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Math on iPhones Just Doesn't Add Up?

Tech Dirt is reporting that recently announced numbers by Apple and AT&T suggest that there is a large gap (1.7 million) between the number of iPhones being sold and those being activated. Taking into account factors like the iPhone launching outside the US and a 20% estimate of people buying the iPhone just for the purposes of unlocking, there are still 700,000 iPhones unaccounted for. "[...] suggesting that they're sitting on store shelves, piling up as unsold inventory. That number suggests at least some gap between perceived demand and actual demand -- while also raising questions about how much effort it will take to eat through that inventory."

289 comments

  1. i know! by vanDrunen · · Score: 5, Funny
    1. Re:i know! by flyingsquid · · Score: 5, Funny

      The Apple fanboys don't actually use them. They just stare, doe-eyed and utterly enraptured, at the sleek lucite and brushed aluminum, totally lost in the beauty of its industrial design. Occasionally they caress the device or whisper sweet nothings to it.

    2. Re:i know! by Anonymous Coward · · Score: 5, Funny

      my precious

    3. Re:i know! by jellomizer · · Score: 2, Insightful

      That brings up an interesting point...
      Perhaps some poeple who bought 2 Baught one to use and kept one in its origional package as a collectors item... Like some colectors do with Comics, or with some toys.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    4. Re:i know! by Anonymous Coward · · Score: 2, Insightful

      Nope. It's that nobody wants to do business with AT&T, which is the only phone service that will allow one to USE an iPhone.

      Yet.

    5. Re:i know! by tgd · · Score: 1

      Well it is good for surfing porn at work.

      (did I just say that?)

    6. Re:i know! by methano · · Score: 1

      It's glass, not Lucite. No fanboy is gonna stare at Lucite.

    7. Re:i know! by Hal_Porter · · Score: 0, Redundant

      Precioussssss

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    8. Re:i know! by camperslo · · Score: 2, Insightful

      There probably are some phones that people got as gifts over the holidays but haven't activated yet due to waiting for the contract with a prior carrier to run out.

      Another possible factor is that the numbers used may be an AT&T report of new customers, excluding people who were already using AT&T cell service before getting an iPhone.

    9. Re:i know! by ContractualObligatio · · Score: 5, Funny

      Actually, I didn't even take mine out of the box. I know it was perfect the day Steve Jobs announced it, why sully it with the imperfect air which I breathe? Let it's perfection remain untarnished for ever more!

    10. Re:i know! by mstrebe · · Score: 1

      It's true, that's what I do with mine. I'm gazing lovingly at it right... right... right... now. Yeah, that was good.

      --
      aka Matthew at SlashNOT/!
    11. Re:i know! by nilbud · · Score: 1

      iSuppository

      --
      never let a man put his dirty how-do-you-do into your bajingo
    12. Re:i know! by Anonymous Coward · · Score: 0

      That's interesting, because every store I've seen selling them had a stipulation that they'd only sell one per customer.

      I mean, I suppose that somebody who's totally crazy could go to two separate stores just so they'd have an extra iPhone to keep in storage, but I can't imagine that there would be so many people like that that it'd even be statistically significant.

    13. Re:i know! by Anonymous Coward · · Score: 3, Funny

      Like some colectors do with Comics, or with some toys.

      She's an ACTION FIGURE, you bastard!
    14. Re:i know! by el+cisne · · Score: 2

      I know for a fact that some have made it into mainland China. Don't know how many, but there are some going to other non-official countries.

    15. Re:i know! by Anonymous Coward · · Score: 0

      Maybe they did the math with Excel.

    16. Re:i know! by maxume · · Score: 2, Funny

      And then the sun exploded.

      --
      Nerd rage is the funniest rage.
    17. Re:i know! by helpy · · Score: 2, Informative

      I purchased and activated through AT&T my first iPhone in September. Its touch screen failed and I received my second iPhone in October. That unit locked up and they gave me a third iPhone in December. So I have one account with AT&T yet 3 iPhones through Apple. If this situation of bad units is larger than reported, it's quite possible that several hundred thousand units can be accounted for as direct, free, replacement units (not sold).

      --
      Mike Helpingstine Chapel Hill, NC
    18. Re:i know! by Reality+Master+101 · · Score: 4, Funny

      You know, I have no love for Apple (I actually hate the company), but I did buy an iPhone, because it has the best browser and best map application (I wanted a browser with a phone, not a phone with a browser).

      That said, I have to say one thing. The iPhone came in the nicest box and packaging I've ever seen. It's almost decadent, how thick the cardboard is and how nicely constructed it is. The iPhone comes cradled in this thick, thick, clear plastic holder. The manual came in an elegant black envelope. You have to see the thing to believe it.

      I seriously can't bring myself to throw it away. It's utterly useless at this point, but it's so nice, it feels like I'm being wasteful by putting in the trash.

      It actually gives me another reason to hate Apple. There is absolutely no reason that this box is necessary, and it really is a waste of resources. I think they used an entire tree to produce the box.

      --
      Sometimes it's best to just let stupid people be stupid.
    19. Re:i know! by Anonymous Coward · · Score: 0

      They bought them and died of AIDS before the could activate them. The fucking babber-stabber's.

    20. Re:i know! by flappinbooger · · Score: 4, Insightful

      Yeah, well, it's kinda like the difference between a key for a Ferrari vs the key for a Ford.

      Style, man. STYLE

      You may hate Apple for doing the box that way, but to ME, it shows a company going all out to make something the best they can possibly make it the moment the end user comes into contact with the product.

      Fine wine doesn't come in a plastic jug, does it? So, for Apple, a fine electronic device such as the iPhone should come in a nice box, too. Macs are expensive yet aren't the fastest computers out there, despite the hype. But you couldn't get a mac user to switch to a PC just because it was cheaper or faster. Why? I think it's the experience. Any Mac-o-philes care to chime in?

      No, I don't have an iphone, I don't own a mac, and I'm not a mac fanboy, either.

      --
      Flappinbooger isn't my real name
    21. Re:i know! by Anonymous Coward · · Score: 0
    22. Re:i know! by p0tat03 · · Score: 2, Funny

      You idiot, even the box is holy and must be protected! I filled an airtight plexiglass box with air from my local Apple Store (approved by The Jobs Himself!) and put my iPhone box in there. It must immerse in Steve's blessed air to maintain its perfection!

    23. Re:i know! by sumdumass · · Score: 1

      It's probably more like people have broke them or hacked them and replaced the phones because they were bricked with an update.

      I know one guy who has went through three phones now. One he hacked and it became bricked, another was ran over on accident by his spouse and car and the third still works. While the hacked on is supposedly accounted for, the damaged one probably isn't. All he had to do was pull the sim card out of the broken one and place it in the new one to get it working so it wouldn't have been activated.

    24. Re:i know! by DarthJohn · · Score: 1

      Ferrari is to Ford as Apple is to $PC_RESELLER?

      Ferrari's are prettier and more powerful than Fords. Their style is backed up by actually performing better than the lower cost alternative.

      Macs are prettier than PCs, but not as powerful. You get something that looks nice, but is less capable? I don't want to pay the premium for style. To each his own I guess.

      never mind... I shouldn't try to correct a car analogy... this is /.

    25. Re:i know! by armada · · Score: 1

      IMO they are headed to other markets like SA and CA. The unlocked phone business there is huge compared to here.

      --
      "This message was sent from an Apple //GS"
    26. Re:i know! by Paradox · · Score: 1, Insightful

      Ferrari's are prettier and more powerful than Fords. Their style is backed up by actually performing better than the lower cost alternative.

      Macs are prettier than PCs, but not as powerful. You get something that looks nice, but is less capable? I don't want to pay the premium for style. To each his own I guess.


      Your one-dimensional analogy burns my eyes.

      Yes, you can build better desktops than mac desktops. Yes, some laptops can outspec mac laptops for less (although usually this happens with dell where they do this by sacrificing the form factor, leaving you with a thick plug-to-plug behemoth). But the PCs can't run mac software, and right there that's all the performance gap anyone needs.

      Sorry, but OSX or gtfo. And the virtualization for other OSs is cheap and easy on a mac, so it's hard to argue against it now. Please let this tired argument die out and instead argue on less tired freedom and openness and flexibility grounds as opposed to "zomg my video card is better!"
      --
      Slashdot. It's Not For Common Sense
    27. Re:i know! by armada · · Score: 1

      What you and most people on slashdot dont realize (or even I for years) is that neither apple nor microsoft nor dell are in the market of selling coputers to epic geeks (pretty much anyone reading slashdot). They are in the business of selling computers to consumers. To consumers that are not as savy as your and me a mac IS more powerfull (the ability to do work). If you are honest with yourself and not a fanboy of any flavor you will see what I mean. If you are not honest with yourself and or a fanboy then don't waste my words with your mind.

      --
      "This message was sent from an Apple //GS"
    28. Re:i know! by cowscows · · Score: 1

      Yeah, but for many people, the "power" of a computer is not just the sum of all of its tech specs and how quickly it can shuffle electrons around. The appeal of Macs has historically been more about the operating system, and less about the plastic/metal that it's wrapped in. The fact that the case is cool looking is just a bonus.

      Of course, when you move into the realm of consumer electronics, the appearance of a device becomes even more significant for most people, particularly when it's something that they carry around in public. But for all its clean curves and sleek colors, the iPod wouldn't have been as successful if it didn't offer compelling functionality.

      To take the car analogy a little further, Ferrari doesn't just take a Ford chassis, shove a more powerful engine in it, swap out the logo, and jack up the price. Any old moron could put a big-ass engine on a car. Instead, Ferrari (hopefully, I've never driven one) puts a better steering system, more suitable suspension, better brakes, etc. They're not just selling pretty and powerful, they're also selling drive-able.

      Apple skimps a little bit on the powerful, but puts plenty of effort into pretty and drive-able.

      --

      One time I threw a brick at a duck.

    29. Re:i know! by daBass · · Score: 2, Interesting

      Macs are expensive yet aren't the fastest computers out there, despite the hype. But you couldn't get a mac user to switch to a PC just because it was cheaper or faster. Why? I think it's the experience. Any Mac-o-philes care to chime in?


      The most important reason for many people buying - and loving - Macs is Mac OS X, which indeed is the experience. But it doesn't stop there, a great design case helps too. You won't find any ports on the back of any Mac laptop (so annoying on Dells I have worked with) and you'll find USB ports on *both* sides; a feature you wouldn't think of but it does make a difference. The multi-touch trackpads are fantastic. Apple displays have exactly one cable coming out of them - splitting up into DVI, power, USB and Firewire (there are hubs for both on the display) at the computer end; no bundle of cables on your desk. And for the most part, it really "just works(tm)". People are willing to pay a premium for that.

      That said, the premium isn't that much and while you can get a dirt-cheap Dell, you get what you pay for. If you compare them like-for-like on specs and build quality - instead of just "what's the cheapest I can get" - Macs actually come out quite favorably and since the Intel switch they consistently get higher marks for performance than their Wintel counterparts. And if you have some serious dough, there is nothing that matches the Mac Pro's power available from anyone off the shelf. So I don't quite agree with you saying they are "not the fastest computers" or that "Macs are expensive"; It'll be hard to find a faster one that is quite as small as the Mac Mini. Or a faster all-in-one or similarly specced mini-tower at the price of an iMac, or a faster laptop than the MBP that is actually mobile (get out of here, Alienware) and doesn't cost a lot more and nobody beats the Mac Pro's performance at any price.

      Now if only they would put something with the specs of the iMac into a small tower and sell it for a good price, that would be nice.

      While I had troubles initially with Leopard, somehow they never occurred when I didn't have Parallels running Windows. (I am Java dev, but need to test on Windows too for work, as well as use SQL Server, I don't actually use it to run any apps for myself.) A couple of post-Leopard Parallels updates later I have none of the crash/hang issues anymore. Hmm, I wonder if it really was leopard that was being unstable. Granted, the OS should stop Parallels from being nasty, but virtualization will always be terribly invasive and deliberately hacking of the host OS.

      I own a MacBook Pro, Mac Pro and my wife uses my old PowerBook G4 and while I will tell people why I like them and why I think they will too - I do not consider myself a fanboy and can certainly see Apple's flaws. The good simply outweighs the bad.
    30. Re:i know! by Lars+T. · · Score: 1

      Ferrari is to Ford as Apple is to $PC_RESELLER?

      He said "a key for a Ferrari vs the key for a Ford". What are you, an average PC user?
      --

      Lars T.

      To the guy who modded me down from perfect to terrible Karma - Apple haters still suck

    31. Re:i know! by that+this+is+not+und · · Score: 1

      I think they used an entire tree to produce the box.

      Trees don't get 'used up.' At least, not the kind of tree grown to make pulp for paper. In fact, the more paper we use, the more land that is allocated to growing and regrowing forests of pulpwood trees. It would otherwise be used for something that probably reduces greenhouse-effect gasses less, like cattle or seed crops.

      Paper is a renewable resource. Even if it's not recycled.

    32. Re:i know! by that+this+is+not+und · · Score: 0

      The PCs can run software far better than Mac software. You can run Windows (if you must) or a higher quality operating system like Linux or Solaris. Solaris is an excellent and powerful OS and it's build quality makes MacOS (and Windows, of course) look like a shaky wobbly shanty. I run NetBSD on my machines which is another excellent alternative.

      Of course, you can run NetBSD, Linux, or Solaris on newer Apple hardware, too.

    33. Re:i know! by Reality+Master+101 · · Score: 1

      I think they used an entire tree to produce the box. [...] Trees don't get 'used up.' At least, not the kind of tree grown to make pulp for paper.

      Sheesh, it was a joke! Laugh.

      But anyway, maybe I phrased it poorly, but the point isn't that some poor 2,000 year old redwood got chopped down, but that a lot of resources went into the box. It does take energy to transform a tree into a box, and it takes energy to transform a box back into recyclable paper.

      I don't really care about the environmental effect that much (again, it was a joke), but I'd really like the $5 back that it probably cost to produce the box. I could buy lunch with that.

      --
      Sometimes it's best to just let stupid people be stupid.
    34. Re:i know! by dwater · · Score: 2, Funny

      ...ran over on accident by his spouse and car Spouse *and* car ... wow. No wonder.
      --
      Max.
    35. Re:i know! by rtechie · · Score: 0
      I don't know why I feel compelled to respond to this crap, but...

      If you compare them like-for-like on specs and build quality - instead of just "what's the cheapest I can get" - Macs actually come out quite favorably and since the Intel switch they consistently get higher marks for performance than their Wintel counterparts. And if you have some serious dough, there is nothing that matches the Mac Pro's power available from anyone off the shelf. This is simply not true. Apple laptops and desktops (in particular the laptops) are built by the same OEMs that build Dell laptops, often on the same assembly line. The build quality is the same. Apple laptops have better industrial design, but that's not the same thing. Macs of comparable performance are significantly more expensive than their Dell and HP counterparts. It's just a fact.

