Apple Confident in All-Time Record iPhone Sales for Holiday Quarter

MacRumors · Oct 18, 2011, 04:36 PM

While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S.

Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend.

iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S.

Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year.

Article Link: Apple Blames Rumors for iPhone Sales Drop, Confident in Record Sales for Holiday Quarter

deputy_doofy · Oct 18, 2011, 04:40 PM

Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid.

lilo777 · Oct 18, 2011, 04:45 PM

Quote:

Originally Posted by deputy_doofy

Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid.

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

cvaldes · Oct 18, 2011, 04:46 PM

To keep things in perspective - Apple's gross margins on its handset sales are a lot higher than those of Samsung's. And I mean a lot higher.

Apple eats up most of the industry's profits in all the hardware categories they compete in (PCs, tablets, MP3 players, smartphones). If I recall correctly, Apple has about two-thirds of the smartphone industry's profits.

marksman · Oct 18, 2011, 04:46 PM

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3)

Top three smartphones of 2011: 4, 4s, 3GS

hobo.hopkins · Oct 18, 2011, 04:47 PM

Quote:

Originally Posted by lilo777

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

How many iPhones are there? How many Samsung smartphones are there? That's not a fair comparison, and doesn't help to put anything into perspective.

Here's a link to help you.

applefan289 · Oct 18, 2011, 04:47 PM

Quote:

Originally Posted by lilo777

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

I still can't understand why, for a similar monthly fee, people don't go for the iPhone. It's obviously more quality. I know that is an opinion, but it is a fact in a way. I mean, just holding the iPhone feels great.

MultiMediaWill · Oct 18, 2011, 04:48 PM

Apple blames rumors... I blame lack of redesign.

iMikeT · 04:54 PM

Considering that 4 million iPhone 4S's were sold in the first 3 days alone along with the holidays coming, I would be confident too if I were Apple.

patsfan83 · Oct 18, 2011, 04:52 PM

Quote:

Originally Posted by hobo.hopkins

How many iPhones are there? How many Samsung smartphones are there? That's not a fair comparison, and doesn't help to put anything into perspective.

Here's a link to help you.

128 models...talk about fragmentation.

Frankied22 · Oct 18, 2011, 04:52 PM

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3)

Maybe if they didn't keep releases top secret until the day of release there wouldn't be so many absurd rumors gaining ground leading up to the launch, raising everyone's expectations to unrealistic heights. Also, those unrealistic rumors wouldn't leak into the mainstream news and gain even more ground. It's just a thought...

iMikeT · Oct 18, 2011, 04:52 PM

Quote:

Originally Posted by deputy_doofy

Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid.

I wouldn't blame investors, I would blame bonehead analysts.

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

If you're looking for a huge redesign in a product every time a new revision, even a minor one is released, it tells me that you must be the kind of person who gets easily distracted by shiny objects.

I dare you to try to come up with a new design for a product every time a new revision is released.

By the way, 4 million iPhone 4S's were sold in its first 3 days of sale, beating previous iPhone releases. It has the same design that the original iPhone 4 has.

Glideslope · Oct 18, 2011, 04:53 PM

Quote:

Originally Posted by lilo777

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

LOL, not at 40.3% Margins.

glenncal · Oct 18, 2011, 04:53 PM

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

This is for before the 4S was released.

Glideslope · Oct 18, 2011, 04:53 PM

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

I blame you.

applefan289 · Oct 18, 2011, 04:53 PM

Quote:

Originally Posted by patsfan83

128 models...talk about fragmentation.

Having 128 models is truly ridiculous. It shows that they're just trying to flood the market so they can take over more by numbers. It's almost cheating.

addicted44 · Oct 18, 2011, 04:54 PM

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

Well, you are an idiot then, since the sales drop was before the 4S was revealed...

Moyank24 · Oct 18, 2011, 04:54 PM

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

It doesn't seem like the lack of redesign had much effect...4 million sold in the first weekend. After all of the yapping after the keynote, it doesn't seem like there was any effect on sales.

GorgonPhone · Oct 18, 2011, 04:56 PM

i dont care about apple until they announce larger screen..

addicted44 · Oct 18, 2011, 04:57 PM

Quote:

Originally Posted by iMikeT

I wouldn't blame investors, I would blame bonehead analysts.

The problem for Apple was clearly the delay.

1) Analysts were modelling sales based on an increase from the yoy quarter, however, last year, this was the first quarter after launch of a new iPhone, while this year, it was the last quarter before the launch of the new iPhone.
2) Apple had established a clear pattern of releasing a new iPhone in the Sep quarter. As a result, even those who did not follow rumor sites, were expecting the iPhone in the last quarter, and delaying purchases.

thenerdal · Oct 18, 2011, 04:58 PM

Quote:

Originally Posted by applefan289

Having 128 models is truly ridiculous. It shows that they're just trying to flood the market so they can take over more by numbers. It's almost cheating.

