or Connect
AppleInsider › Forums › Mobile › iPhone › A look at who's making iPhone 3G purchases thus far
New Posts  All Forums:Forum Nav:

A look at who's making iPhone 3G purchases thus far

post #1 of 38
Thread Starter 
A study of customers queued outside of Apple's retail stores over the weekend reveals that early iPhone 3G adopters are predominantly Mac users, and that Motorola and Samsung are amongst the rival handset vendors that will be hit hardest as consumers flock to Apple for their new mobile phone.

The survey of more than 280 line waiters conducted by investment bank Piper Jaffray in New York City and Minneapolis was aimed at quantifying everything from launch demand, to the mix of 8GB and 16GB models, to the phones from which customers were upgrading. The results were then also compared to those from a similar survey conducted during the original iPhone launch last year.

Overall, Piper Jaffray found that 61 percent of early adopters owned Macs and 39 percent owned Windows-based PCs, a sign that Apple's existing customer base was largely to thank for the successful launch that raked in sales of more than 1 million units in just three days. At the same time, however, that figure clearly shows the Cupertino-based company to be gaining influence amongst Windows users, who accounted for just 25 percent of first weekend iPhone sales last year.

Of those surveyed, 66 percent said they planned on buying the higher capacity 16GB model, compared to a resounding 95 percent of buyers who selected the higher capacity 8GB option during last year's iPhone launch. The remaining 34 percent were content saving $100 and settling for the entry level iPhone 3G that offers half as much storage.

The iPhone is also starting to show some definitive signs of cannibalization of standalone iPods, however. Last year, 68 percent of early iPhone adopters surveyed by Piper Jaffray said they would continue to use an iPod in addition to their iPhone. That compares to just 51 percent this year.

Also of interest from the firm's survey is that 85 percent of early iPhone 3G buyers said they were compelled into their purchase by the handset's new features, while only 9 percent cited the phone's greatly reduced price. Meanwhile, the iPhone continues to serve as a driver for AT&T's subscriber base, with 38 percent of those queued outside Apple retail stores indicating they'd be switching to AT&T for the first this past weekend (compared to 52 percent during the original iPhone launch).



Those customers switching to AT&T to get an iPhone 3G or dump their non-Apple handset were doing so largely at the expense of handset makers Motorola and Samsung, Piper Jaffray found. In particular, 20 percent said they were retiring a Motorola handset and 13 percent said they were trading up from a Samsung phone. Only 6 percent said they were moving from a Blackberry, 4 percent from a Nokia, and 3 percent from a Treo. Another 6 percent said they were upgrading from an LG phone, and 38 percent owned a first-generation iPhone.

Gene Munster, an analyst with Piper Jaffray, had originally estimated that Apple would sell 425,000 iPhones from Friday morning to Sunday evening. Following Apple's announcement Monday morning that it actually moved 1 million units, Munster issued an updated report to clients in which he estimated the majority of that upside was driven by stronger than anticipated demand internationally.



Specifically, he estimated that 400,000 units were sold in the U.S., 250,000 units were sold in the U.K., and an average of 18,000 units were sold in each of the 19 other countries.

"Global demand for the iPhone is better than expected. This trend will likely continue as Apple rolls out an additional 58 countries in the next several months," the analyst said. "In addition, we expect Apple will sell phones in China and Russia by year end. The only problem is production, but we continue to believe 45 million units for 2009 is achievable."
post #2 of 38
Surprised see to 64k in Mexico wow, almost comes third or fourth after US, UK, Italy

only 14k in Australia???

Nov '09 | iMac 21.5" C2D 3.06 Ghz | Intel 330 240GB SSD | ATI

Sep '12| Toshiba 14" 1366 x 768! | i5 3rd Gen 6GB| Intel x25-m 120GB SSD | Win 7|  Viewsonic VX2255wmb 22" LCD
iPhone 4S| iPad 2 wifi

Reply

Nov '09 | iMac 21.5" C2D 3.06 Ghz | Intel 330 240GB SSD | ATI

Sep '12| Toshiba 14" 1366 x 768! | i5 3rd Gen 6GB| Intel x25-m 120GB SSD | Win 7|  Viewsonic VX2255wmb 22" LCD
iPhone 4S| iPad 2 wifi

Reply
post #3 of 38
Quote:
Originally Posted by shanmugam View Post

Surprised see to 64k in Mexico wow, almost comes third or fourth after US, UK, Italy

only 14k in Australia???