      Also, there is the implication that Apple is the only "boutique" PC vendor. There are plenty of other vendors, like Alienware,that cater to this market and their products are comparable (in terms of industrial design) to Apple products. In terms of performance, powerful computers from Alienware, Falcon, etc. stop all over the Mac Pro.

      Or a faster all-in-one or similarly specced mini-tower at the price of an iMac, ... Now if only they would put something with the specs of the iMac into a small tower and sell it for a good price, that would be nice. iMacs are a HUGE ripoff. You get an all-in-one with a relatively slow CPU, a slow hard drive, (here's the important bit) an incredibly crappy video card, and a double-price LCD screen (it's a nice screen though). You can't upgrade anything except the memory. This sucks. You can generally buy a SUPERIOR PC (it will actually have a decent video card and hard drive) for 60% of the price from Dell or HP.

      iMacs were a scam foisted on Mac users to force them to upgrade their monitors at the same time as their desktop PC (the monitors usually outlast the desktop) to make Steve Jobs more money. That's why you'll never see the mini-tower you want. The mini-tower ALL Mac users want. Steve knows that such a product would quickly kill the more profitable iMac.

    36. Re:i know! by DarthJohn · · Score: 1

      Not my analogy. The post I replied to compared a Ferrari to a Ford (saying Ferrari's are prettier) and then said Apples are pretty. I made the mistake of correcting a car analogy on /.

    37. Re:i know! by daBass · · Score: 1

      Can you show me a link to an Alienware that "stops all over the Mac Pro"? I just configured what seems to be their top of the range "Area-51 ALX CrossFire" similar to a Mac Pro. (both 2GB, 2x500GB, Mac Pro with 2x quad 3.0 and NVidea 8800GT, Alien with ATI 3870)

      The Alienware has 4 cores less, though a slightly higher CPU speed, but the Mac has XEON CPUs which are faster GHz for GHz. I recon the Mac will blow it away and it has the better video card. (just)

      Funnily enough, the Alienware costs over a grand more, for a less powerful machine.

    38. Re:i know! by flappinbooger · · Score: 4, Insightful

      Well, the guy I replied to with the Key analogy was discussing the box, I was sort of equating the key to a car to the box the iphone comes in. To compare the main component (the car, or the iphone) might break the analogy.

      Regardless, I've worked with Italian equipment, and Italians. They are good engineers and take great pride in workmanship. They also are very much into aesthetics and style. Very much. But, the Italian culture is way way different than that of the USA. To make a hasty generality, American engineers always always always focus on function above form. The Italians are so relaxed and laid back, they put things off or get things just good enough and let it go. As long as it just works, and as long as it looks good, it's fine. That's why they only crack down on the mafia when they become embarrassing. Out of sight, out of mind.

      Here's an example. The PLC on a piece of equipment in Europe probably is going to be Siemens. In the USA, the PLC will be Allen Bradley, more likely than not. Well, if we would sell a piece of Italian equipment in the US, we would sell it with AB. They didn't want to completely rewrite the fairly extensive PLC program, so they employed a translation program that converted it from Siemens to AB. Polish it up a bit, and it works. But anyone with a clue who looks at it finds it to be spaghettied up and a clumsy mess. Whether it was spaghettied up and clumsy before, I don't know for sure, but ... Hey, it works! Bon!

      Now, don't get me wrong, the machines were very refined, worked very smoothly, had a lot of ingenious and elegant features, and look quite stylish. And had some not-insignificant shortcomings that you overlook because ... it's Italian and you feel really good about it.

      Now I've figured it out - Steve Jobs is Italian!

      Hey, get ahold of and watch the first episode of season 10 of Top Gear. When Clarkson is driving the Lambo and can't get the gas cap open - That sums it up.

      --
      Flappinbooger isn't my real name
    39. Re:i know! by Tibor+the+Hun · · Score: 1

      You're right on man, but for me, style's got nothing to do with it.
      I'm typing this on my iPod. How many /. posts do you suppose are posted from a zune?

      For me, it's about usability and unix. :wq! ftw!

      --
      If you don't know what AltaVista is (was), get off my lawn.
    40. Re:i know! by armada · · Score: 1

      Did you just call a company with $114,250,000,000 (that billllioon /pinky to mouth corner) in market capitalization a "boutique PC vendor"? Did you then say they are in the same market as a little company that sells specialty gaming rigs? I guess you were compeled to respond to [Crap] with [OverclockedAGP4accelatedHD Crap].

      --
      "This message was sent from an Apple //GS"
    41. Re:i know! by fishtorte · · Score: 1

      At least we know the difference between glass and Lucite.

    42. Re:i know! by cathyy · · Score: 2, Informative

      Indeed. They are widely available, unlocked and pre-loaded with non-Apple extra software, in Thailand as well as China. I would assume them to be just as available in other countries where they are not yet released. 700,000 isn't that many phones to go "missing" to the worldwide market.

    43. Re:i know! by MechaBlue · · Score: 1

      I wouldn't consider myself the average Mac user, so take this with a grain of salt.

      I am a contractor that needs a laptop. I had the following requirements:
      - POSIX environment for development for higher productivity. Linux good, Windows not so much (I wouldn't want to use Cygwin all the time; it's quite usable but it's slow and feels a bit hackish).
      - Low maintenance for lower TCO. Windows good, Linux not so much (I've had too many issues with Linux drivers and updates hosing the system).
      Mac provided both of these for me.

      Apple has put together a system that's powerful, stable, easy to use, and easy to administer. They are continually refining and improving their products, adding new capabilities and streamlining existing ones. If someone else could do it better (or cheaper), I would certainly consider them.

    44. Re:i know! by jsebrech · · Score: 1

      I buy macs for one reason only: no fuss. They just work. The style takes a second place to that. Sure, they look nice, but you can find wintel machines that look just as nice or nicer for less money.

      What does help is that they pay attention to stuff most vendors don't really, like the sound characteristics of a machine. My mini is so quiet that I can't hear it running over the normal background noises (cars in the street). Since it's in my living room, that's a really nice bonus.

    45. Re:i know! by mvdwege · · Score: 3, Funny

      Believe this man! Mod him up! Buy him a beverage of choice when you meet him!

      All joking aside, I ride Italian motorcycles, and by God isn't this post on the money. The engine, the frame and the suspension are a wonderful unit, the cycle rides like a dream, the styling is great. Yet, stupid little design flaws keep cropping up, like the headlight fittings not being designed to hold up under heavy use (my headlight is now fixed to the frame with tie-wrap).

      That's Italian design for you: it does what it's supposed to do, so we it out of the factory. Never mind the details, they're not important to the main purpose of the product. So we get cars that look great, drive great, and have body panels that fit badly; the creaking of the body of some Alfa Romeos can really get on your nerves. Or motorcycles where someone thought it was a good idea to run the cables to the rear light right through the middle underside of the rear fender (my previous bike).

      And yet...there is something in Italian engineering that captivates us fans, and makes us put up with their lackadaisical attitude to details. Damned if I know what it is, but it's there.

      Mart
      --
      "I know I will be modded down for this": where's the option '-1, Asking for it'?
    46. Re:i know! by blgarath · · Score: 1

      Ah, but when my ford breaks, it doesn't cost a year's pay to get it repaired. :)

      --
      PC Tech and Support type person for 18 years.
    47. Re:i know! by DarthJohn · · Score: 1

      heh... same with my PC :)

      not that a Mac would... I've gone too far with this line... time to stop posting in this thread I think.

      note to self... don't post a contradiction to a car analogy on /. even if I'm absolutely sure I'm right... this time I wasn't, but even if I was it's not that important.

    48. Re:i know! by Yonzie · · Score: 1

      A better analogy would be that a Mac is like a Lotus. While the engine (CPU) may be smaller and have less horsepower than the competition, the total output (efficiency) is higher than the competition due to the car being engineered to be light (nice interface (OS)). On YouTube, there's a video with a F40 vs. Elise going around a track. While it's obvious that the Ferrari has way more power, the Elise can almost keep up due to being fastest in the corners.

      The appeal of Macs is partly the nice packaging (the computer), but once you get to know OS X, Windows is just a kludge, and you have difficulty going back. The Lotus is the same, since other fast cars are generally heavy and can be cumbersome to get around the corners. The Lotus drives like it's on rails.

      Disclosure: I switched to Macs 2.5 years ago. I've never even touched a Lotus. I've been a passenger in an F40 once when I was like 12 at some charity-thing.

    49. Re:i know! by SteeldrivingJon · · Score: 1


      Apple's boxes tend to be pretty efficient, actually. The materials they use might be better, but overall they're probably more efficient than other companies that use larger boxes.

      --
      September 2011: Looking for Cocoa/iOS work in Boston area Cocoa Programmer Quincy, MA
    50. Re:i know! by DarkVader · · Score: 1

      I have one friend who is on his second one, and one who is on his fifth. It's kind of an insane failure rate from what I've seen. And the strange thing is that the iPhone feels like a really well built piece of hardware.

    51. Re:i know! by Shag · · Score: 1

      I have to say one thing. The iPhone came in the nicest box and packaging I've ever seen. If you (despite hating Apple) ever buy another product from them, I think you'll find that this is their normal approach to things. Look at it this way: They've gone to the trouble of hiring award-winning industrial designers to create products that are aesthetically pleasing and easy to use - why should the way those products are presented suck?

      I seriously can't bring myself to throw it away. It's utterly useless at this point, but it's so nice, it feels like I'm being wasteful by putting in the trash. Sort of like the little felt-lined case that a fine pen (Cross, Mont Blanc, etc) comes in. You don't want to keep the pen in there, because then you have to get it out every time you need it, and put it back when you're done, and so on.

      I tend to hand onto the original packaging from Apple products because it's a nice way to pack them up if I'm selling them used after getting something new. Just a thought.
      --
      Village idiot in some extremely smart villages.
    52. Re:i know! by ScrewMaster · · Score: 1

      Why not just put it on a rotating pedestal in a helium-filled, climate-controlled transparent case in the center of your living room, so that all and sundry can kneel to it in prayer forever.

      --
      The higher the technology, the sharper that two-edged sword.
    53. Re:i know! by flappinbooger · · Score: 1

      Maybe it's all the posters that were in the bedrooms of impressionable youths showing scantily clad babes on top of Countache's and Testarossa's. Italian = sexy.

      We stopped selling Italian equipment and are building our own.

      I remember one trip I went on, it was me and an Italian fabricator who helped build the machine we were going to go work on. He didn't speak any English, and I spoke no Italian. I pick him up at the airport and we drive to the factory. As we are driving, he says, out of the blue, "When-a we finish the Machine-a, go to Harley Davidson?" I looked at him and said "You have a Harley?" He said "Si! Si! Fat-a Boy-a!"

      We got along well, even though we had a huge language barrier we actually communicated very well. Pictures and pointing.

      After we finished with the work we went to the local Harley store (Near Memphis) and also a sports store. He bought a lot of Harley stuff and a baseball glove for his son.

      I learned a little bit about Italian culture from the last episode of Jeremy Clarkson's "Meet the Neighbours". He asked an Italian why everyone drives fast there, yet are always late? The answer: Authority! "You can't tell me how fast to drive, and you also can't tell me when I must get there!"

      --
      Flappinbooger isn't my real name
    54. Re:i know! by rtechie · · Score: 1

      Funnily enough, the Alienware costs over a grand more, for a less powerful machine. The claim was: "And if you have some serious dough, there is nothing that matches the Mac Pro's power available from anyone off the shelf."

      Cost was not a factor.

      Can you show me a link to an Alienware that "stops all over the Mac Pro"? I just configured what seems to be their top of the range "Area-51 ALX CrossFire" similar to a Mac Pro. (both 2GB, 2x500GB, Mac Pro with 2x quad 3.0 and NVidea 8800GT, Alien with ATI 3870) The "stock" video card on the "Area-51 ALX CrossFire" is TWO GeForce® 8800 GTX cards, which is better that the BEST gaming card for the Mac Pro, the GeForce 880GT. The ATI 3780 isn't an option for either system.

      The Alienware has 4 cores less, though a slightly higher CPU speed, but the Mac has XEON CPUs which are faster GHz for GHz. I recon the Mac will blow it away and it has the better video card. (just) Xeon CPUs are not faster GHz for Ghz, read some reviews. Due to limitations in the current chipsets the very expensive Core 2 Extreme processors are actually faster and have more cache but are less reliable for certain tasks. Games don't take great advantage of multiple CPUs.

      The Alienware is optimized for games, not workstation tasks like the Mac Pro is, so the comparison is a bit unfair (to the Mac Pro). A better comparison would be the HP xw8600 Workstation, which is priced fairly comparable to the Mac Pro.

      The point is: The Mac Pro is hardly the most powerful "off the shelf" PC you can buy.

    55. Re:i know! by daBass · · Score: 1

      The Alienware is optimized for games, not workstation tasks like the Mac Pro is, so the comparison is a bit unfair (to the Mac Pro).
      How is this unfair to the Mac Pro? Nobody buys a Mac Pro simply to play games. In fact, the vast majority of computer owners never play any games. I bought mine to run Photoshop, Aperture, Java development (my IDE runs many threads and uses all cores), Reason, Final Cut Express and other such software. All are optimized to make full use of all cores, as witnessed by the CPU meter. (4 in my case, I have the Quad 2.66 Mac Pro) For this use, the Mac Pro would woop the Alienware's ass - at a grand less. The Alienware might score better in games (I doubt it will if you make up the grand difference by upgrading the Mac Pro's graphics card) but that doesn't mean it is overall the most powerful machine.

      A better comparison would be the HP xw8600 Workstation, which is priced fairly comparable to the Mac Pro.
      "fairly comparable?" I just priced one with 2x 3GHz, 2GB, 500GB and stock graphics for $5,922. A similar Mac Pro retails for $3,699, making the HP 60% more expensive!

      The point is: The Mac Pro is hardly the most powerful "off the shelf" PC you can buy.
      The point is: you *still* have not shown me a more powerful machine, or one that has the same performance for less money.
    56. Re:i know! by rtechie · · Score: 1

      Nobody buys a Mac Pro simply to play games. This is more of a limitation of MacOS than the Mac Pro's abilities. Aside from it's crappy video card, a Mac Pro is adequate to play 3D games. It is just not optimized to do so. Which is why I think it's unfair it's 3D gaming capabilities to the Alienware.

      In fact, the vast majority of computer owners never play any games. The vast majority of computer users play video games on those computers. This is true across all operating systems. The majority of computer users do not use them to play "high-end" 3D games.

      The Alienware might score better in games (I doubt it will if you make up the grand difference by upgrading the Mac Pro's graphics card) but that doesn't mean it is overall the most powerful machine. The SLI graphics cards supported by the Alienware are not an option for the Mac Pro. That plus other limitations (like drivers) means that you CAN'T upgrade the graphics card to the level of the Alienware. The Mac Pro will never be as good in games.

