Did Apple Really 'Sell' 1 Million iPhones To End Users? Nope.
 

Did Apple Really 'Sell' 1 Million iPhones To End Users? Nope.

Posted by Eric Zeman, Jul 15, 2008 08:58 AM


That nice, shiny press release that Apple issued yesterday failed to point out one important fact. Apple counts "sales" as any device it has sold to wireless network operators such as AT&T (NYSE: T). The network operators then re-sell the devices to actual end users. According to analysts, only 425,000 end users bought iPhones over the weekend.

Yeah, how about them apples, Apple? Piper Jaffray analyst Gene Munster had calculated the actual number of 3G iPhone sales to be less than half a million. He came to that number by surveying stores on Friday, July 11, and figuring out how many new iPhones were being activated each hour.

His initial projections on Friday came to 28 new iPhones per hour per store. Based on the number of stores and the number of hours they were open, he estimated 425,000 units sold to end users over the weekend. He also suggested that it would take Apple a full 17 days to reach the 1 million mark. So why the discrepancy?

Fortune reports, "One explanation for the discrepancy may have to do with how Apple counts sales. Sales at Apple Stores are recorded at the register. But sales to its partners -- in this case, AT&T and the overseas carriers -- are recorded when the devices leave the loading docks in Asia. In other words, some of those 1 million iPhones recorded as sold by Apple may still be in transit."

Apple has sold one million iPhones to its customers. Some of its customers, such as anyone who bought an iPhone at an Apple Store, are actual end users. But many are not. Some customers are network operators, and Apple would be bulk-shipping hundreds if not thousands of devices to them. Apple may not have explicitly stated who it sold 1 million 3G iPhones to, but the implication was that one million people bought iPhones.

So thanks, Apple spin machine, for your interesting statistics and take on what a "sale" actually is.

Did Apple Really 'Sell' 1 Million iPhones To End Users? Nope. - Mobile Blog - InformationWeek

Wirelessly posted (Breaking Ball)

I'm pretty sure that every phone manufacturer does the same thing... Including RIM.
Phone manufacturers measure their own sales numbers based on the amount of units they sell to the carriers.

This is nothing new.

but I think the point in the article is that apple is tooting its own horn about selling amillion phones and portraying it as end users when we all know its not true.

Wirelessly posted (Breaking Ball)

They're gonna sell a whole lot more than a million iPhones anyway.
It's a beautiful piece of equipment and a hell of a lot of people are going to buy it and be very happy with it.

The new Enterprise features work pretty well for a first attempt at capturing some Enterprise marketshare. A few more revisions and enhancements and RIM will likely see a worthy competitor.

Wirelessly posted

Even though I like my Blackberry, I really want a 3G iPhone.

Eats a pear instead.

Nothing like a little overstated propaganda, huh?

just get a touch. its the same thing. have the best of both worlds and sacrifice nothing :)

I wouldn't think surveying stores on activations is a great way to determine actual sales. Especially considering the activation problems people were having. Many people were told to go home and activate from home instead of at the store. Did the survey count those sales? Some were unable to activate their phone for hours, some for days. I would bet they have gotten pretty close to the 1mil mark to end users. There's hardly any Apple stores with any in stock and AT&T stores are just about out as well.

Wirelessly posted

:heads to the fridge:

Did you guys see Apple stock today? AAPL down $15.00 - opened at $147.98
AAPL - Apple Inc. - Google Finance

Apple sux!!! Go Rim Go....

Three cheers for thread crap.

Shame that Apple is MacDesperate to inflate their numbers. That being said, if Apple had INDEED unleashed a superior product - their gimmicks would not be needed to prop up their stock. As a previous IPHONE owner (I went from a Pearl to the IPHONE to a Curve) I am here to tell you ALL - the IPHONE is MacGarbage............

Just my $.02

A sale is a sale is a sale. I could care less about an iphone anyways.

After taking a $9 billion dollar quarterly loss.........I am sure the accounting team at Wachovia is (like Apple) wondering if the accounting tricks were really beneficial in the long term....

You're scaring me. I bank with Wachovia.

The thing is, people compare Apple and their 1 million iPhones to RIM's 16million subscribers. HUGE difference there. RIM has sold tens of millions of devices in the last 24 months.

once again, key word, subscribers!!

And 10 million in 2 months, yet we don't see people lining up in stores waiting for a blackberry? Odd huh?

thats marketing for ya!

its my thread and I say what he posted is apple related so I will allow it as non crap.

Not to mention Steve is my friend and if he wants to crap my thread its fine with me.(y)

I am tired of the iPhone. I field close to a hundred calls a day "do you have any iphones in stock" Nope. "when will you have them" Don't know. "when was last time you had them" July 12th day after release.

If you want one go to an APPLE store they are the ones getting regular shipments. If you go toan ATT store do direct fulfillment yo will get it faster. Order the 16GB white 3-5 business day turn around. 8GB and 16GB Black 7- 21 days. go figure

Direct fulfilment orders will be filled before ATT store get them in.

I am also getting tired of BB 9000 inquiries. I do