Those are Gene's "estimates," remember.

Best,

K
EIC- AppleInsider.com
Questions and comments to : kasper@appleinsider.com
Reply
EIC- AppleInsider.com
Questions and comments to : kasper@appleinsider.com
Reply
post #4 of 38
69K in Mexico? WOW! Im very confused.

I think its good that not all 70 countries were selling iPhone. Can anyone imagine the down time for the Apple Servers. ohhhhhh myyyy...

If 21 countries shut them down, then 70 would just explode them
Apple had me at scrolling
Reply
Apple had me at scrolling
Reply
post #5 of 38
Interesting numbers. More PC user's on board for this one.

So many countries on the list. Certainly gives the impression of the iPhone being a dominant global platform but how does it compare with the penetration of its competitors? Is the iPhone the largest platform or does it just appear to be?

thanks for the article
post #6 of 38
Gene does not know what the actual number breakdown was.... estimates, people.... estimates!

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #7 of 38
Quote:
Originally Posted by iVlad View Post

69K in Mexico? WOW! Im very confused.
I think its good that not all 70 countries were selling iPhone. Can anyone imagine the down time for the Apple Servers. ohhhhhh myyyy...
If 21 countries shut them down, then 70 would just explode them

LOL Cupertino would have melted into the Pacific Ocean.
post #8 of 38
Quote:
Originally Posted by SpamSandwich View Post

Gene does not know what the actual number breakdown was.... estimates, people.... estimates!

Yeah the prediction is ambitious, but wow. Very very rough estimates. Somebody had to do it though.

The UK number I feel is quite high, given how fast they flew out the window and how fast everywhere was sold out and pre-booked up the wazoo. I'd say 150,000 sold *max*. Assuming 1,000 outlets across the UK, each with 100 phones, that's 100,000 total. We know most places had only about 50 on average, maybe less. Throw in about 50,000 pre-orders, that's 150,000 total sold so far in the UK. But what do I know...
post #9 of 38
Quote:
Originally Posted by wonderbread View Post

Interesting numbers. More PC user's on board for this one.

So many countries on the list. Certainly gives the impression of the iPhone being a dominant global platform but how does it compare with the penetration of its competitors? Is the iPhone the largest platform or does it just appear to be?

thanks for the article

As I was standing in line in the Manhattan Beach store I overhead a woman talking about her computer. I thought the wording of her discussion was interesting. She said "We don't even have a Mac, we just have a regular Dell." It might not seem like much but it was a good indication to me that Apple's image is in good shape and that it's becoming more of an aspirational brand. Obviously, this woman was standing in line to get an iPhone, so she wasn't just somebody off the street, but I thought it was an interesting turn of phrase.
post #10 of 38
Quote:
Originally Posted by wonderbread View Post

Interesting numbers. More PC user's on board for this one.

So many countries on the list. Certainly gives the impression of the iPhone being a dominant global platform but how does it compare with the penetration of its competitors? Is the iPhone the largest platform or does it just appear to be?

thanks for the article

IMO it's going to start of as somewhere in the top 5 after Symbian and WindowsMobile. Probably by the end of the year it will be ahead of WindowsMobile...

If Apple can manage the momentum and produce enough phones and grow the company really quite rapidly, we could see it in top 2 to top 3, maybe no.1 for smartphones. Nokia is the big chunk of the competition but right now Apple is probably looking to edge out Windows Mobile and Blackberry devices.
post #11 of 38
Manhattanites: Does the 5th Avenue line even get significantly shorter at midnight and later?
post #12 of 38
That 38% number is striking, or 380,000 potential units to immediately
unload on eBay. Do early 3G adopters with original iPhones really think the originals
are that bad to impulsively move over to a more expensive plan before the two-year
period runs out? Maybe these are the type of folk who trade in a new car
for another new one every couple years ...

Or, perhaps a good portion are the post-May 27 purchases which trade
up for a minimal cost.

At any rate, for cheap hand-me-downs, can one fire up the "old" AT&T plan?
post #13 of 38
Or do they think the 3G is that much better and worth the added cos of moving up?

If I had an original, I would not have hesitated to move up. I anticipate moving up next year.