      "fairly comparable?" I just priced one with 2x 3GHz, 2GB, 500GB and stock graphics for $5,922. A similar Mac Pro retails for $3,699, making the HP 60% more expensive! The memory and the hard drives are faster, so it's not directly comparable. If you use components as similar as possible the HP is about $500 more.

      The point is: you *still* have not shown me a more powerful machine, or one that has the same performance for less money. The HP WAS more powerful if you maxed out the specs. It offered faster CPUs, a faster motherboard, faster memory, and faster hard drives. Of course, that system will cost over $10,000, but it's faster.

    57. Re:i know! by daBass · · Score: 1

      The HP WAS more powerful if you maxed out the specs. It offered faster CPUs, a faster motherboard, faster memory, and faster hard drives. Of course, that system will cost over $10,000, but it's faster.

      Both it and the Mac Pro offer the same CPUs; the Quad 3.2GHz 5460 as maximum. The Apple uses 800Mhz DDR2 vs. The HPs 667MHz, so the Mac's RAM is actually faster. The Mac Pro has a 1600MHz FSB vs. only 1333 for the HP. The drives are the same SATA2/7200RPM drives. The only advantage the HP has (under Windows only) is NCQ. Overall the Mac Pro will give better performance.

      You can't choose lower quality components that make it only "about $500 more" expensive.

      We are talking about the same HP xw8600 Workstation as detailed here, right? http://h10010.www1.hp.com/wwpc/us/en/sm/WF06a/12454-12454-296719-307907-296721-3432827.html
    58. Re:i know! by iPirate06 · · Score: 1

      Does Hacktivated always equal Activated?

  2. Terrorists buying them to make a Beowulf Cluster by TibbonZero · · Score: 1

    Iran and North Korea are buying them all up to make a cluster for weapons trajectory?

    Just kidding, but there was a story years ago about Iraq buying Playstation machines (and prior to that a story about the purchase of C64s) to use. The iPhone is the cool new thing.

    As a more serious one, perhaps a lot are being shipped overseas and unlocked for use there?

    --
    Tibbon
    tibbon.com
  3. What about... by Nuclear+Elephant · · Score: 0, Insightful

    Uh, unlocking perhaps? I saw some stats saying 1 in every 3 is unlocked.

    1. Re:What about... by smittyoneeach · · Score: 1

      d00d, what about reading the write-up, which pegged the unlocking percentage at 20%, vice your suggested 33%?
      Maybe the real story here is the way Apple's stock has tanked in the face of strong profits.
      We can rest assured that there was no insider trading, because people are basically good and wouldn't break the rules and stuff.
      http://fakesteve.blogspot.com/2008/01/stock-is-getting-killed-ive-instructed.html

      --
      Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
    2. Re:What about... by freemywrld · · Score: 1

      Their stock tanked because they announced that they have lowered their projections for next quarter. So while they are seeing good profits at the moment, they expect them to be weaker in the coming months.

    3. Re:What about... by smittyoneeach · · Score: 1

      And if their lowered expectations were based upon knowledge of wads of iphones unsold...

      --
      Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
  4. Ummmm by tgd · · Score: 5, Insightful

    So is it really more likely there are 700,000 mysteriously missing iPhones, or perhaps the number of people buying them to unlock is higher than they think?

    Does the number of ATT activations also include the pre-paid plans, or just the contracts?

    1. Re:Ummmm by MouseR · · Score: 1, Informative

      Mine certainly is unlocked and jailbroken.

      And I have this to say to Apple and Jobs.

    2. Re:Ummmm by Internet+Ronin · · Score: 2, Informative

      It almost certainly only include post-paid activations.

      When carriers report their subscriber numbers they focus almost exclusively, in the US anyways, on post-paid subscribers.

      You get a +1 insightful kudos sir, I hadn't considered this possibility until you mentioned it.

    3. Re:Ummmm by mini+me · · Score: 1

      There seems to be quite a lot of iPhones here in Canada even though Apple doesn't sell them. I wonder if they've accounted for unlocked phones that have left the country of origin?

    4. Re:Ummmm by Anonymous Coward · · Score: 0

      Given that unlocked iPhones are for sale in New Zealand (easy to buy!), I suspect that people are underestimating the number of unlocked iphones in use outside of the USA. I imagine they're for sale on the street throughout a lot of asian countries.

    5. Re:Ummmm by HartDev · · Score: 1

      I got an iphone and the first I did was get a large bill from AT&T, so I got smart and canceled AT&T before the 30 days and unlocked the iphone, then about 3 or so months later something happened and I was swindled into upgrading and the fight to use T-Mobile instead of AT&T was too much, and anybody that know how to rehack wanted $50 an hour, so I was done with that, I sold the phone for as much as I bought it for and will just wait until they finally give up AT&T or the Open Moko comes out....which ever happens first.

      --
      To see a few of my Android apps goto: www.hartwired.com
  5. Not a big surprise by AuMatar · · Score: 0, Troll

    Just far too expensive. Especially with a recession coming, not too many people will buy a 400 dollar phone. And requiring a 100 dollar a month contract minimum is an absolute deal killer. Don't expect to see real demand for a device like that until the price drops at least another 100 to 200.

    --
    I still have more fans than freaks. WTF is wrong with you people?
    1. Re:Not a big surprise by daninspokane · · Score: 0

      This was my first thought. Too damn expensive. I bought an ipod touch because of the price.... I pay $400 and that's it. AT&T is just too expensive, I wasn't about to blow $400 on the phone then $1200 on a year contract...plus I don't trust At&T >.

      --
      Slashdot is too nerdy for me.
    2. Re:Not a big surprise by Subliminalbits · · Score: 0

      I don't know where you're getting your plan info from, but my friend's iPhone contract sets him back about $65 a month. Thats not cheap, but its a lot cheaper than $100.

    3. Re:Not a big surprise by filterban · · Score: 2, Informative

      $100/month? What country do you live in? I'm paying $60/month and that includes unlimited data.

      --
      rm -rf /
    4. Re:Not a big surprise by Anonymous Coward · · Score: 1

      You're a little high on the monthly fee as I have a family plan with the wifey for under 100 w/ iPhone at ATT. However you are completely right on the iPhone price. If there is the excess inventory then yes the price will come down.

      I suspect there are alot of would be buys waiting for the 3G iPhone. Since Steve and ATT's CEO have both confirmed an 2008 3G iPhone then I can only suspect that everyone like me who doesn't care about $400 now is waiting for the 3G or the non-3G "giveaways". Time for a price cut!

    5. Re:Not a big surprise by cephus440 · · Score: 1

      You want the 100 dollar a month contract minimum to drop 100 to 200? I'd love to get an Iphone that would pay me 100 a month! I'd even be willing to forgo the 400 dollars for the phone.

    6. Re:Not a big surprise by daninspokane · · Score: 0
      But the TRUST!! THE TRUUUSSTTT

      In 2006, the Electronic Frontier Foundation lodged a class action lawsuit, Hepting v. AT&T, which alleged that AT&T had allowed agents of the National Security Agency (NSA) to monitor phone and Internet communications of AT&T customers without warrants. If true, this would violate the Foreign Intelligence Surveillance Act of 1978 and the First and Fourth Amendments of the U.S. Constitution. AT&T has yet to confirm or deny that monitoring by the NSA is occurring.
      --
      Slashdot is too nerdy for me.
    7. Re:Not a big surprise by Goaway · · Score: 1

      So the lack of demand is why they only sold two millions of them?

    8. Re:Not a big surprise by Anonymous Coward · · Score: 0

      Yeah, what idiot would pay that much !?
      --- Posted from my iPhone (Really.)

    9. Re:Not a big surprise by Archimonde · · Score: 1

      I know that GP is talking about US but take a look at German T-mobile pages and if you use euro to dollar conversion you'll end up with 73/100/130usd per month. That is quite a lot.

      --
      Trolls are like broken clocks. They show the truth two times a day. The rest of the day they talk nonsense.
    10. Re:Not a big surprise by stewbacca · · Score: 1

      My contract is $70.45 per month. I'm not sure where you get your "100 dollar a month contract minimum" from.

    11. Re:Not a big surprise by Achromatic1978 · · Score: 1

      I don't believe you. You're on a $59 PLAN. Show me a bill saying that at the end of the month, your total amount owing is $59. It ain't. It's probably actually in the region of at least $75-85.

  6. I have an idea.... by ironcanuk · · Score: 2, Insightful

    How about Apple and Rogers getting together and selling those iPhones to us up here in Canada? We feel neglected!

    1. Re:I have an idea.... by Anonymous Coward · · Score: 0

      How about Apple and Rogers getting together and selling those iPhones to us up here in Canada? We feel neglected!

      Won't happen anytime soon in Canada. Apple demanded & got a reasonably priced unlimited data plan from AT&T. No Canadian carrier will do that - they don't want to jeopardize their cash cow.

      Canadians pay some of the highest rates in the western world for cell phone service & mobile data. As a result, cell phone ownership is extremely low compared to other countries.

      The main reason? Lack of competition.

      Incidentally, if you really, really want an iphone in Canada, you can buy them through the grey-market at some cell phone dealers. Get a blackberry instead, you'll be much happier.

  7. Shocking! by Alexx+K · · Score: 1, Funny

    A $499 iPod touch with phone capabilities and locked into America's most evil telco isn't selling! I am well and truly shocked! I never suspected this would happen!

    --
    Don't mind the extra X. Alex
    1. Re:Shocking! by dtolman · · Score: 2, Insightful

      I wish I had a product that sold as "poorly" as the iPhone.

      Course some of us can settle for having just one billion $$$ instead of dozens.

    2. Re:Shocking! by Anonymous Coward · · Score: 1, Insightful

      A $499 iPod touch with phone capabilities and locked into America's most evil telco isn't selling! I am well and truly shocked! I never suspected this would happen!

      1. It is selling.

      2. It's locked into AT&T/Cingular/SBC/whatever, not Verizon.

    3. Re:Shocking! by falcon5768 · · Score: 1

      If you mean not selling as in going from 0 to well over 1% market share in a year (and selling well over 1 mil to boot) then yes its selling very very poorly and making AT&T and Apple GOBS of cash in the process.

      --

      "Slashdot, where telling the truth is overrated but lying is insightful."

    4. Re:Shocking! by stewbacca · · Score: 1

      Man, if you are gonna get modded flamebait, you could at least get the price right in your flame.

  8. You are right by That's+Unpossible! · · Score: 4, Interesting

    The pundits math doesn't line up. What's the reason? They don't know what the fuck they are talking about.

    For example: "20% estimate of people buying the iPhone just for the purposes of unlocking, there are still 700,000 iPhones unaccounted for."

    OK, so then I guess maybe the 20% estimate is wrong? Horrors.

    What I do know for certain is that this discussion won't solve something that only Apple can answer.

    --
    Ironically, the word ironically is often used incorrectly.
    1. Re:You are right by 192939495969798999 · · Score: 1

      So, if we knew for a fact that all of those 700,000 were unlocked, the estimate of unlocked phones would skyrocket to maybe 50% and we'd have no more unaccounted for phones, right?

      --
      stuff |
    2. Re:You are right by StarvingSE · · Score: 1

      Or the number of units sold != number of units in customers hands. When apple sells a shipment of iphones to a vendor, those are considered "sold" items under most circumstances. What this article tells me is that apple overestimated the demand for the iphone, and there are a lot of units (like 700,000) collecting dust on store shelves.

      --
      I got nothin'
    3. Re:You are right by bwalling · · Score: 1

      This article shouldn't tell you anything. It's useless drivel. If you like to hate Apple, you'll believe it because it makes Apple look bad. If you like Apple, you'll bash on the numbers. Regardless, it doesn't have any substance at all.

    4. Re:You are right by geekoid · · Score: 1

      Always look extra carefull at any statement that use percentages and then whle numbers.

      What percentage of phones made is 700,000? I know they sold 700,000 units on the first weekend. Which was estimated to be about 150-200 million in profit. That explains how that could drop the price 200 bucks.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    5. Re:You are right by ceedee666 · · Score: 1

      I guess there is a totally different reason for the missing 700,000 iPhones. The retail price in the US is $399 which is currently roughly 270. The current price for an iPhone on ebay.de is about 560! This is more than double the US price. The price for an iPhone without a mobil plan in Germany used to be 999 (not sure if it is still sold). The situation is similar in other European countries AFAIK.

      How many people a re traveling between Europe and US each day?

      This is where the missing iPhones are!

  9. No worries by DaffyDuck101 · · Score: 3, Funny
    From the mouth of the great leader himself:

    Apple faithful, trust me on this. The phones are not lost. Okay? I just saw them, like, I don't know, last week. Or was it just before Macworld? Tim Cook is trying to find the paperwork because he says he knows we shipped them and he can totally remember seeing the invoices but now he can't remember where he put them but he swears they're around here someplace. Ja'Red is on the job too.
    http://fakesteve.blogspot.com/2008/01/so-were-missing-few-hundred-thousand.html
    1. Re:No worries by drhamad · · Score: 1

      Fake Steve Jobs is far less funny now that we know who he really is.

      --
      -Daniel
    2. Re:No worries by MacarooMac · · Score: 1

      Tim Cook is trying to find the paperwork
      'Cos it's not like he'd be foolish enough to store important contract documents on his Mac or anything...
      --
      "He Who Dares Wins" ...or gets twenty-to-life for totaling their Bimmer on a poodle parade
    3. Re:No worries by MrCopilot · · Score: 1
      And don't trot out the old thing about shareholders having a right to know, blah blah. That's bullshit. It's my company, and if you don't like the way I run it, sell your fucking shares. Okay? We straight on that?

      Awesome.

      --
      OSGGFG - Open Source Gamers Guide to Free Games
    4. Re:No worries by keytoe · · Score: 1

      Before, he was some guy I didn't know that wasn't Steve Jobs. Now, he's some guy I don't know that isn't Steve Jobs. So, in your world, humor comes from not knowing a person's name? Interesting.

      Or are you one of those "I liked them until they got popular" kind of guys?

    5. Re:No worries by drhamad · · Score: 1

      It was funny when you had no idea who he was, what he was coming from, etc. It's like Anonymous Lawyer - once I found out he was just some kid that went to law school and didn't become a lawyer, it was much less interesting than when it seemed like he might be some big firm lawyer just grossly exaggerating what went on.

      --
      -Daniel
    6. Re:No worries by keytoe · · Score: 1

      Huh - OK. I guess I find things that are funny to be funny because they're funny. Maybe you lose a bit of potential meta-humor when you imagine the author as something specific in your head, and then that changes - but if the material is funny, it shouldn't matter who wrote it. The guys premise, style and delivery has remained the same, after all.

      But far be it from me to tell you what you should find funny - I just think it's interesting.

