Apple iPhone launch weekend sales

05Jul07

The Apple iPhone, which was unveiled by Steve Jobs at Macworld in January 2007, finally went on sale last weekend and the sales figures have now been reported.

Apple iPhone Image

MacNN has reported that 95 of the 164 Apple Stores in the US have already sold out. And AT&T entire stock is likely to be gone by the end of this week unless further shipments can resupply. Jointly the only 2 retail suppliers of the new mobile phone sold 700,000+ handsets in the 3 days over the launch weekend (Fri 29th June – Sun 1st July).

Apple would have made a profit of between $200 million and $266 million in 3 days (not including marketing costs), on sales somewhere between $350 million and $420 million, significantly more than earlier estimates of Apple having a $300 million weekend.

The device costs either $499 (4GB memory) or $599 (8GB memory) and buyers must also commit to a two-year contract with AT&T that will cost them a minimum of $59.99 per month.

Steve Jobs announced in January that he wanted to achieve a 1% market share with the iPhone in it’s launch year. This would require sales of 10 million units by 2008.

Apple iPhone

While the iPhone has some features, such as it’s 2 megapixel camera, that are already commonly outclassed by models from established rivals such as Samsung, Sony Ericsson and Nokia. The handset has also been criticised because it does not support voice-activated dialling and tt also does not let people choose ringtones beyond the 25 pre-installed on it. Initially the handset also wasn’t compatible with instant messaging services, but in the last month a fix, at least for Meebo users, appears to be available. In the U.K. the product is likely to be available on an 02 contract.

However the incorporation of iTunes and Apple design functionality will be attractive to a significant audience – particularly those looking for a new iPod Nano and already considering a new mobile on contract. The key issue then for such consumers will be do they wish to switch mobile network to use the iPhone, as the product is likely to remain tied to just one network in each market at least at launch.

In a company-wide message relayed to Apple employees on 28 June, Steve Jobs said every worker who had been at the company for more than a year would get one of the devices for free.

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