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August 13, 2008, 10:00 am

Analyst: Apple will sell 4.47 million iPhones this quarter

Piper Jaffray analyst Gene Munster has upped his estimate of the number of iPhones he expects Apple to sell in its 4th quarter, from 4.1 million to 4.47 million, according to a report to clients issued early Wednesday.

In the same period last year, Apple (AAPL) sold 1.12 million first-generation iPhones.

Munster’s new estimate is based 1) on Apple’s report that it sold 1 million iPhone 3Gs in the three days following the device’s July 11 launch and 2) on 25 hours of in-store checks across the United States conducted over the past two weeks.

His team counted sales in both flagship and “regular” Apple stores and concluded that Apple sold an average of 95 units a day in each of its 188 U.S. stores over the next 27 days. He combined these results with estimates of the number of iPhones sold at AT&T’s 2,200 outlets and the number sold by overseas carriers to get a grand total of 4.47 million.

On Tuesday, Fortune.com reported on the findings of an independent analyst, Michael Cote of the Cote Collaborative, who estimates that 3 million units were purchased worldwide during the iPhone 3G’s first 30 days on the market. (link)

Piper Jaffray’s estimate is probably conservative, says Munster, because it doesn’t take into account iPhone sales in the 22 additional countries scheduled to start carrying the iPhone on Aug. 22. Moreover, he reduced to 31 his estimate of the number of iPhones sold per day for the remaining 51 days in the quarter, which ends on Sept. 30, based on a 10% falloff in sales his team observed between the first week of observation and the second.

The charts below summarize his findings:

Well not in India where they have launched the 16 gig at nearly USD 900

Posted By Gaurav , Delhi , India : August 21, 2008 11:36 am

Why don’t you change the name of this blog to iPhone 2.0? You’d think that this is the only product Apple has ever manufactured. Zzzzzzzz….

Posted By Ugh. SFV, CA : August 19, 2008 6:04 pm

The big questions are:

Is this what it looks like for Apple to begin dominating mobile?

Will Apple be to mobile as msft is to PCs?

Is OS X going to displace Windows as the world’s dominant platform?

Posted By pk de cville, VA : August 13, 2008 6:41 pm

With such loose projections, he really could have left the number at 4.1 million. 300,000 or so short isn’t going to mean very much to WS or investors. Munster should have gone wild and said 6 million to give investors a quick thrill. I’ll just be happy if the 4.1 million number is true. Still, I’ve heard that these numbers are the least expected to make an impact on smartphone sector share. RIM is amused at Apple’s feeble attempt to take away their crown and it’s unlikely to happen this year.

I’m not sure what WS is going to make out of these advance iPhone projections anyway. Probably nothing. Apple is going to have to sell desktop and notebook computers along with classic iPods in great abundance to make the stock price move upward. People keep forgetting that Apple is not just a mobile handset company.

Posted By Constable Odo, Queens, New York : August 13, 2008 2:06 pm

Target price, anyone?

ex ped: Piper Jaffray’s target price is unchanged at $250.

Posted By Mike, Fairfax, VA : August 13, 2008 1:18 pm

Well, it’s all a guessing game anyway as there are too many variables. Shortages are obviously one, but that is countered by the fact that stores now have extended hours (I wonder if Gene’s analysis factors the new or old opening hours). AT&T also had its *own* shortages - I know this first-hand as the company I work for had a waiting list trying to order several iPhones for the business plan. (Though here we have yet another complication, that Apple counts iPhones channeled through carriers as “sold” the minute they are ordered). Then, we have the upcoming international rollout that’s a bit fuzzy, as the countries have not been finalized. Finally, the BestBuy announcement just now opens a *huge* new channel - but will we see iPhones in BestBuy stores in September before the quarter is over?

The way I look at it, such predictions are a bit pointless until we hear the next tangible news from Apple. I’m actually much more interested in how the *next* quarter is going to play out, with Christmas sales, new countries, and continued flow of new customers whose contracts with other carriers expire…

Apple will obviously blow away past their 10MM number by end of year; the question is by how much (and by how much people generally expect them to do so now).

Posted By Roman Rubinstein, Cambridge, MA : August 13, 2008 12:10 pm

While it’s nice that Munster actually does some math, his methods are wholly unscientific. I’ve followed some of his misadventures in data gathering before, and he’s often on the low-ball side once Apple comes in with real numbers. Granted, he claims to aim for the conservative side with his “methods”.
Murphy Mac - 100 Screencasts for OS X

Posted By Murphy Mac, Charlotte, NC : August 13, 2008 12:04 pm

With Best Buy leaping into the fray, this number is bound to increase.

Apple has once more knocked it out of the ball park….

Posted By Sacto Joe, Sacramento, CA : August 13, 2008 11:43 am

Did he take into account the number of days iPhone was not available at the stores?

ex ped: Since he was counting sales, one assumes that was factored in. He points out that there were no iPhones sold for the first 10 days of the quarter, but says nothing about phone shortages.

Posted By Jim : August 13, 2008 10:35 am
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Philip Elmer-DeWittSilicon 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.
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