Apple: 1 million iPhone 3Gs sold
Defying sluggish sign-up procedures and a worldwide crash of its computerized activation system, Apple sold its one-millionth 3G phone Sunday, three days after its debut, according to a company press release Monday morning.
“iPhone 3G had a stunning opening weekend,” said Steve Jobs, Apple’s CEO. “It took 74 days to sell the first one million original iPhones, so the new iPhone 3G is clearly off to a great start around the world.”
Although at least one analyst had predicted that Apple and its partners would sell a million units worldwide at launch, a survey of stores conducted by Piper Jaffray’s Gene Munster put sales at less than half that many.
In a report to clients issued a few hours before Apple’s announcement, Munster had estimated that Apple had sold about 425,000 iPhones worldwide and that it would take Apple at least 17 days to hit the one million mark.
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 (AAPL) may still be in transit.
Indeed, Munster makes the same point in a revised report issued to clients later Monday morning. He also speculates that sales must have accelerated over the weekend as Apple cleared up its iTunes activation problems:
“We underestimated the number of phones sold per hour throughout the weekend and Apple’s recovery from activation issues. While we believe Friday’s 24 phones per hour is probably a close guess for Friday, the number likely increased significantly on Saturday and Sunday, well above our previous estimate of 28 phones per hour.”
For a summary of the original Piper Jaffray report, see here.
In a second press release, Apple announced that iPhone and iPod touch owners have downloaded more than 10 million applications from the App Store since it launched last week. Steve Jobs proclaimed the online store, which offers more than 550 programs for wireless download, “a grand slam.”
I’m 37 and find it so sad that a 28-year old would find it necessary to make such an inane post on a financial blog. If your social life revolves around putting down others for simply buying a product in a sad attempt to boost your own self-worth, the iPhone is the least of your ‘pressing issues’.
Dan Lee, I have no idea what you mean by “Limbaughed butts”, but if you were informed, you would know that Rush Limbaugh is a die-hard Apple fan. He owns something like three Mac Pros and when the first iPhones came out last year, he bought ten of them and gave them out to his listeners. He has stated repeatedly on his show that he would love to advertise Apple on his program, but SJ won’t have anything to do with it.
Anyway, I am a Rush Limbaugh fan and I own Apple stock and I use a Macbook Pro. I have already informed my family that the only thing I want for Christmas this year is a new iPhone.
I’m 28 and find it so sad that people want a dumb cell phone this bad. If your social life revolves around waiting at the Apple Store for their newest product(s), obtaining an iPhone is the least of your ‘pressing issues’.
Who really cares about the total number of units sold…does it really matter?
The fact is is that more and more people are discovering Apple, discovering quality, and having fun with technology.
Good for Apple on delivering a product that people want.
So, people are complaining about high gas prices, losing their jobs, and so much more, yet they can afford to buy a new phone with the cheapest one costing $199. Gramm is correct, this nation is full of whiners.
I tried to buy iphone for 3 days now. Hoping it won’t be a line. But still an one hour wait in front of Pasadena, CA store at 4pm Mondy. May be tomorrow.
I wonder how many, if any of those one million phones left the dock in Asia bound for CARRIERS/PARTNERS prior to July 1 which would put those sales into the quarter that will be reported next Monday. Maybe a pleasant surprise? If not then the guidance should be just so much better.
I can hear the denial now.
…..Apple only sold a million iPhones in three days….Nokia sells that many handsets in three hours….Apple’s servers give up the ghost under a moderate load of a few activations…..Amazon can handle thousands of transactions a second, day in and day out….So what if users downloaded 10 million apps from the App store…..There’s only eight halfway decent apps out of 800 and the rest are all crap…..WinMo has 80,000 apps and they’re all better than Apple’s eight good ones….All the pent-up demand for the iPhone 3G will be gone by tomorrow and that’s all they’ll sell for the rest of the year…..WinMo 6.2 is coming and it’ll be more powerful than OSX Mobile by at least 10X.
|__________
It doesn’t matter how well the iPhone sells or how many people love the App store, Apple is evil for excercising too much control over it’s products…..Only fools wait on line for anything…..The iPhone will fail in Japan because every handset in Japan is far more advanced than the iPhone and have better OSs…..Might as well quit the handset business now, Apple…..The iPhone 3G was released amid much hype and absolutely nobody took notice.
The point of the App Store wasn’t to be a profit center. The idea all along was to widen it’s developer base while putting the majority of the money from sales back in the developers pockets. Apple takes a 30% cut to cover the costs of running the site, but thus far there are no numbers on whether sales actually do cover the cost of distribution.
In light of that, the success of the App store should probably be gauged by it’s popularity and load, rather than any dollar figures generated by its sales. In that sense, it has already wildly exceeded expectations.
Okay, so 10 million downloads sure makes it sound like Apple hit it out of the park, but did they make any money? With 200-some apps going for free, I wonder how many of those 10 mil were actually bought and paid for.
Let’s not kid anyone here. The 3G iPhone is NOTHING like full internet speed unless you’re using dial-up or your internet service sucks.
I always find it stunning that Apple can create something so creative and elegant, which redefines the market, and there are so many who sit on their Limbaughed butts and crab about there being such overwhelming demand that the servers temporarily go down. Or, they begin to devise a scenario by which Steve Jobs could be criminally indicted for that level of competence, presumably because of the contrast problem. These are not natural Apple customers. They belong to Microsoft and should be sentenced to stay there.
