Apple Sells Nine Million iPhones Over Weekend
Nerval's Lobster writes "Apple managed to sell nine million iPhones over the weekend, with the company claiming its initial supply of high-end iPhone 5S units completely sold out. Apple didn't sell out of the new iPhone 5C, its plastic-cased (and cheaper) alternative to the iPhone 5S; models are still available for shipment within 24 hours from Apple's online store. And the iPhone 5S selling out is no surprise: in the weeks ahead of the new iPhones' launch, rumors persisted that the initial production run of the device was relatively small in scope, which would make it far easier for Apple to sell out of its first batch. But how many iPhone 5C units did Apple actually manage to sell? In August, KGI Securities analyst Ming-Chi Kuo suggested that Apple would produce just over 5 million iPhone 5S units ahead of the device's launch weekend; if that number's accurate, and Apple sold every single one, it would mean Apple sold roughly 4 million iPhone 5C units in order to reach that 9-million-sold figure for both models. That's an impressive figure for any smartphone, of course, and it could quiet some of the naysayers who have spent the past several months suggesting that Apple's best years are behind it."
So if selling 9 million high-end smartphones, according to the pundits, is "jumping the shark", I wonder what success looks like?
Apple's been dying for over 30 years.
iPhone 5s "T-Moble Contract Free" prices, are $649, $749, and $849, depending on the amount of storage. See iPhone 5s. The iPhone 5C prices are $549, $649. See iPhone 5c.
Using an average price of $649, and 9 million units sold, that's $5.84 billion in revenue. That doesn't could any accessories (cases, car chargers, etc) or Apple Care sales.
GTA V made a relatively puny $1 billion. You know, chump change.
When Steve Jobs got up there and announced the first iPhone, he stated that Apple had relatively modest goals. Of the 1 billion cellphones in the world, Apple hoped to get the iPhone to represent just 1% - or ten million units. They completely blew that goal out of the water. Now they can hit that mark in a single product launch weekend.
People forget when Microsoft injected cash in Apple when it was going nowhere.
Mightier companies than Apple have fallen, and unfortunately for them it begins to look like they are living from a "perception marketing bubble".
Remember Nokia? It was washing the floor with the competition. Apple did very well to change some of the paradigms of the mobile phone platform, but they have contributed very little and the release of "cheaper" iPhones recognizes that the only differentiator now is in price not in features.
And that is the problem for Apple: to keep charging for a phone that does pretty much the same as any other you have to resort to gimmicks: selling golden phones for example, in technology that can take you only so far.
Proof: people wanted a phone just because it was golden. That is not innovation, is hype, sooner or later the bubble will burst and all the chickens will come home to roost.
IANAL but write like a drunk one.
I have to post anon because I work for AT&T. As normal this time of year all employees are on red alert, no new vacations can be scheduled because of the iphone release, and many of use have to go on mandatory overtime. Apple, realizing it was an incremental update, laid down some new rules for us. Many of our call centers could not sell it, and we had to force the majority of users that normally called into to order it, to use our website. Oddly enough our response to the new Iphone was less than stellar as it had been in previous years, and we saw very few customers seeing it as a must have device. And we were shipped absurdly small amounts of units so we could sell out quickly. You can still get them in places like Best Buy, Radio Shack and Walmart. Plus 99.9 percent bought the phone at a subsidized price.
That's good enough for me
Declared dead 63 times since April 1995
It's funny because the early quotes don't sound that much different than the recent ones:
1995
Unless somebody pulls a rabbit out of a hat, companies tend to have long glide slopes because of the installed bases. But Apple is just gliding down this slope and they're loosing market share every year. Things start to spiral down once you get under a certain threshold. And when developers no longer write applications for your computer, that's when it really starts to fall apart.
1996
These facts were summed up by Stan Dolberg of Forrester Research who said, "whether they stand alone or are acquired, Apple as we know it, is cooked." [Article found through David Pogue's column "The Desktop Critic: Reality Check 2000" in Macworld Magazine, where the quote still resides.]
One day Apple was a major technology company with assets to make any self-respecting techno-conglomerate salivate. The next day Apple was a chaotic mess without a strategic vision and certainly no future.
1997
I'm a Mac lover, but last year I switched over completely to Windoze because Apple couldn't build a reasonable laptop. I really want it to succeed, but I think the company's finished. Software vendors aren't turning out enough code to keep the Mac as a really good platform, even for family and school stuff. This whole NeXT decision seems to be a waste of time. It should have been sold to HP for $35 per share a year and a half ago.
2000
Steve Jobs can't run companies, but he has proven that he is a genius at motivating teams of people to produce extraordinary products. In fact, he may be the greatest project team leader in the history of high tech. That is no small achievement. But it does not translate to being the CEO of a giant corporation. Jobs failed the first time running Apple, failed at Next and only succeeded at Pixar because the company worked around him. He succeeded in the short term during this, his second, Apple tenure because he ran the whole company as a product team. That only works so long. Why is he a poor CEO? Because he's mercurial, insufficiently engaged by the more boring (but crucial) operations like distribution and, ultimately, because he's a pretty nasty piece of work. In the best of all scenarios, Jobs would hire a competent CEO and focus on product development, but his ego would soon lead him to undermine his replacement. Steve Jobs is Apple's Alcibiades: the company can't live without him, or with him.
Investors may be asking themselves what Apple can do to revive its fortunes. The likely answer, unfortunately, is that Steve Jobs has no white rabbits left in his hat. Apple appears to be facing a dead end in its business growth, the victim of mismanagement and unmitigated hubris. Apple lovers are a loyal bunch, and they'll probably stick with the company. But Jobs's dream of becoming the world's biggest computer-maker will likely remain just that -- a dream.