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Filed under: Analysis / Opinion, Apple, iPhone

3GS shortages expected overseas due to demand

by Mike Schramm (RSS feed) on Oct 16th, 2009

It's like Econ 101 with the iPhone lately, says our old friend Piper Jaffray analyst Gene Munster. Demand is high, supplies are low, and so shortages are apparently expected. Especially in international markets, there just aren't enough iPhones to go around -- Munster cites a fellow analyst's report that 3 Italia, the Italian company charged with selling Apple's smartphone in that country, is selling 20K iPhones, but could be selling many more if they had the stock to do so.

Of course, they probably don't need to -- iPhone sales are already holding the company up above expectations, and Apple may even be figuring that a little demand never hurt anybody. Why sell a ton of phones when you're already selling more than you expected to? I doubt it's as mysterious as that (they probably expected to sell a certain number and it turns out there are more iPhone fans than they counted on overseas), but even if shortages happen, no one's going to be second guessing Apple's strategy. As far as straight results go for the iPhone, they haven't done anything wrong yet.

[via 9to5Mac]

Tags: 20000-iphones, 3-italia, apple, demand, iphone, iphone-sales, iphone3gs, sales, supply

Filed under: Analysis / Opinion, App Store

App Store Trends: Prices race to the bottom

by Erica Sadun (RSS feed) on Sep 26th, 2008

Last spring, TUAW asked how much you would pay for iPhone software. Well, it looks like $0.99 and $1.99 are the new $39.99 and $49.99 as far as mobile distribution goes. The App Store bucked the trend of high-priced phone software and now is ratcheting those prices down even further.

Developers are responding to high application supply and dwindling demand by lowering their prices across the board. As the App Store novelty wears off and consumers forget about once-"hot" items, the typical price tag continues dropping. Games that cost $9.99 at launch are almost universally $4.99 and less.

Apps like Koi Pond proved that $0.99 can generate a lot of sales. Short term sales are quickly being eclipsed by long term price drops. We typically get our tips about upcoming price changes directly from developers; 148Apps has introduced a automated price drop detector.

As the App Store continues to evolve from "get rich quick" to make money slowly, devs are working to find that sweet spot -- charging enough to earn a living but not so much that they aren't out-competed.

Based on these downward pricing trends, I expect ad-supported apps to really start taking off soon, the way they are doing in the jailbreak world. If developers can't build their revenue stream from charging higher prices, they may turn to alternative monetizing models instead.

Tags: competition, demand, economics, get rich quick, get rich slowly, GetRichQuick, GetRichSlowly, pricing, supply

Filed under: Retail, iPhone

iPhone orders at online Apple Store see 2-4 week delays

by David Chartier (RSS feed) on Jun 30th, 2007



Uh oh, it looks like Apple might have dumped the majority of their iPhones into brick and mortar stores, making web shoppers wait longer than usual for a new device. The online Apple Store currently displays a 2-4 week shipping time for both 4GB and 8GB iPhones. While this could simply be an overestimation to help manage the demand, it might be motivation for more users to try their luck if they have a local Apple or AT&T store. Just remember: only one phone per customer is allowed at AT&T stores, while Apple has a cap of 2, and you can always check your local Apple Store's iPhone stock from the comforts of your pajamas before making the trek.

Thanks to everyone who sent this in.

Tags: apple store, AppleStore, demand, iphone, retail, stock

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