iPhone to be available at 2000 store fronts on launch

Posted:
in iPod + iTunes + AppleTV edited January 2014
Apple's inaugural mobile handset, iPhone, will be available for sale at 2000 retail store fronts when it goes on sale for the first time next month, putting the device within reach of most US households.



That's just one of the info morsels Bear Stearns analyst Andy Neff came bearing after a meeting with members of Apple's executive team on Wednesday.



During the sit-down, Apple retail chief Ron Johnson and Director of Mac Product Marketing Tom Boger informed the analyst that those store fronts would consist exclusively of Apple and AT&T retail stores. (That breaks down to approximately 160 U.S.-based Apple outlets and roughly 1840 AT&T wireless boutiques.)



"Apple affirmed its goal of June release for iPhone and expressed confidence in meeting its target of 10 million unit shipments in 2008 given iPhone's superior user experience, which Apple referred to as 'transformational,'" Neff wrote in a summary of his discussions.



He added that, in addition to iPhone?s revolutionary touch interface and intuitive software capabilities, Apple is focused on differentiating iPhone from the rest of the pack by improving every facet of its user experience, including at the point of sale.



In regards to its retail store initiatives, Apple noted that it currently operates 181 stores worldwide (161 in US and 20 international) and will continue to expand its store presence, although at a measured pace that will be based on the availability of key real estate locations.



"In addition, for international store openings, Apple noted that its strategy is to focus on regions with high Apple installed base first (i.e., Japan, UK, etc.) and then expand to other regions," wrote Neff. "As part of its multichannel strategy, Apple noted that it is expanding its store-within-store (staffed by Apple employees) at Best Buy from 50 to 200 as Apple sees it as another way to reach its customers."



While there are concerns about potential execution issues resulting from Apple's rapid growth and broadening product portfolio, the Bear Stearns analyst said it appears to him that the company is managing its growth by leveraging resources across the company. For example, he said, the company has adopted the Leopard operating system for iPhone as well as Macs, which minimizes the strain on resources.



The Cupertino-based firm has laid out a "very selective" product roadmap, he added, with a particular emphasis on the timing of introductions and what products it has decided not to pursue. In fact, the analyst said, Apple noted that the coordination and close cooperation between different groups enable the company to provide superior user experience to customers.



Neff, who is maintaining all of his current estimates on Apple, holds an "Outperform" rating on shares of the company with a price target of $143 per share. His meeting with Apple executives follows a similar sit-down between UBS analyst Ben Reitzes and other members of the Apple's leadership earlier in the month.
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Comments

  • Reply 1 of 40
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Andy Neff


    In addition, for international store openings, Apple noted that its strategy is to focus on regions with high Apple installed base first (i.e., Japan, UK, etc.) and then expand to other regions...



    I thought Apple had a poor installed base in Japan.
  • Reply 2 of 40
    Not sure about expanding to areas with large Apple customer base. Looks more like expanding to areas where there is a large potential for new cusatomers. Which is what I would expect anyone to do.



    With an install base of around 5 percent, I am not sure that there is a large install base anywhere.



    Yes, I get the point.
  • Reply 3 of 40
    tednditedndi Posts: 1,921member
    " For example, he said, the company has adopted the Leopard operating system for iPhone as well as Macs, which minimizes the strain on resources."



    so, if leopard is in the iphone then multitouch is in leopard......



    interesting!
  • Reply 4 of 40
    wingswings Posts: 261member
    Not to nit-pick or anything, but....



    "Apple affirmed its goal of June release for iPhone and expressed confidence in meeting its target of 10 million unit shipments in 2008 given iPhone's superior user experience, which Apple referred to as 'transformational,'" Neff wrote in a summary of his discussions.



    It isn't Apple's goal to ship 10 million IN 2008, but BY THE END OF 2008. If anyone is going to move the goal posts, these analysts & tech writers should let Apple do it themselves. Come Dec 31, 2008 I can almost expect these same writers to scream that Apple failed to meet it mark when the totals for 2008 come in under 10 mil, even though the grand total may be much higher.
  • Reply 5 of 40
    gee4orcegee4orce Posts: 165member
    The 'install base' is referring to the countries that have a large MOBILE PHONE install base, not Mac/Apple/iPod install base. These are clearly the best places to try and sell a new mobile phone into...
  • Reply 6 of 40
    jupiteronejupiterone Posts: 1,564member
    Quote:
    Originally Posted by AppleInsider View Post


    Apple's inaugural mobile handset, iPhone, will be available for sale at 2000 retail store fronts when it goes on sale for the first time next month, putting the device within reach of most US households.



