Orange Sells 70,000 iPhones in First Month

[Manic Mouse]

Yeah...and I remember how we European Macrumor users were bashed for telling everybody that it is not the Jesus phone and that it won't sell in Europe without 3G and MMS!

Forget about 3G and MMS, it wont sell until it's on a decent contract. So the UK and French launches have been average at best, how was the German one?

Here's the problem with the iPhone:

My O2 contract: £19, 150 mins, 500 messages, free phone every year
My friend's O2 contract: £30, 400 mins, 1,000 messages, free phone 18 monthly
iPhone contract: £35, 200 mins, 200 messages, unlimited internet, add £279 for phone (soon to be obsolete)

I hope Apple's happy with the blood-money it's getting from those crappy contracts.

 

[eastcoastsurfer]

Forget about 3G and MMS, it wont sell until it's on a decent contract. So the UK and French launches have been average at best, how was the German one?

Here's the problem with the iPhone:

My O2 contract: £19, 150 mins, 500 messages, free phone every year
My friend's O2 contract: £30, 400 mins, 1,000 messages, free phone 18 monthly
iPhone contract: £35, 200 mins, 200 messages, unlimited internet, add £279 for phone (soon to be obsolete)

I hope Apple's happy with the blood-money it's getting from those crappy contracts.

Exactly! iphones will not get decent contracts because Apple wants to milk the providers and thus the consumers. The iphone isn't worth it's original price + the money you pay to Apple each month through your provider. I would even argue it's not worth it's original price, but that's for another thread.

I wonder if we'll look back at the iphone in 5 years and wonder if it marks when the smugness and arrogance of Apple started the companies downfall. As a company they have let almost all of their other products lag behind because of the iphone. Was that a good business strategy? Only time will tell.

 

[Manic Mouse]

Apple wants to milk the providers and thus the consumers.

And how many cows willing to be milked do you think there are in Europe? If the iPhone can't sell well when it's a brand new product riding a year of hype how well will it do over the next year, once the hype is gone and the hardcore have bought theirs?

According to Ars Orange originally said they wanted to sell 100,000 (presumably a realistic number). This 50,000 number seems to be a little damage control, to cover up that they didn't meet their sales targets:

70,000 sounds like a nice, solid number at first. However, just two days before the iPhone's release in France, France Telecom CEO, Didier Lombard said that the company hoped to sell a solid 100,000 iPhones before the end of the year. That would mean that the company was about 30,000 short, for you math geniuses in the audience. It looks as if Orange is a little embarrassed by not being able to meet its own goal for 2007 and has ever-so-slightly padded its original goal to make it look like less of a flop.

 

[takao]

ah the joy of remembering the one thread which stated 1 million iphones sold in europe until 15th january

image they had launch outside of christmas during the summer ... that would have been ugly

 

[CrackedButter]

Exactly! iphones will not get decent contracts because Apple wants to milk the providers and thus the consumers. The iphone isn't worth it's original price + the money you pay to Apple each month through your provider. I would even argue it's not worth it's original price, but that's for another thread.

I wonder if we'll look back at the iphone in 5 years and wonder if it marks when the smugness and arrogance of Apple started the companies downfall. As a company they have let almost all of their other products lag behind because of the iphone. Was that a good business strategy? Only time will tell.

I wouldn't say Apple's other products have lagged, just remember a lot of people expect a lot from Apple, but one thing Apple can be criticised for is the price drop on the iPhone. The price drop itself isn't a bad thing its just that why don't they do it for their Mac line up if they are concerned about gaining market share?

Jobs stated he wanted to get the iPhone into as many hands as possible when he announced the price drop, why not the same with the Apple computers? Especially the Mac mini. Instead the price of the mini went up and to buy a black MacBook it costs extra over a white one!

 

[Manic Mouse]

I wouldn't say Apple's other products have lagged, just remember a lot of people expect a lot from Apple, but one thing Apple can be criticised for is the price drop on the iPhone. The price drop itself isn't a bad thing its just that why don't they do it for their Mac line up if they are concerned about gaining market share?

Jobs stated he wanted to get the iPhone into as many hands as possible when he announced the price drop, why not the same with the Apple computers? Especially the Mac mini. Instead the price of the mini went up and to buy a black MacBook it costs extra over a white one!