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply
post #14 of 38
Hmm, I'm not sure about a survey that says "Do you own a Mac or PC?" and the numbers add up to 100%. While I can believe there won't be many people who own neither queuing for hours to get a new iPhone on the first day, what should people like me who own 3 Macs and 2 PCs answer?
post #15 of 38
Quote:
Originally Posted by shanmugam View Post

Surprised see to 64k in Mexico wow, almost comes third or fourth after US, UK, Italy

only 14k in Australia???

I think Mexico's numbers are surprising if true, but weren't the Australians complaining pretty loudly about their plan offerings? I thought they showed they were getting a "deal" that was roughly comparable to Canada's.
post #16 of 38
We only have Tequila.....

Whats Tequila?

UM...Its Like Beer.....

Is it fattening? FATTENING?

Viva Mexico!

One thought he was invincible... the other thought he could fly.

They were both wrong.

Reply

One thought he was invincible... the other thought he could fly.

They were both wrong.

Reply
post #17 of 38
Quote:
Originally Posted by JeffDM View Post

I think Mexico's numbers are surprising if true, but weren't the Australians complaining pretty loudly about their plan offerings? I thought they showed they were getting a "deal" that was roughly comparable to Canada's.

No, The Optus plans are pretty good. Probably better that the US. Calling plans start at $19 per month, need to buy the phone though, that is $500 but paid off at $50 per month.

Australia's problem is no stock, if Australia only sold 14k then Australia only had 14k.
post #18 of 38
One has to normalize sold units to number of citizens in each country. 6k in Sweden with 9mil citizens. Someone? Piper-Jaffery? Otherwise these figures are of no big interest for comparison. As absolute figures one has to consider RIM, Nokia and all the others. 1mil phones are a lot - but in comparison?
post #19 of 38
I am also surprised by the estimate for Mexico. I am even more surprised by the estimate for Italy where, despite their love of cell phones, people complained quite loudly (including to the government) about the price of the iPhone. Maybe lust overcame people's anger and frustration. La dolce vita, indeed!
post #20 of 38
Quote:
Originally Posted by retiarius View Post

Do early 3G adopters with original iPhones really think the originals are that bad to impulsively move over to a more expensive plan before the two-year period runs out?

I didn't have the original iPhone, but if the Edge speed on the original is the same as the iPhone 3G (I assume it is) then the 3G is totally worth upgrading for. I've been out of 3G range a couple of times and had to use Edge...man, it was almost unbearable after being on 3G 95% of the time! Now, if you don't have 3G readily available, then it probably isn't worth the upgrade, unless you really love GPS.

Quote:
Originally Posted by Bergermeister View Post

Or do they think the 3G is that much better and worth the added cos of moving up?

If I had an original, I would not have hesitated to move up. I anticipate moving up next year.

Agreed. If a year from now they have a significantly better iPhone (such as going from Edge to 3G & GPS) I will almost surely upgrade. I can't imagine living in an area that has 3G, yet knowing that I'm stuck with an Edge only iPhone. It's night-and-day, IMO.
post #21 of 38
250k in UK - and only 2k in Norway...
What were they smoking when estimating?
post #22 of 38
25,000 iPhones sold in Japan is impossible. Everyone swore no Japanese would be caught dead with an iPhone because Japan already had the most sophisticated handsets in the world. The iPhone has no emoji characters, no mechanical keyboard, no Chaku Uta, no 1Seg and no FeliCa. What the heck is going on in Japan. There must be some mistake. Maybe they thought the iPhone was the latest Sony Bravia phone.

Supposedly there is still pent-up demand in Japan because the stores can't keep enough of them in stock. I know, I know. It has to be that there is only 10 iPhones a day at each store. Fake demand by Apple. Apple is devious. The SoftBank CEO says the iPhone will be a hit in Japan, but what does he know. Nothing, he's Japanese and is responsible for handset sales in his company. So why believe him since his desire is to incur a huge money loss for his company.

Truthfully, some of the handsets the people had that were queued up for the iPhone didn't really look like they were using cutting edge handsets.
post #23 of 38
Quote:
Originally Posted by Bergermeister View Post

Or do they think the 3G is that much better and worth the added cos of moving up?

If I had an original, I would not have hesitated to move up. I anticipate moving up next year.

Both my daughter (23) and I were early adopters and even with 2.5g, $200 premium the last year was a joy using the iPhone vs. her razr and my samsung. My whole business is on the phone and the ease of adding contacts, syncing, checking email was wonderful. We will always buy the next "latest & greatest" Apple products just because of the increase in productivity, speed and ease of use. The Apple "premium" is well worth it!

