Skip to Content

Listen to the Joystiq Podcast (because your ears can't read)
AOL Tech

sales posts

Filed under: Apple Corporate, Apple Financial, iPhone

Estimates of 500K iPhone 3G S weekend sales too low by half

It's a good thing Gene Munster shaded his anticipatory numbers a bit over the weekend, otherwise he'd be in the market for a new crystal ball. As mentioned yesterday, the signs were pointing to a bigger opening weekend for the latest handset from Apple, and the results did not disappoint: in a company press release this morning, Apple announced sales of 'over a million' iPhone 3G S units through Sunday 6/21. Also noted in the brief release were the six million downloads of the iPhone 3.0 software update; no details on the number of iPod touch users who have also updated.

In addition to the raw number -- impressive enough -- there are two other tidbits in this release that bear mentioning. One, it's got a quote from Steve Jobs; this reinforces the notion that El Jefe Esteban is on his way back to the iCEO seat on a more active basis, as reported in the Wall Street Journal on Friday. Two, it looks like bloggers and journalists aren't the only ones having a problem with the odd spacing on Apple's latest product name; the press release repeatedly refers to the new phone as the "iPhone 3GS." We feel your pain.

[via AllThingsD]

Filed under: iPhone

3G S sales expectations shift higher, Apple offers $30 credit for activation issues

It's Father's Day here in the USA, UK and Canada (best wishes to all the Mac daddies out there!), and if the tea-leaf-reading over the iPhone 3G S launch is accurate, it looks like quite a few of those dads may have gotten a shiny new phone as a gift from the spouse and kids. Which would have been really thoughtful and unexpected. If I had gotten one. Anyway.

The pre-launch expectation from analyst Gene Munster was for a comparatively modest 500K units sold over the weekend vs. the 3G million-phone launch, but now his firm has suggested that may have been a conservative number, as noted by AppleInsider. Between AT&T's citing of 'hundreds of thousands' of pre-orders for the phone, and O2 announcing that first-day sales for the 3G S blew past the totals for the 3G last year, it's possible that the 3G S could creep up towards that million-phone number and blockbuster territory.

Despite (or perhaps due to) the brisk sales pace, AT&T's activation infrastructure did not seem to be ready for the influx of account changes; this is a familiar situation, as last year's 3G launch triggered similar delays. Many new buyers (including our own Steve Sande) were faced with activation delays between two hours and two days. In recognition of the aggravation and inconvenience, Apple has begun emailing affected users with the offer of a $30 iTunes credit to be delivered Monday morning, according to Everything iCafe. If you got a credit email, please let us know.

Filed under: Analysis / Opinion, Software, Odds and ends, Apple

Talkcast reminder: 10pm ET this evening with special guest Alykhan Jetha of Marketcircle

Our weekly interactive podcast goes live on the air tonight at 10pm Eastern time over on the Talkshoe page, so if you're around and ready to talk some Unofficial Apple Weblog news with us, please come by and join in. I'll be hosting this evening, and Dave Caolo will be along for the ride with us, as well as a slew of other familiar names and voices from TUAW and our community. And we'll be welcoming Alykhan "AJ" Jetha as our special guest for the evening -- he's the CEO of Marketcircle, makers of Daylite and Daylite Touch, business productivity management apps for the desktop and the iPhone. Our own Stephen Sande reviewed their products here on TUAW earlier this week.

Also tonight on the show, we'll talk about all of the new iPhone hardware rumors floating around, and try to separate the wheat from the chaff there. There's also rumors of an OS update that we'll try shaking down, and the iPhone 3.0 beta has hit a new milestone, so we'll look that over as well. iTunes prices are up, and sales are down, so we'll try to figure out why. And since this is the eve of the release of Tweetie for Mac, we'll talk about which clients we've used for Twitter on the desktop before and if Tweetie will be everything that everyone else is saying it is. Should be a lot of fun -- tune in promptly at 10 Eastern to give us a listen.

To participate on TalkShoe, you can use the browser-only interface, or you can stick with the classic TalkShoe Pro Java client; however, for maximum fun, you should call in so we can hear your dulcet tones. For the web UI, just click the "TalkShoe Web" button on our profile page at 10 pm Sunday. To call in on regular phone or VOIP lines (take advantange of your free cellphone weekend minutes if you like): dial (724) 444-7444 and enter our talkcast ID, 45077 -- during the call, you can request to talk by keying in *-8. SIP or Gizmo users can connect directly to Talkshoe by following the instructions here. Talk with you then!

Recording support for the talkcast is provided by Call Recorder from ecamm networks.