Because Apple make 30% profit on Macs. They make about 300% profit on the iPhone, when you factor in the constant stream of money from the service provider over an 18 month contract.

They can easily afford to cut the price on the iPhone if it isn't selling well.

The iPhone as a product hasn't lagged behind, in fact it's probably one of Apple's best ever produced. Especially considering it's a first gen product. Apple's attitude, however, leaves a lot to be desired as they're using it to gouge customers for as much as they can possibly get away with.

Had MS or any other company pulled what Apple have with the iPhone and it's contracts everyone on here would be baying for blood.

 

[SheriffParker]

Well when they release the 3G iPhone, they will sell 70,000 more.... to all the people who bought the first one and want to upgrade.

 

[eastcoastsurfer]

I wouldn't say Apple's other products have lagged, just remember a lot of people expect a lot from Apple,

Apple has said themselves that the iphone caused their other products to lag...namely Leopard. Doesn't take much to figure out if the iphone can cause their flagship OS to lag that it definitely put a burden on their other products as well.

 

[Bonte]

I wonder when the first apologists will arrive to give this a positive spin (like 70,000 phones sold means more than 0.2 % of the whole French population own one. What a market penetration.

Let me be the first
If i remember correctly, Apple sold about 1 million iPhones the first month of sales, that is 0,33 % market penetration. Take into account the hacked phones that leave the VS and the french figures don's look so bad.

 

[Matti]

They can easily afford to cut the price on the iPhone if it isn't selling well.

price cut might be coming.

From: http://mobiletoday.co.uk/iPhone_sales_a_Christmas_flop.html

O2 enjoyed a major spike in iPhone sales in the week before Christmas, after disappointing sales from the much-hyped 9 November launch.

Most stores are believed to have missed iPhone targets by some distance, with a typical-sized O2 store selling just one iPhone per week. However, that appeared to change in the final seven days, with O2 staff reporting a big upturn, with many stores selling one per day, and even more in large city centre stores.

One O2 source said: ‘It seemed like people started buying them even if they were already in a contract, especially as they realised they wouldn’t start being billed until they registered online.’

O2 staff said that despite the moderate interest there was a much lower percentage of returns on the iPhone than had been anticipated.

Carphone staff were less bullish on iPhone sales, reporting plenty of interest in the device, but with a very low rate converting into sales, with the price tag being the main stumbling block.

One Carphone staffer said: ‘The iPhone was poor. We work in one of the bigger stores in our area and only sold one or two over the Christmas period. Our target last week was to sell 36 and we only sold one.’

A price cut is rumoured to be taking place in the coming months to bring the cost of the iPhone down from £270, or an improvement in the tariff to give more value than the 600 minutes and 500 texts for £45 currently offered.

 

[thegman1234]

thats horrible....they should of done much better...they likely sold more unlocked iPhones to canadians!

first comment yeah

Haha. Btw I like your position as "Best Buy Apple Specialist." The geek squad at my best buy knows nothing at ALL about Macs.

It's nice to see that the iPhone is succeeding internationally. This is a very good thing.

 

[Manic Mouse]

price cut might be coming.

From: http://mobiletoday.co.uk/iPhone_sales_a_Christmas_flop.html

O2 enjoyed a major spike in iPhone sales in the week before Christmas, after disappointing sales from the much-hyped 9 November launch.

Most stores are believed to have missed iPhone targets by some distance, with a typical-sized O2 store selling just one iPhone per week. However, that appeared to change in the final seven days, with O2 staff reporting a big upturn, with many stores selling one per day, and even more in large city centre stores.

One O2 source said: ‘It seemed like people started buying them even if they were already in a contract, especially as they realised they wouldn’t start being billed until they registered online.’

O2 staff said that despite the moderate interest there was a much lower percentage of returns on the iPhone than had been anticipated.

Carphone staff were less bullish on iPhone sales, reporting plenty of interest in the device, but with a very low rate converting into sales, with the price tag being the main stumbling block.

One Carphone staffer said: ‘The iPhone was poor. We work in one of the bigger stores in our area and only sold one or two over the Christmas period. Our target last week was to sell 36 and we only sold one.’

A price cut is rumoured to be taking place in the coming months to bring the cost of the iPhone down from £270, or an improvement in the tariff to give more value than the 600 minutes and 500 texts for £45 currently offered.

