Apple Sold 270,000 iPhones in First 30 Hours

[shawnce]

what's the p/e for the quarter just ended, given the exceptional results?

P/E changes with the stock price so it is best to just wait until various stock sites update their EPS (ttm) values to include the Q3 results. They should update very soon.

With that said and without attempting to do any math (or looking up Q3 06 numbers, etc.) I bet the trailing P/E is under 40 but above 35 at the moment if you include Q3 results.

 

[slughead]

According to the iPhone Buyer Statistics, which was posted on front page MR (https://www.macrumors.com/2007/07/13/iphone-buyer-statistics-o2-confirmed-for-uk/)


So iPhone is venturing into a market that Apple hasn't ever before, getting new customers that have never considered Apple before, and furthering the Apple brand. To me, that's a success.

I stand corrected. Only 60% of iPhone customers are iPod buyers (which means iPhones will invariably tap into iPod sales)

It looks like the analysts agree with me (like I said in a previous thread) that iPhone sales aren't going to be a major cash-cow for Apple (in the short term, I'm guessing).

Mac sales seem to be the real hero here, looking at the data. I strongly disagree with the notion that the iPhone (and diversion of some of the OS X team to work on iPhone) is somehow going to be beneficial to the mac. To me, doing two things at once doesn't mean they both end up better than one at a time. Leopard was postponed due to this; that's a fact. To me, that means Apple's hurting mac to help iPhone development (even if only temporarily). Apparently, I'm alone on this.

 

[teflon]

Mac sales seem to be the real hero here, looking at the data. I strongly disagree with the notion that the iPhone (and diversion of some of the OS X team to work on iPhone) is somehow going to be beneficial to the mac. To me, doing two things at once doesn't mean they both end up better than one at a time. Leopard was postponed due to this; that's a fact. To me, that means Apple's hurting mac to help iPhone development (even if only temporarily). Apparently, I'm alone on this.

iPhone is a great advertisement for Apple and it gets more people to know the brand name. 30% iPhone buyers are first time Apple customers, and they may have never touched an Apple product if it weren't for iPhone. Now, these people will have a small taste of OSX and the overall great design and simplicity of an Apple product. They might then consider getting other Apple products such as Mac, Apple TV etc. A survey showed that 20% of iPod owners will get a Mac as their next computer. iPhone may have the same effect in switching people over. Also, the profit from iPhone, however small you might think it will be, still benefits Apple. It can go to the R&D of Mac if needed. All around, I think it's a good thing that Apple has more than one thing going for it.
Also, its normal that products will tap into each other's sales. Mac mini taps into iMac's sale, iMac (especially the 24'') taps into MP's sale, mb taps into mbp's sale. iPhone may tap into some of iPod's sales, but its also getting Apple sales that it otherwise wouldn't have gotten. To Apple, there's no difference between the profit from iPhone or profit from iPod. Its all profit for them. However, the profit that Nokia gets from the cell phone market isn't. Diversifying their interests allows them to reach out to more customers, thus getting more profit and users in the end.
Edit: Mac has been on sale for the last 30 years, iPhone has been on sale for the last 30 days. Of course Macs have a larger, more established market than iPhone right now. Plus, there's only 30 hours of revenue coming from iPhone, as oppose to 3 months for Macs.

 

[megfilmworks]

I would think that a large percentage of new Apple customers who have entered via the iPhone will be getting a Mac, if not a few Macs. How could you resist if you love the iPhone?

 

[MacFly123]

???

If I give you two very good reasons why that image is obviously fake, will you do me the favor of no longer posting it to every thread you can justify? I've seen you post it to more than one thread, and each time it strikes me as a fake. Either you're trying to dupe us here on this site or someone is duping you. The latter is only marginally more justifiable than the former, btw.

I've done professional graphic design work and there's this concept in design concerning padding of an image. It's not really something I've seen taught, but rather something you get a good sense of the more you do design work. For example, if you have a logo or image in a box, an experienced graphic designer knows how to float the logo in the box so there's just the right amount of padding around the logo, between it and the box. Not too much, not too little. A designer with a good eye can get it so it floats there, just right, looks right and feels right. It's hard to explain, but it's one of those esoteric design things that separates the amateurs from the pros. You know it when you see it.