Regards,

Chris
post #24 of 38
What does it say when 38% of iPhone buyers are...iPhone owners? I would think Apple would want to broaden their userbase, not resell to 2/5 the same people as they did last year. What's perhaps more bothersome is why do so many $600 phone owners feel the need to replace it just 12 months later?
post #25 of 38
Quote:
Originally Posted by Cory Bauer View Post

What does it say when 38% of iPhone buyers are...iPhone owners? I would think Apple would want to broaden their userbase, not resell to 2/5 the same people as they did last year. What's perhaps more bothersome is why do so many $600 phone owners feel the need to replace it just 12 months later?

What do you think the people will do with their original iPhones? They will not throw them away, like any other brand of cell phone. They will either sell them or give them to family members, and they will use them as phones.

When my wife and I bought iPhones months ago, when the 16 GB models were released, I sold both of our Moto Razrs on eBay and recouped over $100. Thankfully the Razr still has some value, but an iPhone will easily fetch a few hundred dollars on eBay, even a 1st gen model.

Once I saw the iPhone, I could not wait to get rid of the Moto Razr. Even though it is a good phone, the software sucks compared to the ease of use of the iPhone.
post #26 of 38
I am what I think is a loyal Apple customer. (I only own Macs-5-and have at least 5 iPods starting with a 1G). I have not purchased a computer in a store in 15 years and haven't purchased a cellphone in a store in 8 years. I have been waiting for this second generation iPhone (despite the fact that it's AT&T) since the announcement of the first generation iPhone. I frequently pre-order products Apple announces but I may never purchase an iPhone because I can't get it online and have no interest in doing so in a brick and mortar store. Apple was really short-sighted in changing their mode of selling these. I think, despite how well they did this weekend, that there must be people like me, who don't want to deal with the hassle they are putting people through in store. I am sorely disappointed.
post #27 of 38
Quote:
Originally Posted by schralp View Post

I am what I think is a loyal Apple customer. (I only own Macs-5-and have at least 5 iPods starting with a 1G). I have not purchased a computer in a store in 15 years and haven't purchased a cellphone in a store in 8 years. I have been waiting for this second generation iPhone (despite the fact that it's AT&T) since the announcement of the first generation iPhone. I frequently pre-order products Apple announces but I may never purchase an iPhone because I can't get it online and have no interest in doing so in a brick and mortar store. Apple was really short-sighted in changing their mode of selling these. I think, despite how well they did this weekend, that there must be people like me, who don't want to deal with the hassle they are putting people through in store. I am sorely disappointed.

Surely you can venture in to a store once every eight years.
post #28 of 38
Quote:
Originally Posted by Kendoka View Post

250k in UK - and only 2k in Norway...
What were they smoking when estimating?

Just compare the pricing schemes. Here in the UK, it's very common to pay £35-£45 per month for your contract ANYWAY so to pay an extra one-off £59 to get a 16Gb iPhone on the higher rate contract is a complete no-brainer.

Me, I queued at 06.45 outside our local O2 shop and by 08.00 when the doors opened, all of the phones they had in had been allocated to people in the queue.

I stayed with my £35/mo contract (have been on that rate for years now) and paid a one-off £159 for the iPhone.

The UK sold the second most to the USA because we've got the BEST pricing scheme in the world. This will prove itself further in the coming months, particularly when we all look and laugh at the poor Canadians being Rogered by Rogers.

Scandinavia? Also being raped over their months charges, poor data bundles and high initial outlay for the phone.

Again, the UK has the BEST worldwide deal on the iPhone, why don't the other carriers wake up and start to watch them fly out like we are?
post #29 of 38
Quote:
Originally Posted by AppleInsider View Post

Overall, Piper Jaffray found that 61 percent of early adopters owned Macs and 39 percent owned Windows-based PCs, a sign that Apple's existing customer base was largely to thank for the successful launch that raked in sales of more than 1 million units in just three days.

Wow, you mean 61% of people lining up outside an Apple Store owned Macs?

McD
Why does somebody ask me a question, I can never understand, I can never provide the answer, but believe I can.
Reply
Why does somebody ask me a question, I can never understand, I can never provide the answer, but believe I can.
Reply
post #30 of 38
Quote:
Originally Posted by Cory Bauer View Post

Surely you can venture in to a store once every eight years.