Filed under: Analysis / Opinion, iTS, Multimedia, iTunes

Billboard: iTunes prices up, sales down

I coulda told you this, though I am a little surprised that we've seen the results so fast. Despite iTunes having put the new tiered pricing into effect just last week, Billboard is reporting that they've already seen sales drop on the higher-priced tunes. The iTunes Top 100 chart has 40 different songs with a new price of $1.29, and one day after the changes, those songs dropped an average of 5.3 places on the chart, while cheaper songs moved up on average. And on the second day of the price change, ten of the tracks that saw their prices rise within 24 hours dropped a huge 12.4 chart positions on average.

Of course, we're talking only a matter of days here, and there are all kinds of things that could have affected this average drop -- lots of the tracks that became expensive were from a Rascal Flatts album, and it could be just that the album has lost popularity, bringing the average down. And don't forget that even though these sales figures may be dropping, they haven't dropped nearly enough to show a loss of revenue (though fewer songs may be selling, they're still making more money).

But for those convinced that higher prices mean lower sales numbers, these first few days of figures will seem to connect all of the right dots. We'll have to wait and see if the long-term effects match up to the figures Billboard has seen so far.

Filed under: Apple Financial, iPhone

Analyst Roundup: Bullish on the iPhone

UBS analyst Maynard Um says that Apple could sell 7 million iPhones in the first quarter of the year if they sell a low-cost, 4GB model, according to Electronista.

Citing "checks" with industry partners, Um claims a 4GB model is in the works, though it's unclear if it will be a regular iPhone at a lower price point, or a smaller iPhone nano device rumored to be in development. While it may cannibalize sales from the current low-end 8GB model, a significantly lower price could add 1.5 million more sales for the quarter.

Generator Research's Andrew Sheehy goes even further, projecting that Apple could sell 77 million iPhones by 2013, according to Philip Elmer-DeWitt. Sheehy has three reasons why Apple will dominate the smartphone business:

  • Apple's ability to combine hardware and software, making it easy for users to consume
  • The App Store's vertical platform model leads the market so far
  • Smartphones are the only kind of phone that Apple makes, unlike other handset manufacturers like Nokia.

Sheehy says that, among other recommendations, Apple must broaden its offering to include higher- and lower-end units, including tablets and entry-level smartphones: All with access to the App Store.

He also says that Apple will capitalize on the paralysis brought on by a weak global economy, and use its cash to get "one or two design cycles ahead of the competition."

"When rivals start spending again, they may discover that Apple has built an unassailable lead," Sheehy writes.

Filed under: Analysis / Opinion, Humor, Holidays, App Store

Christmas iPod touch and iPhone gifts boost App Store volume


Hello and welcome once again to The Obvious News. Our top story today: the sky remains blue, and we'll have a full report by our man on the scene Chip Thompson about that later. But first, this: apparently App Store downloads are up thanks to large holiday sales of the iPhone and iPod touch. This comes as a shock to absolutely no one, but reports are coming in from developers, publishers, and browser reports and search terms alike that App Store downloads and interest have jumped up three and four times over, thanks, it seems, to more people receiving iPhones and iPod touches for Christmas and the other winter holidays.

John Sargent of The Obvious Institute tells us why: "Well, iPod touches are pretty boring without apps, you know? And I guess people probably want to try out apps on their new iPod touches." Thank you, John -- painfully obvious. Our technology analyst Ms. Common Sense also tells us that any time Apple sees a bump in sales of their devices, the App Store will have its own sales bump soon after.

In other Obvious News, having too many meetings can apparently make you grumpy. We'll be back after these messages. Obviously.

Filed under: Software, iPhone, iPod touch

Sketches on sale through December 31

The highly-rated and popular drawing app for the iPhone and iPod touch, Sketches, has been on sale through Christmas. Now LateNiteSoft has extended the sale through December 31 to give more people the opportunity to draw on their pocket devices.

Sketches (click for TUAW review) is not only fun to let the kids play with, but it's great for creating quick drawings and annotating iPhone pictures. It comes with a bunch of pre-created shapes, you can use photos or a map of your current location for a background, and there's even an eraser available. It's the most drawing fun you can have without a Newton MessagePad (by the way, my MP2100 will be accompanying me to Macworld Expo again next week).

Sketches has been a favorite in the App Store (click opens iTunes) since July, and it's now in version 1.4. The App normally sells for US$4.99 / €3.99 in the App Store, but during the sale it is discounted 60% to the low price of US$1.99 / €1.59.

Jorge Llubía, co-founder of LateNiteSoft, has stated that there will be a 1.5 release, and then Sketches 2.0 will be released with major new features. Both of the upgrades will be free to registered users.