Look at the buttons (except the Finder button) on the iPhone. Those images float just right in their button frames. A skilled and experienced pro did those. Now look at the Finder button. That's clunky. It's just... not right. The top lines bump the edges and the sides don't. The eyes are too close to the edges. It's just off. Someone else with considerably less design skills did that button.

The other reason I'm sure this is fake is that companies are extraordinarily protective of their branding and logos. Bigger companies frequently produce and distribute design bibles to their marketing people. This bible defines right down to the very last pixel, how any logo or branding element is allowed to be used in any medium, the colors, the background, the surrounding elements, etc. This is done to present and maintain a consistent look and it's a very good idea.

There is no way in hell Apple is going to present one of their most famous branding elements (the Mac Finder face) cropped and anamorphically squeezed like that. It's awful. It's laughable. That's not a button designed by Apple.

Now, before you counter with the possibility that this button design is a prototype, please consider that the rest of the image looks like a polished marketing image--clean and clear and good color and very attractive. If it were real, it would stand to reason that it would be a final marketing image which would mean that no traces of early work or prototype button designs would be a part of it.

So, it's fake. Sorry. Whoever this friend is who claims to work for Apple and has passed this along to you is pulling a fast one on you.

Well I can understand your comment, but i hope you are wrong. It is a pretty good friend, and I just get excited about these things. I have only been waiting for MMS to be added before i buy my iPhone and all the rest is a bonus to me. Even if it is fake, I think you can agree that the features I stated are very likely to be added anyway!

 

[JeffDM]

while an exageration he does have a point. $500-$600 is WELL outside the spending range for most average people. If this was a laptop sure. Buts its a damn phone at the end of the day.

Hopefully the current price is just a starting point before being lowered later. The original iPod started out pretty high too but it dropped over time as well as adding functionality. I think the 60GB photo started out at $600 but the same model eventually settled down to $400 before getting replaced. I don't think the iPhone will go down that quickly, but this is an example.

something isn't jiving here. could AAPL be lowballing this? maybe they booked advertising or some R&D against the iphone profits? $18/phone just doesn't seem to match up to anything.

Maybe part of the revenue is prorated because it's only two days out of the entire quarter?

1) Apple expects an upside in iPhone sales, and needs extensive cash on hand to buy bulk (and therefore more affordable) purchases of flash memory. While that wouldn't account for 11 billion obviously, that would be a *reason* for having cash on hand--for future purchases.

They make quite a bit of money on the money they have too. It's not just cash that is sitting around, it is invested.

On the call, they stated "It took us two years to sell a million iPods, we're hoping to sell a million iPhones in one quarter."

So, TWO years to sell a million iPods versus 1 year to sell a million Zunes. Fear not for I am not about to tell you how much better the Zune is. Read on...

One might argue that the difference in market size is a major factor. The entire market for digital file players at the time was very small. That might make iPhone look bad because the "pond" was considerably larger to start with.

I love Apple, but lets not crow over statistics that are clearly not comparable.

Agreed. Microsoft was only selling one model in one country. I don't know why they haven't expanded their selling region or added models yet. Taking 10% of the US HDD player market at one stab isn't bad, but I think maybe that shows just how small of the HDD player market really was.

 

[JeffDM]

Well I can understand your comment, but i hope you are wrong. It is a pretty good friend, and I just get excited about these things. I have only been waiting for MMS to be added before i buy my iPhone and all the rest is a bonus to me. Even if it is fake, I think you can agree that the features I stated are very likely to be added anyway!

I do agree with the other person on the fakeness. The picture doesn't work, I agree that the margins are too tight. I suppose there is a chance that it could be real, but I think that means that the image is just a placeholder.

I'm not sure if there is enough room on the device to make a Finder worthwhile, the apps don't need it. So far, each app seems to manage all the files relevant to itself, somewhat like the way Palm does it, or at least it looks that way.

 

[Black Belt]

I would think that a large percentage of new Apple customers who have entered via the iPhone will be getting a Mac, if not a few Macs. How could you resist if you love the iPhone?