    7. Re:No worries by onefriedrice · · Score: 1

      Actually, the other guy is right dude. Most humor is directly related to context. You may like to think that you can find humor out of any context, but the reality is you can find something really funny in one context and absolutely not funny at all in a slightly different context. It may be true that you still find FSJ funny, but that's only because you apparently don't care about the minor context switch which took place once his identity was known, and that's fine. Good for you (I personally didn't find him funny even before that). However, just be informed that context very much does matter in humor, regardless of whether the context switch made an impression on you or not.

      --
      This author takes full ownership and responsibility for the unpopular opinions outlined above.
    8. Re:No worries by keytoe · · Score: 1

      I'm not claiming that context isn't important at all - context is critically important to humor. I'm claiming that the context didn't materially change once the identity of the author was discovered. The material, as presented in the intended medium (a blog posting by fake steve jobs), didn't undergo a context change at all once the author was known. Would the material somehow be retroactively funnier if it was discovered that George Carlin wrote it? Knowing the actual author is tangential in this case.

      I'll immediately admit that discovering that it was George Carlin would be funny in and of itself, but would it somehow change the humor value of the previous work? I don't think so.

      Speaking of tangents...

    9. Re:No worries by The+One+and+Only · · Score: 1

      When I first started reading Fake Steve Jobs, it was funny because I could tell it was an impression of him, and the parts that didn't seem realistic to me I could shrug off somewhat. When I found out it was a journalist, Daniel Lyons in particular, the errors seemed more glaring to me because I could think, "oh, he's a tech journalist, no wonder he didn't get that right". And when I found out he had a well-documented axe to grind against open source, it only made it worse--while I could imagine Steve Jobs acting dismissive towards Stallman, it was considerably less funny when I found out it was some guy from Forbes of all places projecting his opinions onto Steve Jobs.

      It's also possible that the quality went down after the secret was revealed, but I think it's more likely that reading it, knowing who was writing it, made me more aware of flaws that were there the whole time. Add in a bit of disappointment (why did it have to be a professional tech journalist instead of some unknown satirist?) and it's no surprise I ended up removing Fake Steve Jobs from my RSS listing.

      --
      In Repressive Burma, it's not just your connection that dies. slashdot.org/comments.pl?sid=314547&cid=20819199
  10. A million here, a million there, and sooner or... by Henry+V+.009 · · Score: 1, Flamebait

    Fake Steve has a write-up on this (of course). If the phones have really been sold to the public, and aren't missing because of inflated numbers or internal sales, then this has really got to be hurting the bottom line. I believe that the phone contract subsidizes the hardware, and if people buy phones without contracts, Apple is losing money on each sale. 1.7 million phones winds up being a lot of money. The amount that each phone is subsidized is unknown, of course.

  11. Re:Terrorists buying them to make a Beowulf Cluste by flyingsquid · · Score: 5, Funny
    The iPhone is the cool new thing.

    Totally. Kim Jong Il got one, and now Mahmoud Ahmadinejad and Osama Bin Laden are really jealous, to the point that it's threatening to completely disrupt the Axis of Evil. It doesn't help that Osama got a brown Zune for Christmas and now Kim Jong Il and Ahmadinejad are teasing him mercilessly about it.

  12. Enough anti-iPhone FUD to choke on... by illumin8 · · Score: 4, Informative
    This anti-iPhone FUD is pretty crazy. It makes me wonder how many MS shills and bloggers they have on the payroll:

    "[...] suggesting that they're sitting on store shelves, piling up as unsold inventory. That number suggests at least some gap between perceived demand and actual demand -- while also raising questions about how much effort it will take to eat through that inventory."
    If you knew anything about Wall Street, Apple can't announce sales when they're sitting on store shelves. They can only announce sales when they've been sold to an actual customer.

    Surely some small percentage of phones are being unlocked, but did you ever stop to think that maybe the numbers are off because AT&T hasn't reported yet how many iPhone subscribers there are for December/January and there were probably tens of thousands of iPhones purchased as Christmas gifts that sat under a tree and just barely got activated in the last couple of weeks?
    --
    "When the president does it, that means it's not illegal." - Richard M. Nixon
    1. Re:Enough anti-iPhone FUD to choke on... by Buelldozer · · Score: 3, Informative

      What are you talking about?

      Both Sony and Microsoft have a well established, and documented, history of announcing shipped instead of sold numbers!

      Last I checked both are listed on the NYSE. Do MSFT and SNE ring any bells for you?

    2. Re:Enough anti-iPhone FUD to choke on... by Attila+Dimedici · · Score: 3, Informative

      Actually, they can announce sales when they are sitting on store shelves, as long as those stores aren't part of the same corporate entity as is announcing sales. If the phones were sold to AT&T stores and are sitting on the shelves of the AT&T stores, Apple can count them as sold. If they are sitting on the shelves of Apple stores, then it depends on the corporate relationship between Apple stores and Apple itself (which I do not know, and don't care enough to look up).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    3. Re:Enough anti-iPhone FUD to choke on... by MBCook · · Score: 2, Insightful

      That's called channel stuffing, and Microsoft has done it quite a few times with the Zune, XBox, and XBox 360 in order to temporarily inflate the sales numbers. What happens is after you've done that, those stores don't need to order more for a while, so after your "great sales" period, you'll get a "low sales" period as the old units get cleared out.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    4. Re:Enough anti-iPhone FUD to choke on... by seanadams.com · · Score: 1

      They can only announce sales when they've been sold to an actual customer.

      Not true. The terms you're looking for are "sold in" vs "sold out". Sometimes "sold out" can be very difficult to know with any precision, because of the time it takes retailers to reorder and variance in their stocking levels. "sold in" (meaning goods went into the channel) is when the revenue is recognized, because the channel _is_ the customer, from the manufacturers perspective.

      Of course Apple also has their own retail stores and in that case, yes the inventory is still "theirs" until it is sold to the end user. However in that case there is no channel to speak of so a sale is just a sale.

    5. Re:Enough anti-iPhone FUD to choke on... by Sparohok · · Score: 4, Informative

      Both Sony and Microsoft have a well established, and documented, history of announcing shipped instead of sold numbers!

      You can announce whatever you want, the question is what you recognize as revenue. For that you need to ask an accountant.

      I'm not an accountant, but here's the basic principle. The important question is who is the customer and when a sale is made. If you sell a product to another company, such as a distributor or retail store, that's revenue, even if it hasn't been sold to their customer. If you ship a product to your own retail store, that's not revenue until it's sold to a customer.

      Then you get complexities like, what happens if the distributor has an agreement where they can require you to buy back unsold product? Does that mean the distributor's inventory should also be treated as your own inventory?

      That's why there's a genuinely interesting question about how many iPhones have really been sold to customers, and the truth may not be a simple matter of reading quarterly press releases from Apple and AT&T.

      Last I checked both are listed on the NYSE. Do MSFT and SNE ring any bells for you?

      Actually, MSFT is listed on Nasdaq, Sony is listed in Tokyo. SNE is a secondary listing (American Depository Receipt).

      Martin

    6. Re:Enough anti-iPhone FUD to choke on... by gurps_npc · · Score: 1

      Or maybe were RETURNED (or sold on Ebay or passed on like a fruit cake or just locked in a drawer) because the recepient has no desire to sign a contract for $100+/month.

      --
      excitingthingstodo.blogspot.com
    7. Re:Enough anti-iPhone FUD to choke on... by Attila+Dimedici · · Score: 2, Insightful

      Most manufacturers do it. Actually, it is one of those things that happens because it is hard to know how many units have been sold by the retailers who are not part of your company. Of course, many manufacturers further game this by giving incentives to retailers that encourage them to stock up on an item beyond what anyone expects them to sell at certain times to make the numbers look better for a particular report (figuring that no one will be paying attention to the next report). Additionally, the manufacturer hopes that the hype created by them "selling" so many units will increase the demand in the following time frame over what it otherwise would have been. This used to work better than it does now because people have figured out that the hyped numbers are exaggerated.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    8. Re:Enough anti-iPhone FUD to choke on... by Vellmont · · Score: 1


      If you knew anything about Wall Street

      Reading the other posts in this story, it sounds like the only one who "doesn't know anything about Wall Street" is you. Care to justify your position with some evidence to support it?

      --
      AccountKiller
    9. Re:Enough anti-iPhone FUD to choke on... by illumin8 · · Score: 4, Insightful

      That's called channel stuffing, and Microsoft has done it quite a few times with the Zune, XBox, and XBox 360 in order to temporarily inflate the sales numbers. What happens is after you've done that, those stores don't need to order more for a while, so after your "great sales" period, you'll get a "low sales" period as the old units get cleared out.
      The only problem is that iPhones are only sold at two places: Apple stores and AT&T stores. Apple can't stuff their own channel because that wouldn't count as a sale. And do you think AT&T is stupid enough to take inventory of 700,000 phones at once? That would be bat-shit insane.
      --
      "When the president does it, that means it's not illegal." - Richard M. Nixon
    10. Re:Enough anti-iPhone FUD to choke on... by vux984 · · Score: 2, Insightful

      Nintendo does too... but in their case shipped and sold happen to be the same number lately.

    11. Re:Enough anti-iPhone FUD to choke on... by MobileTatsu-NJG · · Score: 1

      This anti-iPhone FUD is pretty crazy. It makes me wonder how many MS shills and bloggers they have on the payroll: You don't have to be paid by Microsoft to find annoyance in Apple's hype factory. It's just like you defending Apple even though you're not on their payroll.

      As others have pointed out, you're not so right that people would have to be paid to disagree with you.
      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    12. Re:Enough anti-iPhone FUD to choke on... by jandrese · · Score: 2, Insightful

      Where did this $100/month contract meme come from? This is the second time it has been posted in this thread alone and I can't figure out where it came from. The only thing I know for sure is that it didn't come from reality. The basic iPhone plan (the one that almost everybody would get unless they're a salesguy or a teenage girl) is $60/month. Still kinda high, but with unlimited data (most cell data plans are pure rape) it's not completely unreasonable. The idea is if you plunking down the big bucks for the phone in the first place you can afford an extra $20/month on your phone bill over your existing non-data phone. It works out to a $240/year premium to own a phone that can hit google whenever you want. If that's not for you, don't get the iPhone.

      --

      I read the internet for the articles.
    13. Re:Enough anti-iPhone FUD to choke on... by Ogive17 · · Score: 1

      Then you get complexities like, what happens if the distributor has an agreement where they can require you to buy back unsold product? Does that mean the distributor's inventory should also be treated as your own inventory?

      I'm not a CPA though my BS focus was Accountancy (and it's been awhile)... The first thing that came to mind was to treat returns like a warranty account. Companies will come up with a % of sales they believe they will spend on warranty/returns and that will be part of the balance sheet. At the end of the year they have to reconcile any differences between plan and actual.

      So if Apple did sell iphones to outside retailers with a clause to buy back unsold inventory, they would most likely have an estimate on the books already.

      For an Apple store the inventory is probably part of the Finished Goods account. Every time one is sold you add that amount to sales and subtract it from FG.

      --
      "Action without philosophy is a lethal weapon; philosophy without action is worthless."
    14. Re:Enough anti-iPhone FUD to choke on... by ePhil_One · · Score: 1
      Most manufacturers do it.

      This is business 101. Manufacturers do it because the store is their customer, not the end user. The end user is the customer of the store. The store buys the iPhone from Apple for cost $X. When the customer buys the iPhone from the store, Apple doesn't get that money, the store does. Only if the store has managed some sort of consignment arrangement (Walmart is reported to force these on weaker companies) does the manufacturer not get paid on delivery (actual terms very, but generally after being shipped, it counts as a sale and the rest is cash flow management). When it sits on the shelves and is sold at a deep discount, the stores is who loses money, not the Apple. Apple is motivated to help the store sell the product because they want to sell more to the store and they want the store to have confidence investing in Apple products for their shelves, hence all the advertising to you, the end user (aka "the final customer").

      As for 700,000 in channel, well, imagine a typical ATT Wireless outlet wants 35 to sell in a month (one a day seems a reasonable average). That means we have 20,000 outlets. Spread that accross 50 states, that would give us 400 outlets per state. I'm note sure where you live, but my area is thick with ATT Wireless stores. Every mall, every other strip mall, I can see lots of states hitting that goal, with the rest made up for in online fullfullment warehouses.

      Then figure Apple probably set the Apple store up as an independant company to simplify the book keeping, meaning those few hundred stores count too, and the numbers aren't unreasonable. It would be better to look at average sales for a year to figure what a month of sales stock looks like, but I don't care enough...

      --
      You are in a maze of twisted little posts, all alike.
    15. Re:Enough anti-iPhone FUD to choke on... by jhylkema · · Score: 1

      The only problem is that iPhones are only sold at two places: Apple stores and AT&T stores.

      Correct.

      Apple can't stuff their own channel because that wouldn't count as a sale.

      Unless the Apple Store is a separate corporate entity, which I'm pretty sure it is. Then that would count as a sale.

      And do you think AT&T is stupid enough to take inventory of 700,000 phones at once? That would be bat-shit insane.

      Then again, given the iPhone's perceived demand (spell that "hype"), Apple is in a position to pretty much tell AT&T how many iPhones they're going to take and when. Apple, therefore, can stuff the channel with unsold iPhones eight ways to Sunday.

    16. Re:Enough anti-iPhone FUD to choke on... by Attila+Dimedici · · Score: 1

      My experience with this is in the book business. I was a bookstore manager for many years and a bookstore book buyer for several more. One of the games publishers would play would be to release a new big title and give the bookstores an additional large discount (say enough to make it worth ordering in 3 months supply, when I usually only ordered a weeks worth) if they would pre-order the book. Then the Monday after the book released on Friday they would issue a press release saying "we sold x copies of the book already". Of course they could have issued that very same press release on Thursday of the week before when the book went on sale on Friday, because the only "sales" that the publisher has at this point are pre-orders, no one has had a chance to place a re-order yet. Another thing that makes this bogus is the fact that a certain percentage of the "sold" books will be returned to the publisher down the line for credit.
      The other thing that makes these reports deceptive is when they compare the number they sold to retailers over a period of time when they first release a product to the number of a similar product that was released previously sold to the general public.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    17. Re:Enough anti-iPhone FUD to choke on... by Anonymous Coward · · Score: 0

      When shipped to a retailer, that is a sale. This isn't some attempt at inflating numbers. They're selling to the retailer who pays for the product, who then turns around and marks it up for profit.

      I certainly don't see Microsoft and Sony saying, "Here's x number of y. Don't worry about paying us until you sell them all" A sale is a sale is a sale. As far as Microsoft and Sony are concerned, they've sold x number of y. It doesn't matter if the retailers have only sold half of that amount.

      Now if Sony is reporting shipping numbers to their own stores as sales, that's different. But for Christ's sake, this isn't rocket science.