Filed under: Apple Financial, iMac, Macbook Pro, MacBook

November sales data: Mac desktops down, laptops strong

The NPD data for November retail sales have arrived, and the news is not that cheery: year-over-year Mac sales were flat last month, while Windows PC sales grew 7 percent over 2007's total. Desktops on both platforms got hammered, with 20% drops across both platforms -- Windows machines down 15% and Mac desktop sales down a dramatic 38%. Some of this may be attributable to the long-idle Mac mini (soon to be refreshed, we hear), static feature set of the iMac, and reduced purchasing of Mac Pros and iMacs by education and corporate customers, but consumer buying is clearly down for the desktop.

The tables are turned on the portable side: year over year, Mac laptop sales grew 22 percent for November vs. a Windows increase of 15%. This is good news for Apple's refreshed portables as customers do seem to be taking to the unibody models. It's not clear from the report whether the blossoming netbook category, which includes a sizable chunk of machines shipped with a flavor of Linux, counts entirely as Windows laptop sales or if it's chopped up by the shipping OS -- I'll try to find out. Update: NPD tells me that the Linux netbooks were included in the Windows sales number, but those configurations didn't make a material difference to retail sales.

Did your microeconomic purchasing plans for year's end get derailed by the macroeconomic circumstances? Let us know below.

Filed under: Analysis / Opinion, Retail, Apple Financial, Deals, iPhone

Analyst: Walmart will sell 4.5 million iPhones in 2009

Which hardly seems believable, but you never know. Yes, Walmart, that bastion of crass commercialism, is going to be carrying the iPhone, that symbol of elegant commercialism, and what we're going to get is a whole lot of commercialism. Analyst Gene Munster (our favorite prognosticator other than the Groundhog himself) says that not only will Apple sell a whopping 45 million iPhones next year, but a tenth of them will be sold right here in America at good ol' Walmart.

Apparently he didn't change his numbers from before the announcement of the Walmart deal, since he had already planned on Apple finding other ways to sell the iPhone. But man, that's a lot of iPhones – enough to give everyone in my current city of Chicago an iPhone, and then some to spare (we'd send them to St. Louis, if we actually had a Walmart here to buy them from).

But no one's ever been proven wrong overestimating Apple sales we guess. If you think iPhones are commonplace now, wait until you see them at Walmart.

[via MacBytes]

Filed under: Analysis / Opinion, Gaming, iTunes, Developer, iPhone, App Store, iPod touch

Stats: 99 cent apps aren't selling any better


This is interesting: the prevailing argument about App Store pricing seems to be that developers are rushing down to 99 cents because apps priced there sell better (and developers say they can't fund really great apps priced there). But Mobile Orchard did a little number crunching, and their conclusion upends the whole premise: 99 cent apps don't sell any better than their more expensive counterparts. They plotted each app's popularity against its price, and while there are a few 99 cent apps out there selling better than any higher-priced app, the only real way to make the app "sell" better is to give it away for free. Above $0, price doesn't really matter than much in terms of popularity.

You could argue that Apple's 0 to 1 popularity scale doesn't tell us much (we're not looking at actual sales here, just a number Apple has given to each app in terms of downloads), but Mobile Orchard's conclusion makes sense, in a strange way: free apps, we know, are much more popular than any paid apps, and if people are willing to pay 99 cents, why wouldn't they be willing to pay more? Why should a 99 cent app sell better than an app of equal usability that costs $1.99? It shouldn't, and according to this data, it doesn't.

Very interesting. There is an exception -- in the Entertainment category, 99 cent apps do sell markedly better than the apps above them (Games, also, as you can see above, seem a little stronger in the 99 cent bar). But in the Business and Productivity categories, higher-priced apps actually sell better than their cheaper counterparts. People will pay what your app is worth, whether that's $1, $10, or even higher. The problem may be getting people to understand the app's worth in the first place (and that's where something like an App Store trial system might work), but Mobile Orchard's data says that price isn't a factor in an app's sales.

Thanks, Dan!

Filed under: Analysis / Opinion, iPod Family, Apple Financial, iTunes, iPod touch

Analysis: iTunes holds 12.6% of the US music market


Stick with us here: a new report by Forrester Research claims that of all the music purchased in the US, digital purchases have jumped to 18% of the total, and they expect it to go up to 41% of total sales over the next five years. That means that about 20% of all the music sold in the US is bought digitally. And distorted-loop.com is doing a little reasoning from those numbers -- since Apple's iTunes accounts for 70% of US digital sales, DL has decided that Apple accounts for 12.6% of all music sold in the US.

Can't really argue with that reasoning, and given that we know iPod sales are up (and increased sales of the iPod touch means more people can buy from iTunes straight to their iPods, not to mention that one of the biggest days for iTunes sales is Christmas, thanks to all the new iPods under the tree), we can probably look for that number to head even further north next year.

