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DaffyDuck

Apple Hits 1 million iPhone mark early

http://www.macnn.com/articles/07/09/10/1.million.iphones.shipped/

Apple on Monday announced that it has sold its one millionth iPhone over the weekend. The milestone, recorded 74 days after its introduction on June 29, surpasses Apple's own "end-of-quarter" estimates and comes on the heels of a significant price reduction last week. "One million iPhones in 74 days-it took almost two years to achieve this milestone with iPod," said Steve Jobs, Apple's CEO. "We can't wait to get this revolutionary product into the hands of even more customers this holiday sea- son." The company previously estimated that it would sell 1 million iPhones -- the best-selling device among smartphones during the month of July -- by the end of the quarter.
In January, Apple CEO said he hopes to sell 10 million iPhones in 2008, which represents a one percent piece of overall mobile phone market.

Last week Jobs announced a controversial price drop of $200 on the three-in-one mobile device, which led to backlash by some early adopters. In a move that some analysts claim was scripted, Apple subsequently responded by offering $100 store credit to his customers, but said that details were due later this week.

"The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced."

The company inked a deal for faster 3G wireless and other technologies that could make its way into the next version of the iPhone for Europe as early as November, according to a weekend report based on offerings listed at T-mobile's website.


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Posted on: 9:13 am on Sep. 10, 2007
IBFarang
My hats off to Apple for reaching the 1 million mark. While reaching the 1 million mark so early this month seems to indicate the price cut was not necessary to reach the mark, I am still not convinced the price reduction was more related to inventory issues than it was to sales issues.


Quote: from DaffyDuck on 11:07 pm on Sep. 10, 2007
"The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced."



Yea, the folks over at ThaiVisa seems to be full of praise for the support here in Thailand for Apple products:


ipod whinger

Apple whingers





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Posted on: 7:04 pm on Sep. 10, 2007
ThaidUp
IBF I am shocked. I thought the people at ThaiVisa were still using 8-track players.


Thai Girls : Meet Sexy Thai Girls
Posted on: 8:21 pm on Sep. 10, 2007
IBFarang

Quote: from ThaidUp on 10:15 am on Sep. 11, 2007
IBF I am shocked. I thought the people at ThaiVisa were still using 8-track players.



No many use cassettes, and I think most of them are recovering substance abusers – but they’re great with acronyms.


Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 8:35 pm on Sep. 10, 2007
DaffyDuck

Quote: from IBFarang on 8:58 am on Sep. 11, 2007

I am still not convinced the price reduction was more related to inventory issues than it was to sales issues.
Like I said, you believe as wish -- I'll maintain maintain my view based on the resources I posted earlier.

Apple pre-ordered 3-5 million units (depending who you talk to) in order to be absolutely sure and certain to meet initial demand and cover the months following that. It has been confirmed that Apple has reduced the production, and subsequent deliveries of iPhones from their main factory (Foxconn) - this news was (as usual) misinterpreted by 'analysts' as "iPhone is selling badly, so Apple is reducing production".

In fact, as iPod Touch was going into production, using largely the same components of iPhone, *and* Apple ready to ramp up production of a model destined for the European market, Apple managed to use economies of scale to negotiate far better prices on components, and thus significant slash unit costs on the next batch of iPhones and iPod Touch devices. 'Significantly' being in the double-digit range.

For example, Balda (german manufacturer of the multi-touch overlays) has confirmed a new order of 6-8 million units from "a large mobile phone manufacturer" (it's now clear that this is Apple). Various Flash RAM manufacturers (notably, Samsung) have confirmed that Apple is constraining their available production runs. With iPod nano, iPod Touch, and iPhone being Flash RAM based, this is no surprise.

Now, do the math - 3-5 million initial units, 6-8 million additional units, leaves you with 9 to 13 million units in final circulation -- and this does not even take into consideration whatever number of units the production run for Asia will include (by which time Apple will manage to further reduce component costs, and add additional, or better features).