    18. Re:Enough anti-iPhone FUD to choke on... by asc99c · · Score: 1

      With the possible exception of the phones sold in Apple stores, just how do you believe Apple knows when an iPhone is sold to a customer? All manufacturers talk about sales of items sold to stores. Apple might actually be able to get customer sales for the iPhone due to exclusivity contracts, but for iPods, they're sold everywhere. The shops that sell them are under no obligation to tell Apple when they've sold their stock.

    19. Re:Enough anti-iPhone FUD to choke on... by e2d2 · · Score: 1

      This anti-iPhone FUD is pretty crazy. It makes me wonder how many MS shills and bloggers they have on the payroll

      Yup, any negative criticism is sure to come from shills and corporate bloggers.

      Typical fan boy bullshit we see here everyday. Anytime anyone questions a product they like they cry "M$ SHILL!". Completely unsubstantiated statements as always.

      If you knew anything about Wall Street, Apple can't announce sales when they're sitting on store shelves. They can only announce sales when they've been sold to an actual customer.

      And if you knew anything about human nature and capitalism you'd be hip to people cooking the books for wall street. is it impossible? Hardly.

    20. Re:Enough anti-iPhone FUD to choke on... by LearnToSpell · · Score: 4, Funny

      And do you think AT&T is stupid enough to take inventory of 700,000 phones at once?

      Having been on the phone with AT&T for the last four hours, yes, yes I do.

    21. Re:Enough anti-iPhone FUD to choke on... by Anonymous Coward · · Score: 0

      I was an activist. Then I fucked your dad.

      Activist activist activist!

    22. Re:Enough anti-iPhone FUD to choke on... by p0tat03 · · Score: 2, Informative

      then it depends on the corporate relationship between Apple stores and Apple itself

      Apple Stores are directly managed by Apple in their jurisdiction. (i.e. Apple Stores in California managed by Apple, Inc., Apple Stores in Canada managed by Apple Canada Inc.)

      All Apple Store employees work for Apple, Inc., not some "third party" subsidiary that was created to handle its retail presence.

      I think it's pretty safe to say that Apple can't count Apple Store inventory units as "sold".

    23. Re:Enough anti-iPhone FUD to choke on... by gurps_npc · · Score: 1
      I was just going by what the other post said.

      But your argument is not insightful. In fact it is totally devoid of insight, you misses our point entirely.

      We were discussing the specific issue of GIFTS.

      Getting someone an Iphone as a Gift, unless they specifically begged for it, is rather stupid. If you were to go up to me and offer me one FOR FREE (and insist I keep it, instead of selling it), I would refuse. Why? Because I don't want to pay the $60+/month.

      Yeah, other people might, but it is a the entire point of this threaad is why might people buy an Iphone and not activate it.

      One possible explanation is simple: Moron friends/parents/etc. bought 'the new cool phone' for people that were no way willing to spend the large amount of money. So tons of them were bought but not activated.

      Simple, insightful.

      Your argument is a reasonable explanation of why someone might buy one themselves, but has nothing to do with the issue of gifts for 3rd parties.

      --
      excitingthingstodo.blogspot.com
    24. Re:Enough anti-iPhone FUD to choke on... by Anonymous Coward · · Score: 0

      For the iPhone, the only "retailer" is AT&T.

      The Apple Stores are not a sale, because they are still owned by Apple.

      And you can't buy an iPhone through any of the Apple dealers, nor can you get one from an AT&T dealer, it must be a company owned store.

  13. Say what? by Anonymous Coward · · Score: 0

    This article doesn't add up... It says that the figure of 20% for the percentage of iPhones sold to unlock is an estimate. Couldn't the 700,000 represent simply an underestimate of this percentage?

  14. Time to bring in the auditors by rukidding · · Score: 0

    a 1.7 million difference??? ...something funny is going on. 1.7 million iphone are not being unlocked.

    Its probably not being done on purpose, but probably somewhere there is an accounting flaw.

    --
    ...
  15. Re:Terrorists buying them to make a Beowulf Cluste by corychristison · · Score: 2, Insightful

    As a more serious one, perhaps a lot are being shipped overseas and unlocked for use there?
    I would think a little more north if I were you.
  16. Maybe... by niceone · · Score: 2, Funny

    They've been pinched?

    (British joke only, I guess)

  17. iPhone service starts at $60 by jevvim · · Score: 4, Informative
    And requiring a 100 dollar a month contract minimum is an absolute deal killer.

    Service plans for the iPhone start at $59.99/mo, which is $39.99 for the voice line and $20 for data. I added another iPhone for my wife for another $20 (data plan).

    1. Re:iPhone service starts at $60 by peragrin · · Score: 1

      actually if you have an existing at&T contract all you need is to sign a new two year contract, and add the data plan t it. So for me it would 49.99 plus all those fees that every cell phone users has to pay for.

      --
      i thought once I was found, but it was only a dream.
  18. I dont think so! by iknownuttin · · Score: 0, Troll

    Don't expect to see real demand for a device like that until the price drops at least another 100 to 200

    Speak for yourself! I have a bunch of black turtle necks and black jeans and I really need one of those! As a matter of fact, I can actually deduct those off of my income tax by declaring my profession as "Mac Fanboy".

    --
    I prefer Flambe as apposed flamebait.
  19. AT&T numbers are likely for iphone specific pl by Que_Ball · · Score: 3, Insightful

    I think the likely reason for the large difference is that AT&T is simply giving you a total number of users who activated a phone on the Specific iphone plans and it does not include users who are blending the data only plan addition with a regular voice plan.

    Many people will need more minutes than the regular iphone specific plans can deliver or wanted to keep their existing plan and simply add the iphone features to it.

    Or AT&T simply doesn't like paying Apple and they are looking for ways to under report the activations of iphones until after the customers window to cancel without penalties expire or something like that.

  20. The recession and Apple by MikeRT · · Score: 3, Interesting

    Not only that, but Apple is in for a swift kick in the ass if they're not careful. Even though a lot of people will still be able to afford an iPhone, the issues surrounding its battery will be a deterrent to purchasing it. Apple will have two choices if it wants to appeal to consumers who are starting to worry about their budgets: make the batter removable like a Razr or any other phone, or lose potential customers.

    A removable battery takes away nothing from the aesthetics of the case. The only thing it does is keep it out of Apple's service shop every year, and thus makes it harder to justify buying a new one every year. Apple needs to prepare itself by making this a non-issue for the iPod Touch and iPhone if it doesn't want to face potential disruption.

    Apple could take an active part in developing software for both devices, and sell them to offset the losses in their plans from people not spending a lot of money on repairs and new phones.

    1. Re:The recession and Apple by peragrin · · Score: 4, Insightful

      um Ihave never replaced the battery in any phone I have ever owned. they are on 24hours a day. I charge them while they are on. by the time the battery goes weak in my phones 2-3 years have passed and I am thinking about a new one anyways. If you talk so much during he day that your phone can't keep a charge for one day you should try doing less talking.

      --
      i thought once I was found, but it was only a dream.
    2. Re:The recession and Apple by Typoboy · · Score: 1

      Seriously, most people care about the non-removable battery only slightly more than they care about 'non-free' software being used inside. And, a good percentage of those who care about it on here, could actually replace the battery themselves if they really wanted to.

      A removable battery does affect the aesthetics of the case when it comes to hinges, doors, latches... all of which are additional things that could break or wear out. If the battery is bad, replace the unit under warranty. Since it's a syncable phone, and since it's GSM (you can keep some of your phonebook on the SIM), the amount of pain you have in swapping units has got to be very minimal.

      Me, I'm waiting for 3G+dev kit...

    3. Re:The recession and Apple by Tony+Hoyle · · Score: 1

      Aside from the fact that the iphone battery barely lasts a day on standby, have you never been on holiday? Can't take an iphone... it'll be flat after the first day (after about 8 hours in fact) then what do you do for the other 13 days?

      I usually have 3 on rotation which gives me about about 9 days on a normal smartphone (N95) and by then I might have found the power source to charge at least one of them. If not I switch off the phone overnight and it lasts the whole two weeks on 3 batteries.

    4. Re:The recession and Apple by ZarkOmicron · · Score: 1
      Ever considered taking a power cable with you on holiday? Or are you talking about a camping trip or something similar? In which case you presumably don't need the phone on very often.... Also, the iPhone battery easily lasts more than 8 hours on standby -- or even light use. Apple says 8 hours of talk-time. More specifically, from http://www.apple.com/batteries/iphone.html:

      Maximum Battery Life iPhone offers up to 8 hours of talk time,(1) 6 hours of Internet use,(2) 7 hours of video playback,(3) or 24 hours of audio playback(4) on a full charge at original capacity. In addition, iPhone features up to 250 hours of standby time.
      Even this: http://www.wirelessinfo.com/content/Apple-iPhone-Cell-Phone-Review/Battery-Life.htm found a talk time of 7 hours and music playback time of over 10 hours. Where did you come up with the idea that it only lasts 8 hours on standby?
    5. Re:The recession and Apple by devilspgd · · Score: 1

      While some sort of latches/doors are required, they don't have to be visible -- The Razr2 V9, for example, has no external indications of how the battery attaches.

      Sure, something could break, but compare that against the odds of the battery dying (100%, the only variable being time)

      --
      Give a man a fish, he'll eat for a day, but teach a man to phish...
    6. Re:The recession and Apple by devilspgd · · Score: 1

      My Sony W810i lasts over a week of standby while camping, my Razr V9 does 5-7 days. While I am only going on second-hand trusted-friend accounts of the iPhone, 3 days appears to be the real world battery life on standby.

      --
      Give a man a fish, he'll eat for a day, but teach a man to phish...
    7. Re:The recession and Apple by petecarlson · · Score: 1

      I was waiting for the 3G version but work got me one for Christmas. EDGE is horrid but for the most part I am within range of 802.11 throughout most of the day. This sucks power and it took a little getting used to having to plug it in all the time but once I picked up USB adapters for all of my computers I manage to keep a good charge most of the time.

      A few notes:
      1) I would love to not have to worry about jailbreaking each new version of the firmware.
      2) I need Linux support.
      3) Antenna placement is sub-optimal. The hand is a bad radome. This forces the radio to transmit at higher power and thus reduces battery life.
      4) The phone is not able to display full ssids of 37 characters. Often I can not tell what network or sector I am trying to connect to.
      5) There is no way to connect to a particular BSSID
      6) There is no radius supplicant. This sucks.
      7) The phone will not display the BSSID of the network I am connecting to.
      8) You can not set the modulation down to a lower data rate for better "long range" 802.11 connections.

    8. Re:The recession and Apple by Typoboy · · Score: 1

      Thanks for the comments. That's a good point about 802.11.. maybe i will just wait for the SDK :) Linux would be nice, but I'll settle for semi functioning apps.

    9. Re:The recession and Apple by Typoboy · · Score: 1

      As the other posters said, I wouldn't be away for more than a couple of days without some power source - an a/c cable, a 12v cable, a USB cable, a solar panel... I don't know what you're mode of operation is, but you might consider one of these batteries instead of lots of small batteries.

      But hey, it sounds like you really prefer replacing batteries. Nothing wrong with that. My original point was that I don't think that's a common concern.

    10. Re:The recession and Apple by david_thornley · · Score: 1

      iPhone battery life depends heavily on how you're using it. I had it set to automatically check my mail every 15 minutes, and it wouldn't last a day. After turning that off, it lasts me for several days on a charge, depending of course on how I use it. The Edge communication seems to take a lot of power.

      When I called Apple, I was told that I could turn off the checking for wireless connections, and that would save a lot of power. I haven't tried that, since the iPhone battery is lasting quite long enough, and it would be one thing for me to remember when going somewhere that has wireless. (The customer service rep was also a very helpful English speaker who showed no desire to get rid of me to raise her call count. Another nice Apple touch.)

      If I were going camping with the thing, I wouldn't expect 802.11 connectivity, so I wouldn't have it checking for it. I wouldn't have it doing anything on the Edge data transfer, unless I really needed it. I'd keep it around for phone and camera use only, and I'd expect the charge to last for quite a few days.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    11. Re:The recession and Apple by devilspgd · · Score: 1

      A big part of the problem is that the iPhone is polling for mail every 'x' minutes, rather then using the over-10-year-old IMAP IDLE command to receive updated from the server via a push.

      This method requires one packet every 29 minutes while idle (to update the server that the client is still IDLEing and to avoid timing out), but otherwise, data is only transmitted when something has actually changed.

      On my Treo 680, this nearly doubles your standby-with-mail-client-online (but no calls, no TXTs, no email sent or received) time, vs regular polling (which, in the iPhone's case, is a fairly substantial IMAP query)

      --
      Give a man a fish, he'll eat for a day, but teach a man to phish...
    12. Re:The recession and Apple by Anonymous Coward · · Score: 0

      I keep 2 batteries for my phones, I've done this for years. Many days, I'll need to swap batteries by the end of the day.

      And as far as doing less talking, I suppose I could do that. After all, I don't really want to get paid.

      And right now, it's a weekend. The phone has been off the charger all day - and I've got a full charge. But sure, I'll talk less because YOU want me to.

      I'm sorry, you are being an arrogant jerk, as you presume to know how much I should talk

    13. Re:The recession and Apple by Anonymous Coward · · Score: 0

      Sure. Stop yakking on the phone. Chill out watching a movie on --- errrrr, your iPhone? Well, maybe you could spend some quality time listening to --- errrrr, the iPod in the iPhone?

    14. Re:The recession and Apple by Anonymous Coward · · Score: 0

      > A removable battery takes away nothing from the aesthetics of the case.

      Wrong, a removable battery requires the space for the latch, retention all the way around the battery lid, and stronger, more reliable battery connects. All of those together would add weight, thickness, complexity, and the potential for squeaks and creaks... all of which are purely aesthetic issues.

  21. Re:A million here, a million there, and sooner or. by glop · · Score: 2, Insightful

    Actually, it had been said that the hardware in the iPhone costs 200$ or so. If that's true then Apple is not losing money on those unlocked iPhones.
    The share they get from ATT is just more profit.
    Also, the iPhone is said to have cost 150 million $ in development. Not such a big deal when they sell millions of them with a decent margin.

    There is a lot of speculation about this device, isn't there?

  22. tag: stuffthechannel by Ralph+Spoilsport · · Score: 0, Flamebait
    I wouldn't be surprised if this is typical late 90s shenanigans on the part of apple. I know a lot of software companies did this back in the 90s - they print up a jillion boxes of software and ship it to the stores, counting it as sales. This works in the short term, but when the stuff shows up on wooden palettes at the Qwiky Mart all marked down 50%, it travels back up the chain pretty quick, and affects share price. so, i would propose a tag to this article, stuffthechannel.