Filed under: Apple Financial

Analyst Roundup: Black Friday pretty good for Apple

Apple met or beat analyst expectations for sales over the weekend, selling 13 Macs and 3.4 iPhones every hour, according to one Piper Jaffray estimate.

Kaufman Bros. analyst Shaw Wu said that Apple's Black Friday promotions helped drive retail store traffic, according to reports from distributors. Wu also noted that the iPod touch is sold out at Amazon.com, which leads him to believe that Apple could sell $10 billion worth of products this quarter.

Thomas Weisel Partners' Doug Reid got the impression that Apple sales were up from last year. He was less optimistic about Dell's retail performance at Best Buy locations, noting that salespeople there were not strongly recommending Dell models at 35 stores they checked.

Weisel analysts expect Apple to sell 2.4 million Macs during the fourth quarter.

Deutsche Bank analysts also conducted their own checks over the weekend, and found demand to be "solid," considering the current global economic woes. They expect Apple to sell 5 million iPhones this quarter, and reiterated their "buy" rating and price target of $150 per share.

AAPL was down slightly in morning trading.

Filed under: iTS, Video

Sell your videos on iTunes

Good news, everyone! TuneCore has finally introduced a video distribution option for iTunes.

If you're a wedding videographer, a school play coordinator, or a computer tutorial specialist, you can now package up your video for a flat fee (60 minutes costs $550, 90 minutes costs $770, other lengths vary in pricing according to TuneCore). Here are some points you'll want to know.

  • The approval process for iTunes usually takes about two weeks and must meet the iTunes store terms and conditions.
  • iTunes store customers can either buy or rent your video.
  • All proceeds go directly to you after Apple takes its cut. The flat fee covers all of TuneCore's take.
  • You retain all rights and the agreement is non-exclusive.

Want more information? Fire off an email to movies@tunecore.com or visit their webpage.

Filed under: Rumors, iPhone

Selling 8 million iPhones

It's a numbers game. But not the numbers you're thinking of.

The IMEI (International Mobile Equipment Identity) number is on all GSM and UMTS mobile phones, including the iPhone. The enterprising geeks at AFB and Investor Village have been collecting every iPhone IMEI they could get their hands on and adding them to a Google speadsheet.

After performing the voodoo that such a spreadsheet allows, researchers have figured out that Apple has manufactured at least 5,649,000 iPhone 3Gs. Add that to the 2.4 million 1st generation iPhones sold in 2008, and you arrive at 8 million iPhones.

That's a lot of iPhones.

These are unofficial numbers, of course. But if these folks are correct, Apple will reach their goal of 10 million iPhones sold in 2008 with room to spare.

Filed under: Analysis / Opinion, Apple Financial, iPhone

Analyst: 45M iPhones in 2009

Despite issues with the iPhone 3G -- less-than-stellar battery life, dropped calls, crashes, etc. -- stock market analysts are very bullish on Apple's product.

BusinessWeek reported that Piper Jaffray tech analyst Gene Munster is forecasting sales of 13 million iPhone 3Gs in 2008, and a whopping 45 million on 2009. That's considerably higher than what other analysts are proposing, which is in the range of 11 million in 2008 and "only" 26 million in 2009.

The BusinessWeek article also mentioned Apple's new production goals point to 40 to 45 million handsets between now and August of 2009, which fits into Munster's forecast nicely. Of course, supply is only half of the picture. Demand for the 3G depends on Apple and carriers fixing issues quickly, decent rate plans from carriers, and killer apps in the App Store.

As Apple rolls into large and previously untouched markets such as Russia and China, forges deals with other retailers such as Best Buy, and works with developers to bring hot applications to the App Store, we'll see how the forecasts compare with reality.

How accurate do you think the projections are? Share your opinion in a comment.

Tip of the Day

Holding the Command key (aka the Apple key) and pressing Tab will cycle through your open applications. It's easier to Cmd-Tab if you are Copy (Cmd-C) and Pasting (Cmd-V) to and from various applications.


Follow us on Twitter!
TUAW [Cafepress]

Sponsored Links

Featured Galleries

DNC Macs
Macworld 2008 Keynote
Macworld 2008 Build-up
Google Earth for iPhone
Podcaster
AT&T Navigator Road Test
Bento for iPhone 1.0
Scrabble for iPhone
Tom Bihn Checkpoint Flyer Briefcase
Apple Vanity Plates
Apple booth Macworld 07
WorldVoice Radio
Quickoffice for iPhone 1.1.1
Daylite 3.9 Review
DiscPainter
Mariner Calc for iPhone
2009CupertinoBus
Crash Bandicoot Nitro Kart 3D
MLB.com At Bat 2009
Macworld Expo 2007 show floor
Apple Texas Hold 'Em

 

More Apple Analysis

AOL Radio TUAW on Stitcher