It just gives the consumer different options....

Astro7x · Oct 18, 2011, 04:58 PM

Quote:

Originally Posted by applefan289

Having 128 models is truly ridiculous. It shows that they're just trying to flood the market so they can take over more by numbers. It's almost cheating.

One of the things that Apple does right is they have very few models, and when they release a new product they make you feel like your old model is out of date. I can tell you the difference between every single iPhone model out there, because there has only been 5 of them.

Meanwhile I couldn't tell you the difference between the Galaxy S and the Infuse, or the Epic. And when they come out with a the Galaxy Ultimate or whatever, I don't feel like I need to upgrade because it only looks different and it feels like a cosmetic upgrade rather than a performance upgrade.

*LTD* · 05:05 PM

Quote:

Originally Posted by lilo777

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

How many?

Samsung sells 23 smartphone models.

slapppy · Oct 18, 2011, 04:59 PM

Quote:

Originally Posted by lilo777

To keep things in perspective - Samsung did sell more smart phones than Apple in this quarter.

Hmmm thats a good point. Samsung is starting to look like they are pulling ahead of Apple. Slavishly copying Apple, along with Android is paying off for them.

FourCandles · Oct 18, 2011, 05:00 PM

Quote:

Originally Posted by MultiMediaWill

Apple blames rumors... I blame lack of redesign.

Quote:

Originally Posted by Glideslope

I blame you.

I blame Arn....it's his rumor site.

Oct 18, 2011, 04:36 PM	#1
MacRumors macrumors bot Join Date: Apr 2001	Apple Blames Rumors for iPhone Sales Drop, Confident in Record Sales for Holiday Quarter While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S. Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend. iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S. Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year. Article Link: Apple Blames Rumors for iPhone Sales Drop, Confident in Record Sales for Holiday Quarter
	0

Oct 18, 2011, 04:40 PM	#2
deputy_doofy macrumors 65816 Join Date: Sep 2002	Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid. __________________ * 15" (Hi-Res Glossy) MBP /2.66GHz Core i7/8GB RAM/500GB 7200 RPM) * 15" (Glossy) MacBook Pro/2.33GHz C2D/2GB RAM/160GB 5400RPM/6x DL SuperDrive
	11

Oct 18, 2011, 04:46 PM	#5
marksman macrumors 603 Join Date: Jun 2007	Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3) Top three smartphones of 2011: 4, 4s, 3GS __________________ MacRumors Analyst
	3

Oct 18, 2011, 04:48 PM	#8
MultiMediaWill macrumors 65816 Join Date: Aug 2010 Location: Illinois	Apple blames rumors... I blame lack of redesign. __________________ Click here for the iPhone 5 iOS 6.0 Jailbreak! MacBook Pro 15" 2011 , 2.2 GHz Quad i7, 750GB HDD, 8GB RAM, Anti-Glare iPhone 5 32gb iPad 3 16gb
	-19

Oct 18, 2011, 04:48 PM	#9
iMikeT macrumors 68020 Join Date: Jul 2006 Location: California	Considering that 4 million iPhone 4S's were sold in the first 3 days alone along with the holidays coming, I would be confident too if I were Apple. Last edited by iMikeT; Oct 18, 2011 at 04:54 PM.
	0

Oct 18, 2011, 04:46 PM	#4
cvaldes macrumors 68040 Join Date: Dec 2006 Location: somewhere else	To keep things in perspective - Apple's gross margins on its handset sales are a lot higher than those of Samsung's. And I mean a lot higher. Apple eats up most of the industry's profits in all the hardware categories they compete in (PCs, tablets, MP3 players, smartphones). If I recall correctly, Apple has about two-thirds of the smartphone industry's profits.
	1

Oct 18, 2011, 04:52 PM	#11
Frankied22 macrumors 6502a Join Date: Nov 2010	Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3) Maybe if they didn't keep releases top secret until the day of release there wouldn't be so many absurd rumors gaining ground leading up to the launch, raising everyone's expectations to unrealistic heights. Also, those unrealistic rumors wouldn't leak into the mainstream news and gain even more ground. It's just a thought... __________________ iPhone 5 64GB White Unlocked 2012 13" MBA i7/8/256 Nexus 4 16GB
	-1

Oct 18, 2011, 04:56 PM	#19
GorgonPhone macrumors 6502a Join Date: Dec 2010	i dont care about apple until they announce larger screen.. __________________  2009 21" iMac  2011 MacBook Pro 13" i5 +  2006 21" HD Cinema Display  iPhone4S 16Gig  iPhone5 16Gig  iPad3 16Gig
	-10

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