    RS

    --
    Shoes for Industry. Shoes for the Dead.
    1. Re:tag: stuffthechannel by illumin8 · · Score: 1

      I wouldn't be surprised if this is typical late 90s shenanigans on the part of apple. I know a lot of software companies did this back in the 90s - they print up a jillion boxes of software and ship it to the stores, counting it as sales. This works in the short term, but when the stuff shows up on wooden palettes at the Qwiky Mart all marked down 50%, it travels back up the chain pretty quick, and affects share price. so, i would propose a tag to this article, stuffthechannel.
      The only problem with this tactic is that iPhone is only sold in two places: Apple Stores and AT&T Stores. Apple can't stuff their own channel or it wouldn't count as a sale, and do you seriously think AT&T is stupid enough to take inventory of 700,000 phones? That would be bat-shit insane.
      --
      "When the president does it, that means it's not illegal." - Richard M. Nixon
    2. Re:tag: stuffthechannel by MacarooMac · · Score: 1

      The only problem with this tactic is that iPhone is only sold in two places: Apple Stores and AT&T Stores.
      Perhaps that's the case in the US. In the UK, iPhones use Telefónica O2 as he carrier and 11,00 units were sold on the launch w/end in Nov.
      iphones sold in Germany use the T-Mobile network exclusively but i've no idea what carriers and resellers are used throughout the rest of the world.
      --
      "He Who Dares Wins" ...or gets twenty-to-life for totaling their Bimmer on a poodle parade
    3. Re:tag: stuffthechannel by Anonymous Coward · · Score: 0

      I don't want to waste a mod point marking this 'redundant' even though you posted the same thing a few minutes earlier. I would be curious to know *why* you'd do such a thing?

    4. Re:tag: stuffthechannel by gnasher719 · · Score: 2, Insightful

      I wouldn't be surprised if this is typical late 90s shenanigans on the part of apple. I know a lot of software companies did this back in the 90s - they print up a jillion boxes of software and ship it to the stores, counting it as sales. This works in the short term, but when the stuff shows up on wooden palettes at the Qwiky Mart all marked down 50%, it travels back up the chain pretty quick, and affects share price. so, i would propose a tag to this article, stuffthechannel. Apple just released their number of iPhones sold in the last quarter. There are accounting rules for this: An iPhone counts as sold at the time when it is either paid for, or when the person receiving it has an obligation to pay and can't get around it (without being bankrupt). And since Enron, the SEC checks these things quite carefully.

      So now we have two choices: Either Apple has done things that will get them into deep trouble, and most likely someone into jail. Or, as unlikely as it may sound, there is just a blogger you can't get his numbers right. Or, of course, 700,000 iPhones are still wrapped up under 700,000 Christmas trees. Now what do you think is most likely?
  23. Re:Terrorists buying them to make a Beowulf Cluste by Thrip · · Score: 1

    Iran and North Korea are buying them all up to make a cluster for weapons trajectory? I hope so ... because if their experience with the iPhone is anything like mine, they'll probably decide it's not worth waiting for-freaking-ever for their map to load and give up on bombing anyone.
    --
    I'm awake! The answer is BONK!
  24. Click through and find the answer.... by grocer · · Score: 4, Informative

    Thumbs down on the blog link - the original CNet news story (link) is much more detailed and has this tidbit - Based on the number of "missing" iPhones, each of the 4,400 worldwide iPhone retailers "had more than 150 units of channel inventory at the beginning of this year" which sure sounds like they're counting them F.O.B. from Apple's warehouse door, not when it's actually sold to a consumer.

    1. Re:Click through and find the answer.... by Anonymous Coward · · Score: 0

      Based on the number of "missing" iPhones, each of the 4,400 worldwide iPhone retailers "had more than 150 units of channel inventory at the beginning of this year"

      They're stating that in order for the "missing" phones to be all "in the channel" every single store worldwide would have to have 150 phones on their shelves.

      I don't know what kind of inventory stores usually have for cellphones, but I'm thinking that if AT&T had 150 unsold phones in every single one of their stores, they'd have said something by now.

    2. Re:Click through and find the answer.... by zen_sky · · Score: 2, Informative

      Well, that's easy then. 4400*150=660,000. Apple said they are selling 20,000 iPhones a day, so that would be 600,000 per month. Soo I guess the channel is only "stuffed" for one month plus 10%. Not exactly excessive...

  25. Re:For love "#@' Enough iPhone already! by MacarooMac · · Score: 2, Informative

    Did you actually read the article? It's basically about how $ucky the iPhone combined with an AT&T contract is and suggests that tons of units are either being unlocked w/out activation (likely) or simply sitting on store shelves (less likely).
    Does that sound like an Apple-sponsored ad for their product to you?

    --
    "He Who Dares Wins" ...or gets twenty-to-life for totaling their Bimmer on a poodle parade
  26. repairs by cadience · · Score: 1

    what about replaced units?

    One row of sensors was damaged on a car accident. They replaced it with no fuss - in store!

    Surely this plus inventory at apple stores and the ton of at stores are a very large number.

  27. Re:AT&T numbers are likely for iphone specific by GigG · · Score: 1

    I'm pretty sure Apple knows exactly how many iPhones have been activated on the AT&T network. Mainly because you have to do it through iTunes.

    --
    Is buying a Harley Davidson as your first motorcycle since you were 16 at age 49 a midlife crisis issue?
  28. I account for one. by zorn169 · · Score: 1

    My aunt got an iPhone at launch and i guarantee it is still sitting in the box. I know it is hard to believe, but there are people that buy expensive toys and never play with them.

    1. Re:I account for one. by zippthorne · · Score: 1

      Assuming this isn't a joke, did you ask why? That's a lot of money to spend on not using something that's not going to be worth anything in 3-5 years.

      --
      Can you be Even More Awesome?!
  29. Dammit, what are you guys doing? by Anonymous Coward · · Score: 0

    Steve said we don't talk about sales numbers. EVER. Steve said it's selling gangbusters, gonna rewrite everyone else's stupid rules about marketing and customer service and lock-in, and dammit, we are OBLIGATED to believe him. If you're arguing with Steve, it's because you're stupid and uncool and just don't get it. Don't ever forget this: Chuck Norris has nothing on Steve. NOTHING.

  30. 2 million new customers or total? by w3woody · · Score: 4, Insightful

    I went poking around AT&T's investor relations site, and it seems to me (though I didn't spend a whole lot of time there) that the 2 million number is the number of new AT&T customers who switched to AT&T wireless because of the iPhone. This does not count customers (such as myself) who kept my existing service but switched devices (in my case, from a Motorola RAZR to an iPhone).

    If this is the case, it would explain a large amount of that gap.

    I think part of the problem here is that the major media would like to report that the iPhone is a dismal failure somehow--and channel stuffing (a'la Microsoft's channel stuffing of the Zune) is one way to paint this picture. However, given the number of units I've seen on the shelves at the various stores I've gone to, I cannot imagine that 30% of Apple's iPhone stock was stuffed into the channel: that would mean that every Apple and AT&T store would have a mountain of iPhones sitting in the corner, and I'm not seeing it.

    1. Re:2 million new customers or total? by MMC+Monster · · Score: 1

      My dad is a long-time AT&T customer that upgraded to the iPhone as well. As for me, I don't own an iPhone yet but plan to keep AT&T as my carrier so that my options are open in the future.

      A number of people I know (Okay, four people I know) are waiting for their current contracts to finish so that they can get iPhones. Only one is a tech guy. The rest are (apparently) normal folks.

      --
      Help! I'm a slashdot refugee.
    2. Re:2 million new customers or total? by ToasterMonkey · · Score: 1

      That's what I suspected too, new contracts vs. existing AT&T customers. I thought all of Slashdot had gone insane until I read your post.

    3. Re:2 million new customers or total? by Anonymous Coward · · Score: 0

      You are wrong.

      2 million AT&T iphone subscribers --- with 40% of them being new customers.

    4. Re:2 million new customers or total? by stubear · · Score: 1

      Every Apple store I've been into doesn't have boxes of many of their products lining the shelves. You have to ask someone to "place an order" so a runner can go in the back and get whatever it is you are buying. I might also add that the handhelds they use to place these orders runs Windows CE. Funny how the Apple store requires a Microsoft product to function properly. The point is, you won't likely see boxes of anything piled up at any Apple store because this is not how they promote their products and create that "Apple store ambience".

  31. Only 20% being unlocked? by Ehsan · · Score: 4, Informative

    I'm currently working in Dubai, and I know about 20 people who use unlocked iPhones. I also see people with iPhones everywhere I go, as they are sold in all the phone shops here (unlocked, of course). I also know a lot of people in Saudi Arabia and Bahrain who are using them... and the Middle East accounts for one of the highest numbers of mobile users anywhere in the world. So why do they estimate only 20% of iPhones being unlocked? I always thought it was closer to 50%

    1. Re:Only 20% being unlocked? by cbart387 · · Score: 1

      It could be different areas have different states of unlock. This would lead to the percentage being somewhere between the two extreme ends (low and high % of unlock). I'd imagine this would be the case and possibly Dubai is on the high end (meaning the average is somewhere below it).

      --
      Lack of planning on your part does not constitute an emergency on mine.
    2. Re:Only 20% being unlocked? by Jon_E · · Score: 1

      was just in the apple store the other day with a lady next to me that couldn't speak a lick of english except for "5 iphones please" - talk to the geniuses who sell these on a daily basis .. my guess is it's a hot ticket on most of the overseas markets.

    3. Re:Only 20% being unlocked? by mjwx · · Score: 1

      Indeed,

      On a trip to Thailand last year there must have been about 100 iphones on display in the MBK building. Also something tells me that Asia would have a higher number of mobile phone users than the Mid East.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    4. Re:Only 20% being unlocked? by Anonymous Coward · · Score: 0

      I'd think that 100% of iPhone users in Dubai are using an unlocked one. It's probably the same everywhere except the US, UK, France, Germany and a handful of other countries, acounting only for a tiny fraction of the world's population.

    5. Re:Only 20% being unlocked? by Anonymous Coward · · Score: 0

      There's a AT&T in Dubai?

  32. Cool by EB+FE · · Score: 1

    Can we expect a price drop soon?

    --
    Vital papers will demonstrate their vitality by moving to where you can't find them.
  33. Complexity? by BigJClark · · Score: 1

    Maybe its due to the inherit complexity of the iPhones. I know, that when I'm working/busy, I can't be bothered to navigate through menus/fancy slide shows. All I want to do is type 7 numbers and talk. I can imagine, it seemed like a good idea at the time to buy the iPhone, but people are probably tending to revert to the older, simpler, quicker technology of the classic cel.

    --

    Hi, I Boris. Hear fix bear, yes?
    1. Re:Complexity? by BoomerSooner · · Score: 1

      You actually type in numbers in your cell? I couldn't tell you the last time I typed in a number.

    2. Re:Complexity? by geekoid · · Score: 1

      So you only have time for 7 pushes instead of 3?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    3. Re:Complexity? by stewbacca · · Score: 1

      With the latest update, all you have to do is use a phone locator online service, type in a number, then put that page on the main screen of your iPhone. 1-button access to a 7-digit phone number.

    4. Re:Complexity? by Tony+Hoyle · · Score: 1

      Iphone is:

      Click top of phone
      Slide
      Push to select phone application
      Push to select keypad (hell only knows why ths isn't default)
      Dial number
      Select Dial

      Every other phone is
      Dial number
      Press dial.

      For a 7 digit number that's 12 for iphone and 8 for every other phone.

    5. Re:Complexity? by Tony+Hoyle · · Score: 1

      That's fine if you only know about 3 people and call them all the time. Any standard phone can do this.

      For those us that actually *use* phones that won't cut it.

    6. Re:Complexity? by mr_matticus · · Score: 1

      Let's try that again. First, you include actions that are not strictly necessary in the iPhone procedure, while ignoring similar actions that might be configured on typical phones. Second, you use as a point of reference input dialing--who does that?

      On an iPhone, it can be as quick as wake/sleep, double tap home button, select contact. Other phones have a puttering contacts list that takes just as long to handle as completing the whole process on an iPhone.

      Alternatively, you can disable autolock and leave the phone in the keypad, at which point the process becomes:
      1. Press sleep/wake
      2. Dial number
      3. Press call

      Compare to:
      1. Flip open phone (or press unlock sequence for a brick phone)
      2. Dial number
      3. Press dial.

      Complexity, my ass.

  34. Makes no sense by edwardpickman · · Score: 1

    How can they be sold but still setting on store shelves? Unless there's a major shipping backlog sold phones are sold phones and wouldn't count as inventory. Probably more than estimated have at least tried to unlock them but this sounds more like a math error as well as underestimating unlocked iPhones. The quote just doesn't make sense.

  35. Or Bricked by Skevin · · Score: 4, Funny

    I work as a Construction Contractor for some rather extravagant celebrities*. One of my more indulgent clients asked what was the most expensive building materials I've ever seen. Well, I heard on Slashdot that unlocked iPhones make excellent bricks...

    Tomorrow, I'm getting my sixth truckload. The North Wing is almost complete, and then I'll start working on the guest house.

    * (just kidding, of course. I'm a working techie stiff just like everyone else here)

    Solomon

    --
    "Twice half-assed makes an ass whole." --Solomon K. Chang
    1. Re:Or Bricked by lavaface · · Score: 1
      I'm a working techie stiff just like everyone else here

      Hey! Some of us are unemployed. And we live, you know, in the basement . . . at our parents house ; P

  36. So pull a different number out of your ass by Sloppy · · Score: 1, Insightful

    Let me get this straight: if we pull a number like 20% out of our ass, as our estimate for part of the accounting, then not all the phones are accounted for. Here's a tip: maybe a different completely arbitrary number will work better than the first completely arbitrary number.

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  37. Re:FP by Fieryphoenix · · Score: 3, Funny

    With all the junk passing for off topic first posts lately, it's kind of a pleasure just to see a plain old, old-school one for once.

  38. Re:A million here, a million there, and sooner or. by ceoyoyo · · Score: 1

    With the release of the iPod touch you should be able to figure out pretty closely how much an iPhone costs, because Apple definitely isn't selling the Touch at a loss. The iPhone is pretty much identical except for Bluetooth and cell chips, plus a microphone. All of which together are probably a few dollars.

    Apple isn't subsidizing iPhone hardware.

  39. Funny Math by Anonymous Coward · · Score: 0

    So they are saying that 700,000 iPhones are reported as sold, but they think they are still sitting on the shelf? Cool! Apple can sell them again! Finally Apple has come up with a way to counter Microsoft selling copies of an OS, and then charging you again if you replace that OS with a ghost image.

  40. Over a million Slashdot users by davidwr · · Score: 0, Offtopic

    That averages out to less than two apiece.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  41. Re:I knew it! by timster · · Score: 2, Insightful

    No, silly-pants, this has nothing to do with some giant culture war. You made a joke and somebody thought it wasn't funny. As always throughout history, every time you use humor you are taking a risk. That's what makes humor interesting and why comedians have thick skins. If you get upset when people don't like your jokes, perhaps humor is not for you.

