iPhone suppliers expect to ship 10 million units by Q3 [Update]
[Update: Barron's Eric Savitz suggests here that when DigiTimes writes "total shipments of 3G iPhones are expected to top 10 million units in the third quarter" it means BY the third quarter, not IN the third quarter. We suspect he is right. Headline and body of text corrected accordingly.]
With the simultaneous launch of the iPhone 3G in 22 countries on July 11, Apple’s Taiwanese suppiers are anticipating a bigger-than-expected ramp-up in the third quarter of 2008, according to a report Thursday in Taipei-based DigitTimes.
DigiTimes’ report is based on an article in the Chinese-language Commercial Times, a publication with unusually good sources among Apple’s far-eastern component manufacturers and assemblers. It quotes an unnamed supplier to the effect that these component makers expect to ship 10 million units to Apple before Sept. 30.
Apple’s (AAPL) oft-repeated target is to sell 10 million iPhones in all of 2008. As of June 9, the company had sold 6 million first-generation iPhones, according to Steve Jobs. The company reported more than 3.7 million sold in 2007, which means some 2.3 million have already been sold so far this year.
DigiTimes also translates and reprints a list of the iPhone’s suppliers that was compiled by Commercial Times. We’ve copied it below. As AppleInsider notes, Infineon (IFX), Broadcom (BRCM) and Foxconn (Hon Hai) look like the big winners.
Most of your reports are good and provide useful information. Appreciate it !
Doesn’t On2 supply Infineon with their codecs…which means better video quality for the new iphone as well?
Here is an interesting thought…
If Apple sells to the Mobile carriers, doe s10M shipped = 10M sold? (At least to Apple)
Philip - can you answer this for me?
thanks
ex ped: As I understand it, Apple counts as sold 1) iPhones sold at Apple stores (online or brick ‘n mortar) or 2) shipped to carriers.
Apple could easily blow those the 10M estimates… the big question is by how much? China, in particular China Mobile plus Russia with VIP and MBT are the big opportunities. The people over there are used to paying big amounts for their phones.
There are some impediments. There is not 3G foot print in China, except for CDMA2000. Also, could the supply chain get strained. Apple could easily surpass the number of iPods it sells… > 20M in the next 12 months.
GOOD JOB PHILIP! Great news.
Thanks for diging it up!
This is one of the things I noticed in the keynote, how Jobs said they only expected (something like) 24 markets this year, and will be in 20+ on July 11, and almost 80 by year-end.
If this is true, it might blow away a few people’s estimates. :)
Of course - we do have to keep in mind that shipping is not sold. But I would be happy wit 8M sold in calendar Q3.
PED, an excellent report.
Posted using an iPod Touch
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Silicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
On2 look out.