Apple Orders 12 Million iPhones

Dennis Faas's picture

Recent reports suggest that Apple has ordered 12 million mobile phones from Hon Hai Precision (better known as Foxconn), a Taiwanese manufacturing company. (Source:

While Apple has not yet commented on the order, many critics are not surprised about the news.

Analysts have been predicting that Apple would release a mobile phone in early 2007. In a research note, UBS Analyst Benjamin Reitzes wrote that the order aligns with expectations that "a cell phone could be discussed in January at Macworld with limited sales by February and broader distribution in spring 2007." (Source:

There has also been speculation on the features of the phones that Apple will be bringing to the market.

Jesse Tortora, an Analyst for Prudential Equity Group, stated in a research note that he expects Apple to reveal two models. He predicts that one of the phones will be a smart phone that contains a keyboard and features both music and video capabilities, while the other will be a slimmer model that also offers music capabilities. Further, he expects that one of the two will feature WiFi. (Source:

Venturing into the mobile phone industry is a new direction for Apple. The company has generally relied on intricate attention to detail on its hardware to grab hold of its market share.

However, Apple's strategy of creating superior hardware does not fit well with the mobile phone industry. Since hardware is generally subsidized by carrier contracts, other industry players are able to offer phone rebates and specials, while still offering models that are packed with features. (Source:

Still, many analysts are speculating that iPhones will be a huge success, bringing in revenue of up to $2 billion in under a year. With Apple's solid track record in handheld electronics, it won't be surprising if the new iPhone doesn't fall far from the tree. (Source:

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