    --
    I have seen the future, and it is inconvenient.
  42. Re:Terrorists buying them to make a Beowulf Cluste by Anonymous Coward · · Score: 1, Funny

    It doesn't help that Osama got a brown Zune for Christmas

    Makes sense.. That thing is a bomb.

  43. Crazy People. by jellomizer · · Score: 3, Funny

    1. Colectors buy one keep the seconds in its origional package.
    2. Horders buy as many as possible and sell them on ebay.
    3. Short attention span. They bought one but never decided to use it.
    4. Stupid People. They couldn't figure out how to use it.
    5. Loose recepts. Broken or didn't like it but never returned it.
    6. Like to break things. Will it blend what makes it tick.
    7. Uninformed after spending $600 on a phone they realize their home has no Cell reception
    8. Competitors buy the phone and study it for its secrets.
    9. Compulsive cleaning spouce. New Toy left in the wrong spot got tossed.
    10. Enemies a person is jelious that you just got an iPhone... Have it dissapar.
    11. Kids... Shiny... Small... Toilet... Nuff said.
    12. Gifts that were never open.
    I bet more too.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    1. Re:Crazy People. by bark76 · · Score: 1

      13. Alien abduction

  44. Re:Terrorists buying them to make a Beowulf Cluste by Basehart · · Score: 3, Funny

    There's no way Osama would use a Zune. He's an iPod Nano guy if ever I saw one.

  45. Look under the there... by BrainGravy · · Score: 2, Funny

    I just found 700,000 iPhones hidden under my AT&T bill.

  46. Apple's business model... by Zebra_X · · Score: 1

    So apple sells direct to customers... what if they treat ATT as a "customer" that buys a few hundred thousand phones. So apple has "sold" those phones to ATT and they expect to sell those phones - but given the gulf between the sales and the activations it seems that ATT is not in fact, selling those phones.

  47. 1351 iPhones on eBay right now by Animats · · Score: 1

    There are 1351 iPhones on eBay right now. Most of them are unlocked. Some of the sellers have hundreds of iPhones. So a sizable chunk of that unsold inventory is over on eBay.

    It's like the early days of the PS3, when eBay sellers overbought and there was soon a glut of the things on eBay for months, selling below retail.

  48. Re:Terrorists buying them to make a Beowulf Cluste by RealGrouchy · · Score: 3, Funny

    Actually, Kim Jong Il got two, because he got a hole in one the first time he tried using it.

    - RG>

    --
    Hey pal, this isn't a pleasantforest, so don't waste my time with pleasantries!
  49. Re:Terrorists buying them to make a Beowulf Cluste by Dragonslicer · · Score: 3, Funny

    Mahmoud Ahmadidntgetaniphonejad?

  50. Don't forget the fees by enzo_romeo · · Score: 4, Informative

    Depending on what state you live in, and what ATT can get away with, there are usually some monthly fees on top of your bill. Like the taxes from the local government, and then the fee they charge you to pay the taxes, and whatever else they like to bilk from you. In Seattle my friend is on the $60/mo plan but has an additional $20 in fees from ATT to make it nearly $80/mo for his iPhone.

    Still pretty dang expensive for me, even at the lowest rate. I'll sign on when I can get an iPhone for $200 and then pay $40/mo. I take after my dad who should have founded cheapbastard.com.

    1. Re:Don't forget the fees by Anonymous Coward · · Score: 0

      hate to break this to you but that additional $20 is NOT AT&T fees

      They are a little thing called TAXES... got a problem with them drive down to Olympia and bang a few heads and then hop on a plane and jet down to DC and repeat.

      They are no more AT&T fees then the sales tax on your latest computer is a *insert retailer* fee. They are just the people collecting it.

  51. Re:Terrorists buying them to make a Beowulf Cluste by Anonymous Coward · · Score: 5, Funny

    Actually Osama's not so pissed that he got a Zune as that he got it for Christmas .

  52. Some are just sleeping. by northernboy · · Score: 2, Interesting

    The only iPhone I've actually held in my hand was not activated. My nephew got it during an internship, when that ended, the AT&T account was terminated and they let him keep it. It's just sleeping, waiting for the day he feels like paying to use it. But it's not in any inventory anywhere.

  53. iPhones are hidden by webword · · Score: 1

    Did you know that iPhones are found in hipbones?

    (subtle...)

  54. A lot of northern traffic by Anonymous Coward · · Score: 0

    As someone from Canada who has flown to Boston on work and bought six phones solely to give to friends/family to be unlocked here, I'm sure I've helped keep the numbers off. iPhones sell like crazy here, too, and Apple should (yet again) realise that just because they don't want to give us movie downloads, or iTunes plus, not much will stop us from getting a physical product.

    We just got television show downloads through iTunes /last month/, and at that, there's fewer than a dozen shows we can buy.

    Please, Apple, stop treating Canada worse than Mexico.

  55. Ahem by sneakyimp · · Score: 0, Flamebait

    Don't really mean to say the "maths don't add up". 'Math' after all is short for 'mathematics,' which is pural.

    1. Re:Ahem by stewbacca · · Score: 2

      Well, "maths" is definitely one of the hardest things for an American living in the UK to get used to. I still can't bring myself to say "maths" or use plural conjucations for corporations. "Apple are selling.." just never sounds right.

    2. Re:Ahem by gnick · · Score: 2

      In the US, 'math' is traditionally singular and is roughly synonymous with "The science or application of mathematics."
      In the UK, 'maths' is traditionally plural and is short for 'mathematics'.

      --
      He's getting rather old, but he's a good mouse.
    3. Re:Ahem by LionMage · · Score: 1
      Well, at least you got modded properly as Flamebait.

      In actuality, "math" as an abbreviation of "mathematics" is older than "maths." Which would make the British version the neologism here. When you consider how Americans treat collective nouns compared to how the British treat collective nouns, this makes a lot of sense.

      See this article from the online etymology dictionary, which states:

      Math is the Amer.Eng. shortening, attested from 1890; the British preference, maths is attested from 1911.
      It should also be noted that "mathematic" was the term used until the 17th century, according to this article; it was pluralized in the 17th century. It's not too tough to see that the linguistic conservatism of the North American colonists probably played a role in our use of the term "math."

      I will never understand the ugly provincialism that gives some people the (mistaken) notion that their being British gives them the right to make value judgments on American English. American and British English are two different languages with a common ancestry. The etymology link I gave above was gleaned from this blog entry, in which one commenter noted:

      To me, "maths vs math" isn't a big deal at all. I'm an American, and when I said "math" around my British friend the other day, he blew up, criticizing me for saying it incorrectly and being an idiot. Not cool. I'm surprised at how sensitive people are over the tiniest little things.
      Not cool indeed. Talk about a sense of entitlement!
    4. Re:Ahem by sneakyimp · · Score: 1

      Bless you! I experienced the same explosion from two Irish guys and have been looking for a counterattack ever since. I now consider myself properly armed.

      I think it's also worth pointing out that Noah Webster's "A Compendious Dictionary of the English Language" was published in 1806. The Oxford English Dictionary wasn't first published until 1928 or something...in fact, Oxford University only formed a "Unregistered Words Committee" in 1857 -- more than 50 years later.

      Call this flamebait if you must, but the hubris of the British isles must be called to task. Even if it is the reason for America's existence.

    5. Re:Ahem by Anonymous+Cowhead · · Score: 2, Insightful

      [...]or use plural conjucations for corporations. "Apple are selling.." just never sounds right. Yah, but you probably have no problem using "they" when referring to them, do you? "They just introduced a new iPod..." Bit inconsistent, no?
  56. Some synonyms for "channel stuffing" by jhylkema · · Score: 1

    include "cooking the books" and "accounting fraud."

  57. Evil! by Anonymous Coward · · Score: 0

    > Osama got a brown Zune for Christmas

    The man is FAR more evil than I ever realized! I hope for the childrens' sake that they catch him soon!

  58. How Many Bytes in an Apple? by Doc+Ruby · · Score: 1

    Apple's worst business skill has always been estimating demand and managing supply to meet it. That's one main reason corporations never adopted Macs: if they hire 1500 new people, what if Apple's supply chain has a slowdown at that time? The single source of Macs through Apple alone made that bottleneck a defining problem in planning to use Macs in IT. Even as recently as this decade, the iMac/iPod Era, Apple has continued to brag about demand outstripping supply, leaving "empty shelves" after product intros, as if that were good for anyone. Including Apple: every empty, grasping hand at that empty shelf is a failed sale, that could be satisfied by one of Apple's many competitors. And since those competitors' products don't run Apple software (though that's mitigated a little by cross-platform iPod peripherals), that's often a lost customer, for their entire life.

    Extra unsold stock also means Apple has the opposite problem, cost of production and distribution without return from sales. Which also pisses off sales channel partners, which might decide not to risk it on Apple products when manageable supply chains (and believable marketing projections) can be had with Apple's competition.

    --

    --
    make install -not war

    1. Re:How Many Bytes in an Apple? by Anonymous Coward · · Score: 0

      Even as recently as this decade, the iMac/iPod Era, Apple has continued to brag about demand outstripping supply, leaving "empty shelves" after product intros, as if that were good for anyone. Including Apple: every empty, grasping hand at that empty shelf is a failed sale, that could be satisfied by one of Apple's many competitors.

      Yes, but it creates buzz and marketing. People talk about your product being so wonderful that it is sold out. That has value to Apple, especially since they try to position themselves as a premium product and not overpriced crap.

      There are marketing companies that will get people to camp out in line for the cool concert, video game, cell phone, movie, etc. Lazy journalists write stories about these people, which is free marketing for you.

    2. Re:How Many Bytes in an Apple? by Doc+Ruby · · Score: 1

      Yes, that's true, but the buzz comes at the cost of others in the market knowing they can't rely on your supply chain. Which, among other ill effects (like a rollercoaster supply chain, with all its extra inefficiency costs), means corporations won't buy into your platform, which means no critical mass in that major market segment, a self-reinforcing failure.

      --

      --
      make install -not war

  59. alternativly by geekoid · · Score: 1

    there estimate could be wrong.

    really, how hard is it to find out how many sold?

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  60. random anecdote by kisrael · · Score: 1

    I have an iPhone. Now I know about the tendency of "after you buy a Ford, there seem to be a lot more Fords around", but even taking that into account, I see more iPhones than I expected to around Boston, especially on the T. I'd say the only single device I notice more of are Sidekicks.

    Boston might not be representative, but given that it's a pretty pricey thing, I'm impressed with its marketing inroads already. (I'm also impressed with how much new functionality the upgrades have been adding)

    --
    SO YOU'RE GOING TO DIE: The Comic for Dealing with Death
    1. Re:random anecdote by dunkelfalke · · Score: 1

      i have yet to see a single one yet, people use lots of htc phones instead.

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    2. Re:random anecdote by kisrael · · Score: 1

      so where are you?

      --
      SO YOU'RE GOING TO DIE: The Comic for Dealing with Death
    3. Re:random anecdote by dunkelfalke · · Score: 1

      dortmund, germany.

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
  61. One paragraph constitutes news? by stewbacca · · Score: 1

    The story is void of facts. One paragraph declaring Apple iPhone sales don't add up? Is that all they've got? The MySpace story above this one has more value than this.

  62. sell-in vs. sell-thru by papaver1 · · Score: 2, Informative

    The discrepancy is probably because of sell-in and sell-thru numbers. This is what we use in the game industry atleast. The studio get profits from sell-in numbers; units that are in stores. Sell-thru numbers on the other hand are units that have been sold to the consumer. Apple is probably using sell-in numbers to make it look like there is a huge demand and that it is a hit. When they say they want to sell 2 million next year, they are really just saying we want that many units sold to the stores. The numbers will soon level out as most stores will be stocked and will stop ordering more, until they have sold out. Then the increase in sell-in and sell-thru will usually be around the same.

  63. None are 'missing'. They've just been unlocked. by _.-+thimk!+-._ · · Score: 1

    Unlike when talking about Microsoft's sales numbers for Vista, I think it's pretty unlikely that anyone is cooking the books here.

    There is no real discrepancy. That number can be easily accounted for in terms of unlocked iPhones, for folks who don't want, or can't use AT&T. Twenty percent seems to be a perfectly reasonable number for that.

    I think if you review numbers for sales of other phones (note the significant decrease in sales of other leading phones, such as the Razr) those will also support the high sales figures reported for the iPhone.

    Apple announcing the SDK prior to activating my iPhone after Christmas is the only reason I bothered to sign up with AT&T (though I still have some reservations about it). My reasoning was that if I became too unhappy, I'd kick AT&T to the curb, eat the early contract cancellation, and go to another carrier. (And, in the meantime, I still get the enhanced voice-mail my voice-mail message count, and I can still hack away at it, even with AT&T as my carrier.)

    I also know a lot of savvy folks who have taken the opportunity to negotiate discounts on their existing phones and services because the other wireless carriers are scared to death of the iPhone, and of folks leaving them to switch to it. Even if only four out of five of those folks are leaving for AT&T/Cingular, they still have plenty to worry about.

  64. Not activated. Hacked. Used out of USA. by WoTG · · Score: 1

    I've met at least a few people in Canada who drove down to the USA to buy an iPhone. They then got it unlocked. And now use it on Rogers, our GSM cellphone carrier - of course, they don't use the data much. But it's still a great phone with WiFi.

    I'm sure this happens quite a bit, even in the USA. Not everyone wants to pay $$$ for a monthly plan or wants to be locked in to a multi-year contract.

  65. WiFi? by Matrix14 · · Score: 1

    Given that the thing also connects to WiFi, and, at least in urban environments, there is unsecured WiFi everywhere, maybe people are not activating it and using it as a mobile WiFi connection.

    1. Re:WiFi? by prockcore · · Score: 1

      Then they'd be part of the unlocker group. You can't use an iphone for anything (not even as an mp3 player) with activating unless you hack it.

  66. here's how my friend did it... by mathfeel · · Score: 1

    The iphone is still not available in Taiwan. So when he went back to visit his family during winter break, he bought 4 iphones which he then unloaded to an unlocker-reseller in Taiwan. This made him a cool $200 profit. If you thought the iphone is already expensive (I do), you won't believe what kind of cash some willing to pay just to be trendy.

    How did he got hooked up with a reseller? Apparently, there are plenty of posts on discussion board (of Taiwan, so in Chinese) asking if anyone living in the states are going to TW soon. It's guaranteed profit without the trouble of packing (since you are packing for the trip anyway) and shipping.

    Here's another funny tips my friend told me. Pack the phone in your carry-on because apparently there are many cases airport security or luggage handler stealing these hot items (iphone, wii, etc). Since most people don't insure their luggage and can't somehow prove what's inside. They are out of luck.

    --
    The only possible interpretation of any research whatever in the 'social sciences' is: some do, some don't
  67. not real? by psychosmyth · · Score: 1

    Numbers aren't real. Inventories are pretend.