My friend works in Carphone Warehouse and she tells me the same story. There's huge interest in the iPhone but they've hardly sold any at her store.

The iPhone contracts need gutted, pure and simple. They're a joke.

 

[TheChillPill]

I think sales will see something of an upturn when the prepay (PAYG) version launches later this quarter (in the UK at least). If they keep the phone price as it is (or lower), I think people will go for it. Moreso if it coincides with iPhone 2 with 3G.

 

[aristobrat]

Here's the problem with the iPhone:

My O2 contract: £19, 150 mins, 500 messages, free phone every year
My friend's O2 contract: £30, 400 mins, 1,000 messages, free phone 18 monthly
iPhone contract: £35, 200 mins, 200 messages, unlimited internet, add £279 for phone (soon to be obsolete)

Wonder why AT&T is able to offer decent iPhone plans when none of the European carriers seem to be able?

 

[Glenny2lappies]

Seems like iPhone sales in the UK weren't great either - if they are going to get to their target it will be based on US sales

http://mobiletoday.co.uk/iPhone_sales_a_Christmas_flop.html

From that URL: "Most stores are believed to have missed iPhone targets by some distance, with a typical-sized O2 store selling just one iPhone per week."

That's excellent news; it restores my faith in the British public. The iPhone plan is outrageously expensive and is designed to completely screw the customer. I despise the way the plan doesn't roll over unused time, that's without considering the paltry monthly allowance (plus overpriced per-minute and data roaming costs, and lousy EDGE coverage -- 30% of the UK compared with 99% GSM coverage).

I've a feeling that most people are waiting for the iPhone to 'get better' with the SDK and upcoming 3G version this summer.

Hey, wouldn't it be brilliant if the 3G version's launched next week. Mind you, there's absolutely no chance of that happening as it would completely upset all the early adopters I do reckon that Steve will mention this next week though.

 

[CrackedButter]

Because Apple make 30% profit on Macs. They make about 300% profit on the iPhone, when you factor in the constant stream of money from the service provider over an 18 month contract.

They can easily afford to cut the price on the iPhone if it isn't selling well.

You talk as though Apple don't make any further profit from an Apple mac after the initial purchase. There are things like Applecare, software, upgrades and accessories.

Your "300%" needs backing up if I'm to take your point seriously. I understand what you're trying to say but you're just throwing numbers at me, nobody knows how much they take from each contract over the 18 months.

Apple has said themselves that the iphone caused their other products to lag...namely Leopard. Doesn't take much to figure out if the iphone can cause their flagship OS to lag that it definitely put a burden on their other products as well.

I think we need to define lag here. You're talking about Leopard being delayed as the "lag" while I got the impression from the other poster that the quality of the product "lagged". I'm under the impression that the quality of the product didn't lag.

If there was a burden placed on other products, we certainly wouldn't know about them either.

 

[mrrory]

Just can't compare the two

Hey, my original post disappeared. Interesting moderating decision.

 

[Manic Mouse]

You talk as though Apple don't make any further profit from an Apple mac after the initial purchase. There are things like Applecare, software, upgrades and accessories.

That aren't guaranteed income. Apple aren't going to offer Macs at cost price or less on the off-chance that you'll buy enough accessories and software to make it worth their while. Computers aren't videogame consoles, which are useless unless you buy games. And even if that were the case then they wouldn't bundle software like iLife (which you should factor into your price).

Macs are expensive, don't get me wrong, but the iPhone is in a whole other league.

Your "300%" needs backing up if I'm to take your point seriously. I understand what you're trying to say but you're just throwing numbers at me, nobody knows how much they take from each contract over the 18 months.

When the iPhone was released it was estimated that it cost Apple around $250(£125) to make. It'll cost them even less now. They sell them for £279 and then make money over 18 months from the O2 contract. And given the ludicrous price of that contract I would say they're getting quite a bit (some rumours say as much as 40%).

You do the math. Bottom line is that they're making back many times over what each iPhone costs to make.

 

[weg]

Oh ya, almost $8 a gallon for gas too...
How's socialism going for ya?

How's the war for cheap oil going for ya?

 

[thegman1234]

Wonder why AT&T is able to offer decent iPhone plans when none of the European carriers seem to be able?

