iPhone Sales Projected to Slow

Dennis Faas's picture

Sales of Apple's iPhone remain strong as illustrated by the release of figures for the first quarter of fiscal year 2008 (last 92 days of 2007). The company reported that it sold 2,315,000 iPhones during this period, which also encompasses the holiday season. The latest figures provided by CEO Steve Jobs during his Macworld 2008 keynote presentation on January 15, stated that Apple has passed the 4 million unit threshold. (Source: arstechnica.com)

The impressive total amounts to an average of 20,000 units sold per day, giving the iPhone a 20 percent market share of international smart phone sales, second only to Research In Motion (RIM), which stands at just under 40 percent. (Source: arstechnica.com)

Jobs has praised the iPhone as another Apple success, beating out the combined sales figures of Palm, Nokia, and Motorola. However, some analysts are sceptical of the iPhone's ability to maintain its current sales and expect consumer interest in the device to level off in 2008.

The cautious reception to the iPhone in the UK since its release in November is largely attributed to a number of marketing strategies utilized by Apple. The upfront cost of an iPhone in the UK is 269 pounds ($528), but consumers are also required to purchase a minimum 18-month contract, which augments the total upfront investment to 899 pounds ($1,763). Additionally, Apple has teamed up with O2, a regional telephone network company which has exclusive rights to sell contracts of the iPhone. (Source: ft.com)

These marketing strategies are widely cited by analysts as the primary reason why the iPhone has not surpassed the conservative sales projection of 200,000 units sold for the first eight weeks of its UK debut. O2 maintains that the iPhone is a resounding success, claiming that it is "delighted with the response to the iPhone, which has seen unprecedented levels of customer satisfaction". (Source: macworld.co)

Despite lower than expected UK sales, the iPhone is set to become a major player in the international smart phone market, especially with the planned introduction of the device in Asia sometime this year.

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