iPhone


August 25, 2008

IPhone -Predictions: Apple iPhone Sales to Exceed 5 Million for Quarter; Record Mac Sales


Despite a slower economy and a series of problems with its widely hyped third-generation iPhone, Apple (News - Alert) is reporting record Mac sales this quarter and analysts are calling for more than 5 million iPhones to be sold in the same period, according to an online hi-tech news source.
 
According to TG Daily Managing Editor Wolfgang Gruener, the iPhone’s (News - Alert) availability Friday in 20 additional nations is helping fuel growth that has analysts adjusting shipment estimates.
 
“Summer vacations, economic woes, rising oil prices and a generally growing uncertainty about the health of the economy seem to have virtually no effect on Apple yet,” Gruener writes. “As we approach the end of Apple’s fourth quarter and fiscal year (September 30), analysts are predicting record Mac and iPhone sales that significantly exceed previous Wall Street estimates. The current consensus is that Apple could sell 5 million iPhone 3Gs and 3 million Macs marks during the quarter.”
 
The news follows a series of problems with the new iPhone, whose unveiling industry insiders are still calling the major telecom event of this year.
 
An online news source for technology consumers reported last week that an Apple Inc. firmware update that’s designed to fix connection problems for the new iPhone isn’t working as planned.
 
According to NewsFactor.com writer Jennifer LeClaire, Apple’s firmware update release yesterday is yielding dropped calls, bad reception, service interruptions and sudden network switches.
 
“The glitches were reportedly related to a chip inside Apple’s music-playing cell phone,” LeClaire writes. “BusinessWeek reported last week that Apple was working on a remedy through a software upgrade.”
 
Yet Apple chief Steve Jobs reportedly has admitted that his company took on too much when it launched dozens of applications for the iPhone 2.0 simultaneously last month, saying in particular that the introduction of a new auto-syncing service was “not up to Apple’s standards.”
 
According to online industry magazine AppleInsider, and reportedly first seen by Ars Technica, Jobs admitted in an e-mail sent to employees recently that MobileMe was launched without proper testing and even mapped out a different launch strategy.
 
“It was a mistake to launch MobileMe at the same time as iPhone 3G, iPhone 2.0 software and the App Store,” Jobs said, according to the magazine. “We all had more than enough to do, and MobileMe could have been delayed without consequence.”
 
 
According to Apple’s blog, the transition from .Mac to MobileMe presented unanticipated problems, leaving iPhone and iTouch users without a service and leading the company to offer an extension.
 
“We will be extending subscriptions by 30 days to customers free of charge to express our appreciation for their patience during the transition period,” Apple posted on its blog.
 
MobileMe is one of the dozens of new applications for the much-hyped iPhone that are designed, essentially, to turn the mobile device into the only piece of telecom equipment a human will need to get through the day.
 
But until the most recent firmware problem is resolved, many iPhone users apparently won’t get through an hour.
 
According to LeClaire, Apple declined to offer details about its iPhone 2.0.1 update, other than saying it included “bug fixes.”
 
“However, comments in Apple’s support forum say plenty about the latest attempt to rectify poor user experiences,” LeClaire writes. “In fact, the update seems to be causing new issues, apparently interfering with the GPS function, among others.”
 
Yet, thanks to incredibly strong branding and marketing strategies, including “unique vertical product integration,” Apple has settled into what Gruener calls “a very comfortable and profitable position.”
 
The writer speculates on reasons for the computer giant’s successes, including the Intel (News - Alert) switch, the release of Leopard, product releases and price drops. Gruener also cites a report from Student Monitor which says that of 1,200 participants, 84 percent full-time four-year undergraduates in the United States are planning to buy a laptop in the next 12 months. Of those, 43 percent are looking at a Mac, with 22 percent eyeing a Dell (News - Alert), the second-most popular selection.
 
“Three years ago, 46 percent planned on buying Dell laptop and only 17 percent a Mac,” Gruener writes.
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is The Compelling ROI Benefits of Contact Center Quality and Performance Management Technologies, brought to you by Voice Print International (News - Alert).

Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael’s articles, please visit his columnist page.

Edited by Michael Dinan

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