    Yeah, but how many phones will actually be available in each of these locations.
  • Reply 7 of 40
    kenaustuskenaustus Posts: 910member
    Quote:
    Originally Posted by JupiterOne View Post


    Yeah, but how many phones will actually be available in each of these locations.



    It will probably depend on the store's sales levels and location. I would expect the Apple Stores to have at least 100, with the larger stores (like in NY) having significantly more. Apple will probably refresh the stores rapidly "while supplies last", using overnight if needed. ATT will probably take the same approach.



    That will maximize sales, but I still expect backorders to build rather fast. I'm looking for long lines outside of some of the Apple Store on the first day of sales.
  • Reply 8 of 40
    Great update. I'm unclear how they are going to offer 2000 however. Even with all the retail, store-within-a-store and Best Buy - do you think 2000 is realistic? I must be missing something. However, i'm looking forward to such a big launch this product is starting to very "2000."



    Comment NOTE: I too thought that Apple had a poor user base in Japan.
  • Reply 9 of 40
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by ThunkDifferent.com View Post


    Great update. I'm unclear how they are going to offer 2000 however. Even with all the retail, store-within-a-store and Best Buy - do you think 2000 is realistic? I must be missing something. However, i'm looking forward to such a big launch this product is starting to very "2000."



    Comment NOTE: I too thought that Apple had a poor user base in Japan.



    1) In a previous AI article or TUAW blog, I believe it was mentioned that Best Buy's AT&T cell phone centers will not be getting any iPhones. At least, not off the bat.



    2) I did some checking, the first Apple store opened out the the US was in Japan at the end of 2003. The currently have 7 stores. The 3rd largest number after the UK's current 9 and the US' 160 retail stores. I speculate that if we see additional stores opening in Japan that an ulta-portable may be around the corner*.







    * Yes, I pulled that idea out of my ass.
  • Reply 10 of 40
    jupiteronejupiterone Posts: 1,564member
    Quote:
    Originally Posted by ThunkDifferent.com View Post


    Even with all the retail, store-within-a-store and Best Buy - do you think 2000 is realistic?



    Totally realistic.....for the first 10 minutes the stores are open.
  • Reply 11 of 40
    brussellbrussell Posts: 9,812member
    Quote:
    Originally Posted by Wings View Post


    Not to nit-pick or anything, but....



    "Apple affirmed its goal of June release for iPhone and expressed confidence in meeting its target of 10 million unit shipments in 2008 given iPhone's superior user experience, which Apple referred to as 'transformational,'" Neff wrote in a summary of his discussions.



    It isn't Apple's goal to ship 10 million IN 2008, but BY THE END OF 2008. If anyone is going to move the goal posts, these analysts & tech writers should let Apple do it themselves. Come Dec 31, 2008 I can almost expect these same writers to scream that Apple failed to meet it mark when the totals for 2008 come in under 10 mil, even though the grand total may be much higher.



    I think they just meant that the target was in 2008, not that all of the sales would occur in 2008.
  • Reply 12 of 40
    nvidia2008nvidia2008 Posts: 9,262member
    I bear offerings of silk and spices from the Orient if someone can ship me the first iPhone.
  • Reply 13 of 40
    webmailwebmail Posts: 639member
    Where you not aware of this already? Apple clearly stated the delay for the iPhone was due to the Leopard team. It's a compact version of Leopard, and the multi-touch stuff is probably specifically for the iPhone. However something like multi-touch will probably show up in other Apple products.



    Quote:
    Originally Posted by TednDi View Post


    " For example, he said, the company has adopted the Leopard operating system for iPhone as well as Macs, which minimizes the strain on resources."



    so, if leopard is in the iphone then multitouch is in leopard......



    interesting!