I'm not saying I never go in a store. I just don't choose to buy computers there (I like to customize them) and there's no bigger cluster than buying a cellphone at a store. I am strictly Verizon and each time I get a new one, I have it FedEx'd to my house and activate it that way. I can't believe they were losing so many phones to illegal unlocking that they can't sell 'em and activate 'em online. My friend who stood in line to get one, couldn't have it activated onsite, and was sent home to do so on her own. Now why not sell 'em online?
post #31 of 38
What about France?

It seems there would have been a number of phones sold in Fance, no? These numbers seem awfully sloppy, even for rough estimates... Mexico? seriously....
post #32 of 38
Quote:
Originally Posted by jb510 View Post

What about France?

It seems there would have been a number of phones sold in Fance, no? These numbers seem awfully sloppy, even for rough estimates... Mexico? seriously....

France didn't launch, they're launching next week I think. And France was a really bad bet from Job's part, it's one of the lowest penetration markets with just 80 something % and I don't think they tried hard at all the 1st time and this time they managed to arrive late when Aussie's Optus turned in last minute and managed to sell on July 11th...

They also get it wrong in Portugal placing Portugal Telecom as a seller when they didn't get a deal with Apple, they shunned the iPhone - even heard they claimed the iPhone had tech problems - and last week they came out stating they were getting the iPhone too (a lie, no deal to this date) and that they had run out to London to deal with Apple regarding that. I mean, is there Apple HQ in London, someone please help me ;-) Portugal's carriers are Vodafone and Optimus (Orange affiliate). Vodafone has sold out, Optimus probably too.
post #33 of 38
Rogers iPhone sales suck. Look,, the USA is only 10 times the Canadian population and they have had the iPhone for a year already.

10 times the population
40 times more sales of iPhones.

Rogers is loosing money,,, their stock should TANK.


Also see:
Canucks deserve to be treated like iHumans
Joy of Tech SLAMS Ted Rogers

Canucks deserve to be treated like iHumans

http://www.joyoftech.com/joyoftech/j...ives/1123.html
post #34 of 38
Based on the figures above, the iphone is 3 times more popular in the UK than in the US...

Working on a population of the US or 300 million and the UK of 60 million. One in every seven hundred and fifty people in the US bought an iPhone over the weekend, compared with One in every two hundred and fifty people in the UK... go figure...

I suppose most Brits just have that creative flare... It was designed by a brit for goodness sakes (Jonathan Ives)....
post #35 of 38
Actually it was on the Mexican news that most of the iPhone points of sale in the country ran out of stock by noon. People were forming lines 2 or 3 hours prior the opening of the stores and that's something never seen in the country.

Just think that there are 70 who own a cellphone and from those 70 million 57 are Telcel's customers the company that launched iPhone in the country.

post #36 of 38
One simple question, regardless if you are in New York or Minneapolis.

What OS do you (an iPhone owner) use?
http://www.degutis.com/blog/iphone-o...rting-systems/

-Al
post #37 of 38
The article mentions that the percentage of switchers to AT&T is down from the initial iPhone introduction (52%) to now (38%). But it also says that 38% of the people in line already have iPhones. If we assume that almost none of the existing iPhone owners are switchers we can conclude that the percentage of switchers among the people in line who don't already have iPhones is much higher: about 61% in fact! (i.e, Switchers/NewOwners = .38/(1-.38) =.61)
post #38 of 38
Quote:
Originally Posted by McDave View Post

Wow, you mean 61% of people lining up outside an Apple Store owned Macs?

McD

They surveyed outside AT&T stores as well. I know because I took the survey outside an AT&T store.


Quote:
Originally Posted by schralp View Post

I'm not saying I never go in a store. I just don't choose to buy computers there (I like to customize them) and there's no bigger cluster than buying a cellphone at a store.

Having purchased an iPhone at the most chaotic moment (when it went on sale last friday morning), I can assure you it's a highly painless process. Figure out all the details at home, then just walk in to an AT&T store and tell them exactly what plan and model phone you want. If they don't have it in stock, they'll order it and call you when it arrives.

Quote:
Originally Posted by schralp View Post

My friend who stood in line to get one, couldn't have it activated onsite, and was sent home to do so on her own. Now why not sell 'em online?

I went home with mine still in the sealed box as well, but the reason that's still better for them than selling it online is because customers still have to sign a 2-year contract before they leave the store, whether the phone is activated or not.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › A look at who's making iPhone 3G purchases thus far