My family iPhone plan is great. $90 for a third line, 700 shared anytime minutes, unlimited weekend and night minutes, and 200 texts to share. More texts would be nice though. But other than that it's a great plan.

 

[Glenny2lappies]

Wonder why AT&T is able to offer decent iPhone plans when none of the European carriers seem to be able?

European phones are free to receive calls unless in a different country, in which case the maximum charge is capped by the EU at about US$0.40/min.

The UK O2 contract charges out-of-plan outgoing calls (to UK landlines) at 20p/US$0.40 per min. Unused minutes can't be rolled forwards to subsequent months (rollover is very common for UK contracts), so you'll either end up not using all your allowance, or going over and being stung.

Compare this with my current Orange contract of 5p/US$0.10 per min out-of-plan. My data rates are high, but my phone doesn't really use the interwebs that well.

Foreign roaming costs totally take the piss at £7.50/US$15 per megabyte! within Europe. And the "unlimited wireless" doesn't work, so you're back to hunting down open wireless networks or paying through the nose.

This isn't a problem for other mobile phones where you get such a lousy rendering that images are often not downloaded, thus it's cheaper. Similarly with scripts which the iPhone will run, so end up downloading more crap.

And again, that's probably using the GSM network at 19k2 baud = slooooow, so pointless.

I'm not sure we'll see Pay-as-you-go iPhones any time soon. Unless they charge $1/min and some daily data charge.

 

[weg]

The iPhone has been out for about a year and it already has more of a user base than the Windows mobile OS. I'd be very worried, m$oft.

That's just plain wrong. You're referring to an article that claimed that the market share of the iPhone browser is higher than the market share of Mobile Internet Explorer. According to Wikipedia, the market share of WM is 6.1%, while the market share for iPhone OS X is 1.3%. The market share of Symbian OS, btw, is ten times larger than iPhone and WM combined.

 

[eastcoastsurfer]

You talk as though Apple don't make any further profit from an Apple mac after the initial purchase. There are things like Applecare, software, upgrades and accessories.

Your "300%" needs backing up if I'm to take your point seriously. I understand what you're trying to say but you're just throwing numbers at me, nobody knows how much they take from each contract over the 18 months.

I think we need to define lag here. You're talking about Leopard being delayed as the "lag" while I got the impression from the other poster that the quality of the product "lagged". I'm under the impression that the quality of the product didn't lag.

If there was a burden placed on other products, we certainly wouldn't know about them either.

As far as how much Apple gets from the subs...they are a publicly traded company and as such must end up documenting where most (all?) of their revenues come from. I thought by now most people knew how much they were getting from each ATT contract at least.

And while Leopard isn't a bad product it's certainly far from done. Half implemented features such as stacks (the constantly changing icon based on the first item in the folder-did they even do usability testing?), spaces (randomly jumping spaces, can't set a background for each, oddness on multi-monitor), and time machine (does the airdisk work yet?) show me that they are struggling for resources. I guess they are too busy making sure the iphone stays locked so they can continue to get their $5-$15/month from each sub...

 

[aristobrat]

My question was asking why the European carriers price their iPhone plans so expensively compared to their other plans.

In the US, AT&T's iPhone plan is basically the normal rate for a voice plan + $20 for unlimited data+ 200 SMS. Hardly a bad deal.

And while Leopard isn't a bad product it's certainly far from done.

The same complaint was made by some about Tiger when it first came out, too. I'm not aware of any time Apple's released an OS that was unanimously thought to be perfect and complete. There's always some talk of it having being rushed, etc. AFAIK, Apple wasn't considered resource constrained back then.

 

[eastcoastsurfer]

My question was asking why the European carriers price their iPhone plans so expensively compared to their other plans.

In the US, AT&T's iPhone plan is basically the normal rate for a voice plan + $20 for unlimited data+ 200 SMS. Hardly a bad deal.

Because the EU carriers are passing along the Apple plan tax directly to the consumer. In the US, ATT is sucking it up for now. I wonder if the EU carriers put their plan on the bill then the 'extra' they send to Apple each month itemized out, would people still want the phone. The true cost of the iphone is so high, I'm not sure how anyone in the EU especially can think it's worth it. It certainly does appeal to the 'oh shiny' crowd so I guess that gets you somewhere.