Apple expects bulk of iPhones sales to come from Apple retail store network

At the meeting in Cupertino last week, Prudential analyst Jesse Tortora spoke with Apple CFO, Peter Oppenheimer, Apple Sr. VP of Retail, Ron Johnson, and Apple Sr. Director of Mac Product Marketing, Tom Bogart, Katie Marsal reports for AppleInsider.

“‘Apple said that the iPhone will be sold exclusively through its own stores, its website, and Cingular stores,’ Tortora wrote in a research note following the get-together. ‘Management expects the majority of the iPhone sales to occur in Apple stores, given that consumers will likely look to Apple to demonstrate the device’s features,'” Marsal reports.

More about Macs, iPods, iPhone, and Apple TV in the full article here.

Related articles:
Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
Prudential ups Apple Inc. estimates on strong Mac sales, margins – February 21, 2007

17 Comments

  1. Glad I won’t have to buy them in the Cingular store. Went there yesterday as my current phone (Nokia 6682) is crapping out. Only comparable phones they had in stock were the BB Pearl and the Blackjack. The sales guy was totally hyping the Blackjack because it’s 3G along with the fact that it runs Windows Mobile!!! Sweet! Then I said, “I’m a Mac user,” and he proceeded to say, “Oh, then you probably don’t know what that means.” What a dork. Actually, it means I don’t want the piece of cheap plastic crap and will limp along with my Nokia until the iPhone comes out. Here’s hoping it’s early.

  2. $20/hr? Which equates to roughly $40k/yr? This is what a “genius” gets paid?

    That is chump change for a living wage in Iowa, let alone in San Francisco. I won’t even start at how inappropriate that is for an IT related job that is central to Apple’s brick and mortar business.

    I’m a Mac fan, but I don’t see where this is decent money, except maybe in some third world African nations.

  3. InTheShelter:

    Dunno about you, but I read the statistics from the US Census Bureau for 2005 before posting. And lo and behold, the median household income in the US [2005] was $46,300 – so an income of $41,000 is not so far behind the median for the country. For your great state of Iowa it’s $43,042 [ie. below the national median] – so nothing to crow about there!

    In fact, in California it was $49,894. Again, $41,000 isn’t so far behind that, and for retail that’s reasonably healthy.

  4. I have always wondered if other apple store employes made less than cali, I visited an Apple Store near Miami and they were clueless about everything. And the guys around here tend to be experts, and yea, its prob cuz we are in silicon valley. Interesting numbers there Charlie. I had no idea, makes me feel better about how much I make, haha.

  5. You guys are forgetting that they can get stock options … in three years they will be buying 300k homes if they want ( cash! ) Apple retail is very well run top to bottom.
    Also once you have Apple on your resume employers fight over you.

  6. And now back to where we’re gonna buy iPhones:

    I can already see it coming – When you walk into a Cingular shop and ask for iPhone info. they’re gonna tell you its more expensive than a phone should be and shuffle you off to the LG, Nokia, etc. racks. These next two years are going to be a hard row to hoe for Apple and it’s new product. It really is a damn shame that they figured they had to be exclusive with a carrier like this. I believe Apple did the best that they could, but its a very weird and strange market, no doubt about it.

    Apple has always and without exception been trashed by retail partnerships. Arguably Circuit City came the closest to actually selling and promoting the Macintosh along with their other pc product lines, but that was no heavenly experience for Apple or its customers anyway. The fact that Apple is going to sell from its own stores is a clear indication that they have already learned from experience that they can not depend on Cingular to promote their product in any way, shape or form. I just want this two years to come and go so Apple can hopefully open up the iPhone to be what it really is, the smallest useable computer yet made and released to the general public.

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