Analysts Rain On Apple's iPhone Parade - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
5/28/2008
02:40 PM
Eric Ogren
Eric Ogren
Commentary
50%
50%

Analysts Rain On Apple's iPhone Parade

With iPhone sales petering out due to their growing unavailability, Apple may not sell 10 million iPhones in 2008, say analysts. What spurred Jobs to believe that Apple could attain that number, when to-date the iPhone has sold only 5.4 million? Discuss.

With iPhone sales petering out due to their growing unavailability, Apple may not sell 10 million iPhones in 2008, say analysts. What spurred Jobs to believe that Apple could attain that number, when to-date the iPhone has sold only 5.4 million? Discuss.Ars Technica has a nice write-up of the current state of iPhone sales and the probability that Apple will reach the 10 million unit mark sometime in the next seven months.

Here's the deal. Apple sold 3.7 million iPhones in 2007. That was far and above the initial target of 1 million devices by the end of the year. Back at Macworld 2007, Jobs said that the iPhone would sell 10 million units during the 2008 calendar year. Keep in mind, this figure doesn't include the 3.7 million phones it sold last year. So far, Apple has sold just 1.7 million iPhones in 2008 (through March). That leaves Apple with 8.3 million to go to reach Jobs' bold prediction. Some think Apple will do it, others don't.

Ars cites a New York Times prediction:

"They're going to have a difficult time" hitting that number, said Edward Snyder, an analyst at Charter Equity Research. He said that Nokia, the world's largest maker of cell phones, sells more phones every week than Apple has sold since the iPhone's introduction.

Nokia may indeed sell a lot more phones, but keep in mind that it is the No. 1 global player. It had better be outselling Apple by a mile.

Here's my take. I am sure you recall that the iPhone was initially sold only in the United States. Last November, it went on sale in the U.K., France, and Germany. Sales overseas in those countries haven't been stellar, though the network operators claim that sales are "within expectations." Even with this limited distribution, Apple has moved 5.4 million iPhones. But that is set to change.

If you've been paying attention to the news at all, you'll see that Apple is striking distribution deals with just about every major network operator on the planet to sell the 3G version of the iPhone.

If the 3G iPhone lives up to what the rumors purport it to be, it could very well be the hottest ticket of the year. Why? Because literally billions of people will have access to it, rather than the several hundred million in the United States and Western Europe. With a big feature set (3G, GPS, third-party apps, etc.) and global distribution, I think Apple has a chance of pushing those remaining 8.3 million iPhones out the door and into the hands of a mobile-hungry public.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
News
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
Slideshows
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
White Papers
Register for InformationWeek Newsletters
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll