post

as much as I like Apple, I hope this serves as a wake up call that despite all of their research for this potential market, they shouldn't think they are a stronger player than they are.

as much as I don't know you, I hope this serves as a wake up call that despite all of what you might think of yourself, you shouldn't think that you had anything of substance to say.
post #25 of 118
Having tried an iPhone 3G on AT&T and after waiting for several years, I was more than happy to buy an iPhone 4 on Verizon. If something exceptional comes from Apple mid summer and it probably will, I'll decide what to do at that time. I sold a Droid X to pay for my new iPhone 4. I can always sell my iPhone 4 and buy the new one if need be.
post #26 of 118
Buy 8 month old phone now or buy newly released phone in 4 months!
post #27 of 118
It just means that people are waiting out their contracts. It will be interesting to see - do cell contracts end on the last day of the month or randomly? If the last day that will provide a predictable influx to Verizon monthly.
post #28 of 118
Perhaps those Marketer's and Accountants failed to factor in that the iphone4 is in mid cycle and an iphone5 is in the pipeline for a June or July release. Also, standing in line in June is quite different than early February unless you only count those in southern California. With heavy snow and blizzard conditions, I doubt that even the biggest fanboy braved an overnight line unless Mr. Jobs was personally handing out hot chocolate.
post #29 of 118
what's "expecations"? Cannot find it in Dictionary...


sent from my... internet browser of choice.
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sent from my... internet browser of choice.
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post #30 of 118
Quote:
Originally Posted by OriginalG View Post

how do you guys decide it's time to wait for the new phone? <6 months away?

once i decide it's time to upgrade my apple hardware, i hold out until the next refresh of what i'm planning on buying.

there's another apple rumor site that has a really nice list of apple hardware, launch dates, etc.
http://guides.macrumors.com/Buyer%27s_Guide

i prefer the articles on AppleInsider, but i always point my friends considering buying apple hardware to the link above.
post #31 of 118
Looks like they doubled their sales.

Fantastic.

Overnight, they are selling twice as many phones with verizon and att combined than they were selling with att alone.

Major win for apple.
post #32 of 118
I was amused to see the stanchions going up at the local Apple Stores. I asked one of the managers, "so given all the obstacles in the way of a huge uptake of these by Verizon customers - do you really think this will be as big as a regular release?" He responded in the negative, but they wanted (at his store anyway) to be prepared to handle any large numbers who might come in to purchase. Release day they were very busy there when I went by, but nothing like a regular release.

So consider the following points:

>This is a mid-stream carrier release of the iPhone 4 which was introduced seven months ago, not a regular release
>Most people who have wanted iPhones (and continue to do so) have gotten an interim solution, most likely an Android-based model and therefore are locked into a contract with a juicy early release penalty (reduced or no subsidy for the iPhone).
>The new and improved iPhone (5?) is a scant 12 or so weeks away for those who are month to month in anticipation of the move to Verizon
>Migratory ATT users thinking of moving(back?) to Verizon have gotten used to full data/voice use on ATT, the current 3G model may be less desireable.
>Apple has not made a huge deal out of this advertising-wise, no Jobsian fanfare, no special Apple newsflash - they modified/added a Verizon too ad, but that was about it.
>ATT has that pricey anti-migratory early termination fee as well.
>Android is filling out the cheap/lowend semi-smartphone (idiot-savantphone?) transition out of the feature phone segment for those who want to try-out smartphoning before committing to the higher-end true smartphones

Those points alone would give pause to an observer waiting to see the reaction. As it is the release wasn't bad, the best pre-order response Verizon had seen ever - which is pretty solid performance. Anecdotally a handful of my friends who were not contract-bound immediately purchased theirs retiring Blackberries and Androids among them. The rest seem to be poised to act when the contract limitation allows them to do so.

All in all, as good a response as anyone could have reasonably expected, and better than several competing technologies for their releases.
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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post #33 of 118
OMG relaunching the same phone 7 months later with the expectation that it will be obsolete in five months an it is selling a little below expectations??? Apple is DOOMED

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #34 of 118
Quote:
Originally Posted by macnyc View Post

as much as I don't know you, I hope this serves as a wake up call that despite all of what you might think of yourself, you shouldn't think that you had anything of substance to say.

well then let me elaborate:
-Apple had expectations that they would be a certain number of handsets sold at launch
-expectations would be based on the current generation device and what they perceive as the market demand for it
-this article theorizes that initial sales numbers did not meet those expectations or those of Verizon either
-if the article is in fact true, then it means that what Apple thinks about itself and its products doesn't actually represent where customers are willing to put their money

from that, I'm trying to say:
-Apple should bring their A game to all product releases and stop holding back features. They'll have to work harder to win over the customer whether because of competition, or because their product cycle timelines are becoming more predictable
-Apple does have a lot of sway. But I think they should realize that they shouldn't always use their influence especially when the outcomes don't always meet their expectations. This refers to the tough line they stood on the Verizon deal for years, the current subscription policy, cost of songs on iTunes, Flash (maaaybe not =p)
post #35 of 118
Quote:
Originally Posted by MacVicta View Post

Apple claimed they released the CDMA iPhone 4 because Verizon customers demanded it now and couldn't wait for the iPhone 5.

Looks like they were wrong.

As usual everybody spins this to agree with their personal bias for or against Apple and the iPhone. Wall Street doesn't seem to be bothered though.
post #36 of 118
Unlike ATT last summer, Verizon barely budged in moving people's upgrade dates. There's millions of people who are under contract, literally just since the holiday season when they picked up Droids. Only few diehards would ever consider dropping $600 for a phone.

If they wanted to sell more iphones they should have made it easier for those who didn't want those Droids anymore to get out of their contracts but they did no such thing. As a result....you have less sales.
post #37 of 118
According to the "Carrier Clash" website http://labs.chitika.com/iZone/ at 1:10PM EST, 4.7% of U.S. iPhones are now Verizon phones. Not bad at all, if the numbers are accurate, and probably more reliable than a rumor from BGR.
post #38 of 118
Quote:
Originally Posted by dagamer34 View Post

Buy 8 month old phone now or buy newly released phone in 4 months!

There's certainly no guarantee that Verizon will have the iPhone5 in 4 months. I personally believe it won't. Either way, plenty of people buy iPhones throughout the 12 month period until about the last 4 weeks when sales drop off as stocks drop. Consumers don't care about unannounced products. Nerds who spend a lot of time on message boards like to think that a product they "know" will be announced in 4 months weighs heavily on consumers' minds, but it doesn't.
post #39 of 118
Apple needs to get its house in order, or else revenue is going to slip 0.43%.
post #40 of 118
I seriously doubt Apple expected people to turn out in February for a 7 month old phone that is soon the be updated the same way the would in July for a brand new phone.

Quote:
Originally Posted by OriginalG View Post

I think the point is that if Apple expected a massive amount of buyers (maybe not as much as an initial launch, but still a large number), then they failed. Hopefully this means they don't have an excess of inventory built up if weak sales are true
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