You know, I don’t really care about the sales. This new phone with the new App Store is so incredible that everyone is going to want this phone. The amount of apps is incredible and what they can do is basically a social shift in the way we will interact. Kids, 20 & 30 somethings will drool over this phone. That’s the target market. Look at Apple’s sales after a few months and tell me it isn’t incredible.
Munster has a history of not being a reliable source — so why continue to post his guesstimates? As one example, stores selling the iPhone in Germany are closed on Sundays, yet Munster’s table figured in Sunday sales in Germany.
Is this really that impressive? The new iPhone cost half what the original cost and was released worldwide. Also, I’d like to personally thank Steve Jobs, you completely baffle me with your utter stupidity. My phone, along with millions of others I’m sure, was unusable for a majority of the day Friday. Next time hype the new software like it’s the second coming of Christ and then be “blown away by the response”.
Apple would have sold 2 million 3G iPhones but the Apple and Carrier stores sold out by Sunday morning. They will likely sell out for a few more weeks. Apple didn’t expect the huge web traffic from the Apps Store that is why the servers crashed. Apple needs more servers because they will sell more iPhones.
The 3G iPhone is awesome. You can view full internet at fast speeds. Check out this blog: http://www.sports–today.blogspot.com
Wasn’t there rumors that Apple orderered 1.5M iPhone 3G’s for the launch, and then ordered 500K more?
Considering most Apple stores were sold out (last night’s Apple’s iPhone inventory page), almost all AT&T stores were sold out, and many foreign partners were sold out, how can 1M (in customers’ hands) be surprising?
I think they will sell another million by this weekend - that’s the complete launch inventory. Then, it may become like Wii.
First, note that Apple wouldn’t lie about something like this. It would be too easy to get caught and the SEC would be on their case.
More importantly, let’s put it into perspective. At 1 million phones in the first weekend, has there EVER been an electronics product or home appliance that ever sold at that rate at launch? I sure can’t think of any. Even PSP, Xbox, etc didn’t match that, IIRC.
To all the financial geniuses out there, “revenues” have nothing to do with $ received from AT&T. AAPL recognizes the units as shipped and sold when they are put on the truck at the loading dock at the manufacturer.
It’s a neat trick shipping a handful of phones to AT&T stores then claiming they are “sold out everywhere”. The “direct fulfillment” thing is interesting. Someone - maybe someone like Gene Munster - should take a break from issuing wildly inflated price targets and actually take a look at AAPL’s business model. Apparently that’s the job of the buy-side analysts. Munster’s job is to be a cheerleader.
Steve Jobs is right with the numbers.
First, AT&T and others PAY APPLE full price for the iPhone, then sell them to their customers. Therefore, the iPhones to AT&T already made money for Apple as if they were already sold to customers.
Second, AT&T and others are essentially already sold out on every day the iPhone has been on sale. I tried on the third day (Sunday) to get an iPhone at my local AT*T wireless store, but despite opening by 11 AM, it was sold out by 2 PM (in 3 hours).
Sales of the iPhone are HOT!!!
There’s a thing called the SEC. Have you heard of it?
Let me spell it out: If a company is publicly traded and claims to have sold twice what it sold, all the investigators formerly busy studying backdated options are now available for a full frontal assault.
Why would apple care if it’s new users or upgrades? they don’t receive any money from the contracts. All Apple cares about is moving phones.
Is that truely impressive considering it launched in what 74 countries? I’d like to see the breakout for North America. I have a feeling the bulk were current users upgrading and not new users / contracts.
I’d also like to see how many Apps were purchased and not freeware. Out of the Apps released maybe 5 have real business use. Iphone is and will remain a consumer lifestyle / entertainment device.
ex ped: It only launched in 21 countries this weekend (France’s launch was delayed). The rest of the 70 plus countries get their phones later this year.
I am curious how many of those 1M phones are sales from AT&T for “direct fulfillment” because they ran out of phones. Many people are reporting the status of their order as now “backordered”. Do they count the sale on Friday when the customer paid or when the item is shipped…
ex ped: You may be on to something. As I understand it, Apple counts its own sales at the register, but it counts sales to carriers when they (the iPhones, not the carriers) leave the loading dock in Hong Kong. Eager to hear how Munster explains the discrepancy.
Munster is better than many analysts who follow Apple, but his survey techniques are far from reliable. They’re actually quite crude.
- Murphy Mac
Um..who cares how much “detail” Gene was able to glean from his huge sample size of 283 iPhone customers in two cities. It almost sounds like you are trying to pooh-pooh OFFICIAL sales numbers straight from the horse’s mouth. But we know that couldn’t possibly be the case. I mean, Mr. PED would NEVER try to spin things in the direction of FUD where Apple is concerned…right?
This corrected posting has another error. Originally, the estimate was “450,000 worldwide,” not “45,000″ as this post reads. Please fix if this is an incorrect statement.
ex ped: Thanks. Fixed. Moving too fast here.
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The point here is not having a “Typical Mobile phone”so what?! people don’t understand that apple customers buy iphone,ipod,etc to connect them self to a creative,innovative and “COOL” culture of Apple..thats why people stays in line 4 in the morning just to be among those COOL apple users of the world.