Of those 3-5 million initial units, they will probably be at the 2-3 million mark by the time the next model is being released in Europe (around November/December), with an intial release of the 8gb model as we know it (just with European localization) and higher end model with additional RAM, and maybe some extra features, or improvements - selling in Europe in the $499/$599 range. The high-end model stands a decent chance of having 3G features, while the low-end model will just have EDGE. This supports why O2 in the UK is expending and building out their EDGE network (while they have a decent 3G network), to accomodate a low-end model. That way, as the US runs nearly out of the existing generation of the 8gb model, the models introduced in Europe can get introduced in the US, as the 'Generation 2.0' iPhone, at new price points, after January (at which point it will be over 6 months since the original introduction, the remaining 8gb models will end up on the refurbished/clearance store for $299).

As such, I maintain the present strategy is a means to establish aggressive market share growth, all the while proactively clearing inventory of a model that cost Apple more to manufacture, for an identical one they make more profit on.

Also, bear in mind, the new $399 model, no longer includes a dock ($39), or charging adapter ($30), which somewhat offsets Apple reducing the price by $200.

I hope these explanations do help you understand the situation a bit better, as there's really not much more I could do to provide you with information - I follow what this company does quite closely, and I am probably more aware of their strategies than most self-proclaimed analysts (and I still get plenty wrong). Either way, believe what you will.



Quote: from IBFarang on 8:58 am on Sep. 11, 2007
Yea, the folks over at ThaiVisa seems to be full of praise for the support here in Thailand for Apple products:
Sadly, Apple has ot yet invented something to address stupidity:

- The guy could have simply downloaded QuickTime (it's a free download) and purchased a QuickTime Pro activation key (plenty of places to get them, including Apple, for $29.95). In fact, professional video applications include such a 'Pro' activation key -- and the one he claims he had for QuickTime 7.1 easily works with Quicktime 7.2. In fact, to add insult to dumb-ass injury, if he had just run Apple's Software Update, the system would have handily downloaded the needed version of QuickTime and installed it - automatically - and carried his 7.1 activation key over just as nicely. It is Quicktime *6.0* keys which expired and require to be updated to QT 7.x, yet this idiot claims to have a 7.1 key which does not work for QT 7.2 (all the while unable to run Software Update). 'nuff said.

- Regarding the guy's iPod -- he is given the option of having his iPod swapped for another one. Easy enough. It's how Apple handles swaps here in the US as wel (unless it has a custome laser etching, in which case it gets sent in, and the back panel gets replaced for another one's innards). Furthermore, smart people spend the $40 on a AppleCare for an iPod and get it covered for 3 years. Apple Care is valid internationally, though similarly, it is handled by a swap of the hardware. Why? Because it's faster, and the customer does not have to wait. This policy (the swap) is confirmed by the original poster, and confrmed by other contributors in the thread.

If not covered by AppleCare, the cost for repairs (again, a swap) is $150 -- so, right along the stated 6500 THB this guy was quoted.

Could you explain to me in what way these examples demonstrate 'bad' support (as you seem to gleefully imply) ? There's plen ty of examples of support horror stories (and I have many to tell myself) simply because even Apple isn't immune from the occasional screwup, but the examples you singled out are pathetically user-error of the worst kind.

You will need to show a bit more competence in your pursuit of negativity in regards to Apple... so far, you are coming up short.


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Posted on: 8:39 pm on Sep. 10, 2007
IBFarang
Well your math only hold up if Balda is the only Apple supplier for the multi-touch overlays, and most of those analysts reports were about cutting orders from around 9 million down to 4.5 million. So I am not sure where the original 9 million fits into your math either. And unless the new iphones are drastically different than the older versions it seems that Apple could simply modify the orders to comply with the new phone specs (or even the itouch for that matter) rather than cutting the orders in the first place.

Additionally based upon your math with the 9-13 million phones going into circulation coupled with Apples claims to have sold 1 million now, and a target of 10 million in 2008 means they have basically already placed orders for all the phones they will need until the end of 2008?

I am not really all that interesting in debating the orders Apple has or has not place with suppliers or any changes they may or may not have made with them over the past few months. It is pretty clear that we have differing views on why the price cut was made and it is not likely that either of us will end up changing our minds.

In any case the price is now the price and we are all patiently waiting for the European and Asian releases – well I’m not really waiting because unless someone gives me one it is not likely that I will ever own an iphone. My 1500 baht Nokia does all I need my phone to do make/receive calls.

In regard to support in Thailand unfortunately I don’t know many people that use Apple products here in Thailand (or even outside of Thailand for that matter - with the exception of some ipodders), and I don’t have the ability (I don’t read or write Thai) to research locally. So there is little I can do to provide additional information on this front.

