The Apple (NASDAQ: AAPL) iPhone is not selling up to expectations in the UK. According to the Financial Times, "O2 said shortly before the iPhone's UK launch on November 9 that it expected handset sales of 200,000 in the first two months, but people familiar with the situation said the actual figure for the first eight weeks was about 190,000." But, a number of analysts viewed sales estimates from O2, the exclusive iPhone reseller in the UK to be very conservative. Estimates by research firm Gartner were as high as 400,000.
The reason for the slow sales may be the pricing of the iPhone and its calling plan. The handset plus a minimum contract cost about $1,700.
If the news were in a vacuum it might not sting. But, just a week ago China Mobile (NYSE: CHL) said it had cut off conversations with Apple over distributing the product in China, the world largest cell market. The price of the calling plan Apple wanted to market in the world's most populated nation may be been a sticking point.
If sales in the UK and Europe do not begin to exceed expectations and an Asian roll-out is slow, that leaves the U.S. to carry the burden of Apple hitting its 2008 sales targets.
That may be a little too much to expect.
Douglas A. McIntyre is an editor at 247wallst.com.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
1-20-2008 @ 5:20PM
i-man said...
You could at least present both sides of the story. China Mobile says they broke off talks, but Steve Jobs says they weren't even negotiating yet. Convenient of you to only tell one side of the story, the one that makes Apple look bad (pretty much what you always do).
1-20-2008 @ 8:13PM
David Chartier said...
You also conveniently left out the fact that Apple has already sold 4 million iPhones to date, with the bulk of those selling in the US due to late debuts in France, Germany, and the UK.
If you have a beef with Apple or simply don't like the company, that's fine. But printing only the facts you choose to help manipulate a story to your whim is jackass blogging, plain and simple.
1-21-2008 @ 4:22AM
nikolatroev said...
I doubt this data. AAPL is going to do very well in the UK.
Another thing: An article on AAPL drove me to this blog, and later I started reading the guy, I even met in at the Traders Expo,he is just smart, hilarious, and good-hearted.
He is at http://www.WallastonInvestments.com , anyways, go AAPL!!!
1-21-2008 @ 1:12PM
Fred said...
I'm not surprised by this at ALL. Apple's sales are largely driven by sales of their products in the (unfortunately large) drug subculture of the United States but thankfully they have never taken root in the ROW they way they have here.
-Fred
1-21-2008 @ 6:05PM
xcomme said...
You need to show us how well Gartner could predict before using their data. Their estimate of Mac US shipments were way off in the previous two quarters.
On Jan 15, Steve Jobs has cleared off the rumor about China Mobile, why are you still using wrong rumor 5 days later? Are you well informed?
1-21-2008 @ 1:49PM
David said...
FUD.
190,00 units sold in the first 8 weeks = 3392 per day. 61 days (two months) x 3392/day = 206,912. Sounds like sales are exceeding the 200,00 per two months rate.
So, Mr. McIntyre: had a little trouble with arithmetic?
1-23-2008 @ 2:13AM
Fitz said...
You assume that Jobs speaks the total truth? What if they were in talks and they broke down b/c AAPL wanted too much of a cut?? Jobs 'could' say nothing was on the table and it all appears speculation.
How's AAPL stock doing now???? Apparently Doug is not the only apprehensive one.