Apple's iPhone Sales: Good But Is That Good Enough?
Iphone's first weekend is in the books and while three days of sales hardly determines the entire story, it is an important "split time" that Apple investors should consider.
Piper Jaffray concluded its channel checks late Sunday and determined that Apple and AT&Tsold 425,000 iPhones this weekend: 200,000 in the US; 250,000 overseas. This was essentially right in line with the firm's expectations. To the number!
Piper's projections were on the conservative side, which is a far cry from the "way-out-in-front" expectations for the first iPhone. As an example, RBC Capital said iPhone numbers this time around could approach 1 million units in its first weekend.
But by and large, there was some thought on the Street that expectations generally were somewhat muted, and that Apple would exceed them. So in a quirky, "only the Street" kinda way, these numbers might seem a little disappointing.
However, they are way ahead of how the first iPhone performed. Yes, iPhone 3G launched in 22 countries, but that doesn't matter. Fact is, iPhone is working its way into dozens of new markets and that's good for the platform and great for Apple investors.
Iphone is on track. Tracking well and right in line. That's good but not great. Apple reports earnings next week. We'll get more color then. For now, good is good.
UPDATE: Apple contacted me to let me know that iPhone 3G actually launched in 21 countries, not 22 as I had reported, since unbeknownst to be, France's launch has been pushed off to July 17. A small point, but I want to be accurate. Separately, Apple also announced that the new Apple App store enjoyed more than 1 million downloads so far.
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