As for smart people getting Apple Care with their purchase consumer group after consumer group will advise you not to pay for extended care/warranties as they are major profit makers and generally do not pay off for the majority of those who purchase them.


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Posted on: 9:26 pm on Sep. 10, 2007
ThaidUp
Yes especially with the new Ipod that has all the features of the iPhone except camera and phone. I think I will wait for the new version of Ipod with a little more storage than 16G before I shell of my money for it.


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Posted on: 9:37 pm on Sep. 10, 2007
DaffyDuck

Quote: from IBFarang on 11:20 am on Sep. 11, 2007

And unless the new iphones are drastically different than the older versions it seems that Apple could simply modify the orders to comply with the new phone specs (or even the itouch for that matter) rather than cutting the orders in the first place.
Okay, so once you start working for Apple, Inc. in sourcing, let's pick this conversation up again, shall we? Until then, you're probably most comfortable in your armchair, and I'm most comfortable... well, exactly where it is that I am.


Quote: from IBFarang on 11:20 am on Sep. 11, 2007
Additionally based upon your math with the 9-13 million phones going into circulation coupled with Apples claims to have sold 1 million now, and a target of 10 million in 2008 means they have basically already placed orders for all the phones they will need until the end of 2008?
I'll try not to use bigger words than I need to from now on -- 3-5 million phones initially pre-ordered, while the 6-8 million number was for *SCREEN overlays* which were ordered from Balda. Yes, and Balda *IS* the only supplier of these multi-touch modules to Apple.


Quote: from IBFarang on 11:20 am on Sep. 11, 2007
I am not really all that interesting in debating the orders Apple has or has not place with suppliers or any changes they may or may not have made with them over the past few months.
Ok.


Quote: from IBFarang on 11:20 am on Sep. 11, 2007
In any case the price is now the price and we are all patiently waiting for the European and Asian releases – well I’m not really waiting because unless someone gives me one it is not likely that I will ever own an iphone. My 1500 baht Nokia does all I need my phone to do make/receive calls.
ok. Whatever.


Quote: from IBFarang on 11:20 am on Sep. 11, 2007
In regard to support in Thailand unfortunately I don’t know many people that use Apple products here in Thailand (or even outside of Thailand for that matter - with the exception of some ipodders), and I don’t have the ability (I don’t read or write Thai) to research locally. So there is little I can do to provide additional information on this front.
ok, besides, it's irrelevant, really. Thailand is (unfortunately) an infinitessimal market compared to what Apple targets -- albeit their iPhone global stragegy could change their attitude of neglecting the 'small' markets (for example, Austria is a tiny country, but it represents a huge chunk of Nokia's European marketshare; as such, Thailand's mobile market is not necessarily insignificant, compared to its Mac market)


Quote: from IBFarang on 11:20 am on Sep. 11, 2007
As for smart people getting Apple Care with their purchase consumer group after consumer group will advise you not to pay for extended care/warranties as they are major profit makers and generally do not pay off for the majority of those who purchase them.
Yeah, okay, you're just full of third-party wisdom. If it's not worth protecting your iPod investment with $40 for three years (or an iPhone for $60, for two years), then I guess you won't be complaining when you have to fork out a significantly larger sum for repairs within that time period.) over.


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Posted on: 11:00 pm on Sep. 10, 2007
Broken Leg


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Posted on: 11:28 pm on Sep. 10, 2007
IBFarang
Like I said not really interesting in debating orders Apple has or has not placed or what original order number were or were not so I’ll give the other board members a rest and not continue a debate in regard to the majority of your post.


Quote: from DaffyDuck on 12:54 pm on Sep. 11, 2007
Yeah, okay, you're just full of third-party wisdom. If it's not worth protecting your iPod investment with $40 for three years (or an iPhone for $60, for two years), then I guess you won't be complaining when you have to fork out a significantly larger sum for repairs within that time period.) over.



If I don’t have enough confidence in a supplier to provide me with a product that won’t break down in 2-3 years of use then I don’t buy a product from them – I have enough confidence in my own ability not to break the damn thing on my own so all I have to worry about is the quality of the product and not my foolhardiness.

Guess that might be why I don’t own any Apple products?





Bangkok Girls : Meet Attractive Thai Girls
Posted on: 11:48 pm on Sep. 10, 2007
     

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