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Disappointment Surrounds iPhone Million Mark
posted in Apple (AAPL) |TheStreet.com is a site we follow religiously. Many of the articles are relevant and interesting perspectives of the current market. Unfortunately, I found something about Apple (AAPL) that caught my eye, and simply couldn’t resist verbally beating up the article.
The article can be found here, and is entitled “Apple Faces Cold Christmas.” Author, Scott Moritz consistently references market (non-Apple) estimates and opinionated statements throughout the article. Assuming that Apple had one million iPhones ready to sell, Scott says that the current amount sold has been well below estimates. Also, he motions towards the general critic sentiment of the iPhone in the form of 3G. 3G was supposedly going to be the downfall of the phone from the very beginning, as most “smartphones” feature 3G capabilities and run on faster networks than AT&T’s.
Well gosh Mr. Moritz, you’ve just about summed up the very bearish argument that investors and consumers had from the very beginning. What’s changed from the beginning? Apple has sold one million iPhones well within 3 months time, at a price point of about $600 per phone.
Apple says it doesn’t comment on rumors. But this new slant on the holiday product picture emerges just as Apple is taking some heat over its handling of iPhone pricing.
He’s right, Apple and Steve Jobs have made a bit of a mistake lowering the iPhone’s price by $200 in about two months after the release. It’s a slap in the face of Apple fanboys and consumers. Shame on you Apple, but don’t underestimate this upcoming quarter’s earnings results. Those will be impressive, regardless of a little backlash.
…that means Apple so far has failed to sell out the 1 million phones it was prepared to supply in the first week of its introduction — signaling to industry experts that there was a limited demand for the ‘revolutionary’ new device.
The failure of the iPhone to sell out early in its run is “an unpleasant shock” for management, says one industry source.
Scott, I love how you simply mention this as if it were a fact backed by Apple. They never released public estimates, and simply said they would be prepared to sell as many iPhones as necessary during the first few weeks. Heck, we didn’t even know until the recent media event on September 5th that Apple was about to hit one million. So they’ve made about a half billion in revenue since starting. Don’t forget, Apple also has an incredible deal with AT&T, which should lead to a steady, heavy income for years to come.
Disclosure: Long Apple Inc. (AAPL)
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