Well, it's easy to "resist". I love the iPod, always have, and that never convinced me to go back to Mac. I have been happy with the current direction of Mac OS, it's better than when I dumped the Mac, and I would consider running it in a virtual machine, but buying a Mac? Nah. I make better machines with better components that look better for less money that frankly work better for the myriad of projects I do. Why would I give that up?

 

[megfilmworks]

Well, it's easy to "resist". I love the iPod, always have, and that never convinced me to go back to Mac. I have been happy with the current direction of Mac OS, it's better than when I dumped the Mac, and I would consider running it in a virtual machine, but buying a Mac? Nah. I make better machines with better components that look better for less money that frankly work better for the myriad of projects I do. Why would I give that up?

I understand, but you are not the target demo. The target is people who want the best, ready to go, not build their own. You can always build a better mousetrap, but you have to have a market if you want to make any profit.

 

[Fairly]

But the media are trying to make this look like bad sales statistics.

 

[Fairly]

That's 2.5 per second only if the stores never closed and no one went to sleep.

 

[ABM]

But the media are trying to make this look like bad sales statistics.

Just because of the big hype after June 29th! :-D

 

[hardmanb]

"Originally Posted by SiliconAddict
while an exageration he does have a point. $500-$600 is WELL outside the spending range for most average people. If this was a laptop sure. Buts its a damn phone at the end of the day."

If you think $500-600 is outside the spending range of most people, you may be right...but obviously, you probably don't have a teenage daughter or a college student, or a young professional child. Who do you think bought 100 MILLION iPods?

"It's a damn phone at the end of the day"....WTF?
It's the most usable, pleasurable, mobile device with the first "real" browser, Wifi, PDA features, iPod, video device...according to reviews and surveys of those who have them. The "sideloading" of iTunes, means that you no longer have to pay a carrier for music, ringtones, video and other downloads.

Don't forget that the iPhone is a computer and is upgradable by software. Unlike MS with their "promised" upgrades and service packs, Apple constantly improves their operating system with security fixes and added features. Over the next year there will be a steady stream of improvements, added features and third pary offering of software to erase "missing capabilities".

Hint: It's not just "a damn phone at the end of the day".

 

[JeffDM]

If you think $500-600 is outside the spending range of most people, you may be right...but obviously, you probably don't have a teenage daughter or a college student, or a young professional child. Who do you think bought 100 MILLION iPods?

Those two things aren't necessarily connected. The original iPod was reasonably popular, but iPods didn't really take off until Apple made their mini/nano class, and Apple's CEO admitted that the mini & nano were Apple's best selling products, not the bigger, pricier models.

I also don't think it's a matter of that much money being outside the spending range of most people, it can still be judged to be too expensive to be worth spending it on the device rather than on some other luxury that's not a phone. Much of your argument seems to assume that masses of people want PDA and other capabilities, and that hasn't been borne out yet.

 

[hardmanb]

iPhone contributing to Mac sales?

Mac sales seem to be the real hero here, looking at the data. I strongly disagree with the notion that the iPhone (and diversion of some of the OS X team to work on iPhone) is somehow going to be beneficial to the mac. To me, doing two things at once doesn't mean they both end up better than one at a time.

Another thing that Apple is doing "at the same time" is the Apple Stores, a major success story in their own right. The Apple stores produce the highest per-square-foot revenue (and profit) of any electronics story chain in history.

If you haven't visited an Apple store, you should. Just stand back and watch the kids, the young and the old come in to look at the iPhone, and play with the entire line on display. Look at the interest, surprise and wonder in their eyes and listen to their questions and comments. The iPhone store traffic is successfully exposing many to actual presence and hands-on tinkering with Apple products. Reports show that some come to see the iPhone, and leave with an iPod, a laptop, an iMac...or the intention to buy Apple on their next purchase.

Survey after survey of prospects and purchasers of Apple products have shown that iPods, iPhones and the Apple stores have resulted in increased purchases of Macs and intentions to purchase Macs in the future. There is a definite and industry-envied crossover or "halo" effect.

And not only is Apple still steadily opening Apple stores, but in time for Christmas, they are opening over a thousand stores-within-stores at BestBuy across the nation. Game on.