  • Reply 14 of 40
    os2guyos2guy Posts: 2member
    Hey, I'm a block from Apple's San Francisco downtown store and I'm reading here that Apple will be selling the iPhone themselves. I've waited for this opportunity since last September when T-Mobile asked me to resign another year's contract (I declined and now pay a hefty month by month fee). I want to keep my phone number and hope the Apple Store employee is ready to make that transfer.



    So how early should I get to the downtown store? I get to work at 7am and the Apple Store doesn't open until 10am. What do you think? Should I go there directly on the announcement of sales day instead of the office or go even earlier? I suspect the lines in downtown SF will be pretty long.



    Advice please.
  • Reply 15 of 40
    ebrunnebrunn Posts: 75member
    Quote:
    Originally Posted by OS2Guy View Post


    Hey, I'm a block from Apple's San Francisco downtown store and I'm reading here that Apple will be selling the iPhone themselves. I've waited for this opportunity since last September when T-Mobile asked me to resign another year's contract (I declined and now pay a hefty month by month fee). I want to keep my phone number and hope the Apple Store employee is ready to make that transfer.



    So how early should I get to the downtown store? I get to work at 7am and the Apple Store doesn't open until 10am. What do you think? Should I go there directly on the announcement of sales day instead of the office or go even earlier? I suspect the lines in downtown SF will be pretty long.



    Advice please.




    They will almost forsure be a huge line by then. You better call in sick that day.
  • Reply 16 of 40
    anantksundaramanantksundaram Posts: 19,387member
    Quote:
    Originally Posted by ebrunn View Post


    They will almost forsure be a huge line by then. You better call in sick that day.



    Hmmmm..... why not just order thru Apple's online store and save yourself the hassle? (Unless, of course, one enjoys the socio-cultural setting of these opening-day-of-electronics lines).
  • Reply 17 of 40
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by anantksundaram View Post


    Hmmmm..... why not just order thru Apple's online store and save yourself the hassle? (Unless, of course, one enjoys the socio-cultural setting of these opening-day-of-electronics lines).



    You have to signup for a 2-year contract with AT&T or extend your curent Cingular/AT&T contract by two years. This will require a signature so it's unlikely that you will be able to use a digital signature to purchase the phone online or use a voice verification for a phone purchase.



    At least, that is how I understood it.
  • Reply 18 of 40
    imichaelimichael Posts: 9member
    Is the consensus here that there will be people camped out to get the iphone?



    I just didn't see that happening. I would think most of the campers for PS3 were under the age of 30. I have no proof of that. I'm 34 and I have a PS3, but I didn't camp out for it.



    A friend of mine did, he is 21. And he said most of the people their were in this age group.



    What I'm trying to say is, I didn't think the market age for the iphone would be 17-25.



    Not just because of the price, but because of the phone itself.



    Maybe I'm wrong about this, but I don't see an 18 year old wanting this phone. Unless of course, he/she is an Apple fan.



    Your thoughts?
  • Reply 19 of 40
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by iMichael View Post


    Maybe I'm wrong about this, but I don't see an 18 year old wanting this phone. Unless of course, he/she is an Apple fan.



    Apple has been pretty good with supply and demand over the previous years. I think the AT&T stores will be have a small number of unit compared to the Apple Stores but will have new supplies coming in almost daily to meet needs. Then again, officially there is no waiting list allowed through Apple or AT&T so the extra-nerdy may give up a night of WoW ensure an iPhone by camping outside.



    Previous reports have shown a large interest among high schoolers for the iPhone. The question is how many can afford it and are willing to shell out the money for one?



    For the record, I'm buying 3 iPhone ASAP. One for me, one for a friend, and one for my brother. Yes, I'm also going to be paying for three 2 year contracts. I hope I get some sort of family deal out of that.
  • Reply 20 of 40
    amoryaamorya Posts: 1,103member
    Quote:
    Originally Posted by solipsism View Post


    You have to signup for a 2-year contract with AT&T or extend your curent Cingular/AT&T contract by two years. This will require a signature so it's unlikely that you will be able to use a digital signature to purchase the phone online or use a voice verification for a phone purchase.



    At least, that is how I understood it.



    You can order phones online here in the UK, including signing up for the contracts. I see no reason this shouldn't apply to Apple too...



    Amorya
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