  68. E.T. iPhone Home by ryanscottjones · · Score: 1

    Ockham's razor is telling me they're in a New Mexican landfill next to those Atari 2600 ET cartridges. Two glowing finger scrolling? http://en.wikipedia.org/wiki/E.T._the_Extra-Terrestrial_(Atari_2600)

  69. Re:Terrorists buying them to make a Beowulf Cluste by stranger_to_himself · · Score: 1

    Actually, Kim Jong Il got two, because he got a hole in one the first time he tried using it.

    huh?

  70. Flown the Nest by rediguana · · Score: 1

    Tthey have probably left the shores of the land of the free and made their way to other countries that have GSM networks. We've had quite a few come here to New Zealand. I'm sure there have been loads of exports from the US because they weren't made available sooner in other countries.

  71. Re:I knew it! by El+Yanqui · · Score: 1

    I have a gay relative and I'll leave it that because I don't want to inadvertently out him

    It's Joe, isn't it. I knew it!

    --
    Well, thanks to the Internet, I'm now bored with sex.
  72. Supply and Demand by nickruiz · · Score: 1

    Now wouldn't it just tick off all of those Apple enthusiasts that bought the iPhone two days ago for $400 if Apple already dropped the phone's price to $150? Personally, I think the OpenMoko phone is cooler anyway. Linux geeks and design nuts, unite!

  73. Re:Terrorists buying them to make a Beowulf Cluste by porcupine8 · · Score: 2, Funny
    a little more north

    Of COURSE! Santa is stockpiling so that he doesn't run into the same situation next Christmas with the iPhone that he had this year with the Wii!

    --
    Warning: Apple/Nintendo fangirl. Likes her electronics cute & cuddly. May be rabid.
  74. They Said Sold... by His+Shadow · · Score: 1

    ...not shipped. There is a difference. If Apple said they "shipped" so many iPhones, you could claim they are, like X-Boxes, sitting on shelves. They said sold, and the most liekly explanation is that the unlocking count is much higher than the analyst states. Seeing as how it's his estimate, he's drawing the conclusion he wants from the data.

    --

    Fiat Homos et Pereat Theos

    1. Re:They Said Sold... by Anonymous Coward · · Score: 0

      Before any Keynote speech and any conference phone calls, they put a bunch of legal sentences saying that you must look at the filings as the correct information.

      And all the Apple SEC filings are based on "shipping" units.

  75. Hack wait or outside the USA by AHuxley · · Score: 1

    Could be people are waiting for the perfect safe hack or they are outside the USA.

    --
    Domestic spying is now "Benign Information Gathering"
  76. seems like a tricky calculation by tgibbs · · Score: 1

    Seems like this sort of analysis depends heavily on different companies being exactly "in sync" in terms of their accounting. When AT&T says that it "ended" 2007 with 2M customers, does that really mean "as of Dec 31"? Or is there a little lag in AT&T's accounting? Are the 4M phones all shipped, or does that include orders and phones in transit? How about phones in transit to overseas? Are there any phones being shipped to other countries in anticipation of product launch?

  77. Re:My Random Anecdote by BSDetector · · Score: 0

    Modded to -1!!! Why!!! Are only pro-Apple anecdotes allowed??? Slashdot censorship!!!!

  78. Canada by Anonymous Coward · · Score: 0

    A surprising number of them are in Canada. There's quite a thriving market up here. Since there's no official carrier, everyone has to unlock them.

    http://iphonenow.ca/

  79. Re:Terrorists buying them to make a Beowulf Cluste by 3vi1 · · Score: 1

    huh?
    He always gets Kim Jong Il confused with Tiger Woods.
  80. Re:A million here, a million there, and sooner or. by Anonymous Coward · · Score: 0

    Actually, it had been said that the hardware in the iPhone costs 200$ or so. If that's true then Apple is not losing money on those unlocked iPhones. The share they get from ATT is just more profit. Because the on-going costs of the development team are essentially zero! Not to mention HR, the janitors, security, the cafeteria, etc. All free! Apple employees work for free, eating magic pixie dust! Truly, a miraculous place to work.
  81. Re:My Random Anecdote by Tony+Hoyle · · Score: 1

    As for me, I have personally seen THREE (3) only. Yes - I said 3!!! Personally I've seen exactly one, the one I have.

    They really aren't selling as well as slashdot makes out sometimes.
  82. Re:Terrorists buying them to make a Beowulf Cluste by RealGrouchy · · Score: 1

    According to the North Korean propaganda, Kim Jong Il got tree holes-in-one the first time he ever tried playing golf.

    - RG>

    --
    Hey pal, this isn't a pleasantforest, so don't waste my time with pleasantries!
  83. I thought this article was about the calc bug by mrgodzilla · · Score: 1

    type in 0.0005 X X =

    then keep hitting = to again multiply the result by 0.0005

    the number should get smaller and smaller. However, at some point, the number becomes VERY large.

    give it a shot. some type of bug.

  84. Re:Terrorists buying them to make a Beowulf Cluste by sumdumass · · Score: 1

    That's what his friends call him. I think he is ion charge of Iran or something.

  85. Re:Terrorists buying them to make a Beowulf Cluste by sumdumass · · Score: 1

    Yea, that's why he is so pissed at the western world. As a Muslim, he isn't supposed to celebrate Christmas in the open like we can in the western worlds. Something about their religion relegates Jesus to a prophet/profit or something.

  86. Re:AT&T numbers are likely for iphone specific by gerardrj · · Score: 1

    Are there really people who need more that 6,000 minutes per month ($219)? That's talking 8 hours a day for over 12 days. I can't even get to my 450 minutes limit.

    --
    Article X: The powers not delegated... by the Constitution...are reserved...to the people
  87. Re:A million here, a million there, and sooner or. by Lally+Singh · · Score: 1

    Apple pays ~$254 per device to produce (not including amortized dev costs). That's $145 per device they're still making in profit. They've sold over 1 million of them, so they have their dev costs back.

    So unlocked phones only give apple $145, not $145 + $18/month from AT&T.

    If you're neutral about Apple and negative about AT&T, you've gotta appreciate apple sticking it to them like this.

    If you're against both of them, well, learn more about their competition :-)

    --
    Care about electronic freedom? Consider donating to the EFF!
  88. Re:FP by armada · · Score: 0, Flamebait

    How sad an existence do you have to have to draw pleasure from a "first post"? Specially when you are not actually posting anything.

    --
    "This message was sent from an Apple //GS"
  89. Re:I knew it! by gyrogeerloose · · Score: 1

    I have a bunch of black turtle necks and black jeans

    See, here's where you went wrong. Jobs wears black mock turtlenecks and blue jeans.

    No way you're gonna pass for an Apple Fanboy if you can't get those two basic things right ;-)

    --
    This ain't rocket surgery.
  90. Re:Terrorists buying them to make a Beowulf Cluste by MonsterTrimble · · Score: 1

    Maybe it's me, and I realize this is Slashdot, but what the hell is up with slogging on the BROWN Zune. Personally, I think it looks the best of the three choices, Actually, notwithstanding the inherent Microsoft stuff, I would rather buy a Brown Zune then any other Zune or iPod. White and Apple bores me.

    Actually, while I'm on this rant, let me get this off my chest: I WANT Microsoft to be big and bad. I WANT Apple to be big and Bad. Why? Because Linux needs the opponent to get better. Do you think Linux would be where it is today without a worthy adversary? Not on your life. Linux vs Windows vs OSX. Each pushes the other beyond what has been done. And in the end, we (the consumers) win.

    Note: I run Kubuntu 7.10 on an AMD Sempron (1.6 Ghz) and it owns my Windows box at work (3 Ghz P4).

    --
    I call it 'The Aristocrats'
  91. He Must Be Lying Too... by BSDetector · · Score: 0

    Apple chief operating officer Tim Cook told analysts this week that the company believes the number of unlocked iPhones in the wild to be "significant," but declined to furnish accurate figures.

  92. oo! oooh Touch walls! by emj · · Score: 1

    Can you feel them?

  93. Re:FP by Anonymous Coward · · Score: 0

    You're just bitter because he didn't like your 'fr1st ps0t!'

  94. Re:Terrorists buying them to make a Beowulf Cluste by mjwx · · Score: 2, Informative

    In Islam, Jesus is still a prophet, and a highly regarded one, he's just not the messiah like in Christianity. The Koran is based of the old testament but places more emphasis on the teachings of Mohammed.

    --
    Calling someone a "hater" only means you can not rationally rebut their argument.
  95. Re:Terrorists buying them to make a Beowulf Cluste by Anonymous Coward · · Score: 0

    Whatever...

    Can we get back to the Ferrari car analogy ? I was having a blast laughing at the Italians.

  96. Threadjack. Thank you, AC by Corwn+of+Amber · · Score: 1

    frost piss thread, must hijack.

    I haven't RTFA. Don't need to, it's just evident where the non-activated iPhones are! They were all sold on eBay, and the rest are gathering dust because I could not buy one. $600 = 400 euro, now go see on eBay how much they really cost on the OPEN market.

    The only provider of iPhones, the only desirable smartphone, are selling it at a delirious price point, and then, the people who buy them for selling, to fulfill the *demand* don't want to lose money on them, thus, they sell the iPhones for much much more, making them unaffordable.

    Simple enough. If Apple want to see activated iPhones, they just have to sell them at a right price. But that will not happen. Steve Jobs prefers to serve "niche needs" that are everyone's needs, and let everyone buy the cheap crap rip-offs.

    Without that "high margin or death" mentality, Apple would be bigger than Matsushita now.

    --
    Making laws based on opinions that stem up from false informations leads to witch hunts.
  97. Re:I knew it! by Anonymous Coward · · Score: 0

    ....and upon opening and pointing to his new MacBook he said, "Yep, I'm gay!" Great. Now, everytime somone opens their MacBook, another gay person will feel compelled to out himself. Thanks dickwad.
  98. Re:For love "#@' Enough iPhone already! by siyavash · · Score: 1

    Yes, it does.

  99. Why isnt anyone mentioning India by qwan · · Score: 1

    I live in small city of India and almost every Tom dick and harry has an iphone here. It is available for 30000 INR (750$ approx). Unlocked to work with any Indian network SiM. There are atleast 100 cities that are much bigger than my city and I am sure that they have iphones in the same proportions as my city if not more. Bangalorians and Hyderabadis(two of the major silicon cities in India) were the first to release videos on youtube showing how to hack and make Indian Sims work with. I remember one guy had a pre-ordered iphone,which his relative had pre-ordered for him. It was sent out to him and he opened the sealed pack right there on his youtube video. I am sure there are atleast thousands in the MiddleEast too. I know this because one guy had come to me to hack his Iphone(the guy had updated the firmware) and he had got his phone from the middleeast. I am sure that there are atleast half of those phones are in India and the middle east.

  100. iPhone newbie by PPH · · Score: 1
    OK, I don't know sh*t about iPhones and their activation. But is it possible that some people bought one and pulled the existing AT&T SIM out of another phone to move to their iPhone?


    If they never sign up for all the extra services and just used the thing as a phone, could AT&T still track them as iPhones?

    --
    Have gnu, will travel.
  101. How is a Mac "less capable than a PC"? by LKM · · Score: 1

    Macs are prettier than PCs, but not as powerful. You get something that looks nice, but is less capable

    Define "powerful" and "capable". It seems the MacBook Pro is 2007's fastest Vista notebook. Mac OS X combines the power of Unix with frontend applications like Final Cut Pro, Aperture, Keynote or iDVD. I can run Internet Explorer 6, Internet Explorer 7, Safari and different versions of Firefox at the same time. I can run grep and gcc in Terminal while opening a .doc file in a native version of Word. I got a whole, fully functional IDE as part of my OS.

    Now explain to me how my Mac is only prettier than a PC and not as powerful. Explain to me how my Mac, which runs Windows, Linux and Mac OS X at the same time, is less capable than a PC.

  102. "Unaccounted"... by LKM · · Score: 1

    there are still 700,000 iPhones unaccounted for

    Like mine, they are unlocked and used on non-sanctioned carrierrs. No mystery there.

  103. Seriously though by Anonymous Coward · · Score: 0

    Prowd owner of an unlocked iPhone since yesterday. And it is much more fun than I thought.

    I work at a company selling Mac stuff, in a country where you can't officially buy the iPhone yet. Many of our customers have bought the iPhone, many bought them directly in the US ("At least I've got one now, the activation problem can wait"). Many of them just lay in drawers waiting to be "fixed" by a "friend". Many just lay in drawers. It's a strange thing, this iPhone business.

    Need to post this anonymously. Coward yes.

  104. Better to be Paid or Unpaid? by meehawl · · Score: 1

    It makes me wonder how many MS shills and bloggers they have on the payroll

    However many thay have, it can't compare to the staggering number of *unpaid* shills and bloggers that Apple gets basically everywhere. Actually, I take that back - some are "paid". There's a huge ecology out there of Apple Polishers furiously blogging about their Apple, getting high-rate gadget AdSense, and relying on each other for clickthroughs.

    --

    Da Blog
  105. Piling up on store shelves, awaiting... by A+New+Normalcy · · Score: 1

    ...mass buying upon the next price reduction.

    --
    ...Lorenzo / I'm into kinky crustaceans. I just discovered internet praWn.
  106. Blame Canada! by billcopc · · Score: 1

    The fact that my local PC retailer (read: Chinese import scam-shop) sells unlocked iPhones en-masse probably isn't helping. I'm in Canada. AFAIK, Apple isn't selling iPhones in Canada (yet). Me, I just hate that particular shop, so everything they do must be evil! >:-$

    It's silly for Apple/AT&T to ever think they could lock their phones down. There are entire (clandestine) businesses built around the unlocking/hacking of cell phones. I personally think our immigrants should seek employment in more respectable industries, but that's just one more reason why I'm not in charge.

    --
    -Billco, Fnarg.com
  107. People are buying more then one by Anonymous Coward · · Score: 0

    I remember reading an article that some people were buying more then one to keep in case they have a problem with the battery and they can't live without it for more then ten minutes. I wonder if that might have something to do with it?

    Or it could be that some are buying two phones so they can charge one and be using the other phone because of how important they are

  108. crazy by scolbert · · Score: 0

    That's so crazy it all doesn't make sense. It would be hard to believe that that many units are hanging out in inventory. In fact, its not believable. Something doesn't compute

  109. Re:Terrorists buying them to make a Beowulf Cluste by The+One+and+Only · · Score: 1

    No--in Islam, Jesus is still the Messiah. He just isn't the Son of God. These are two drastically different things. Just ask a Jew: they don't think the Messiah will be the son of God. That's a uniquely Christian belief.

    --
    In Repressive Burma, it's not just your connection that dies. slashdot.org/comments.pl?sid=314547&cid=20819199
  110. classic case of ignorance by Nocturnal+Deviant · · Score: 1

    at least and i mean at LEAST 200,000 of those are now being used on different networks because they were unlocked, you don't have to activate them, this is at&t wondering why people aren't using its network

    --
    -Noc