Analyst: One million iPhone sales in just 74 days proves Apple’s $200 price cut was ‘strategic’

“Apple Inc. has sold its millionth iPhone less than three months after the device’s debut, allaying investor concerns that demand had slowed,” Bloomberg News reports.

“‘As far as dispelling the fears that the iPhone was off to a bad start, this should help that,’ said Gene Munster, an analyst at Piper Jaffray & Co. in Minneapolis,” Bloomberg reports. “Monday’s announcement shows the price cut was ‘strategic,’ he said. ‘It’s not anything wrong with the phone.'”

“The company may sell more than 1.1 million iPhones by Sept. 30, the end of its fourth quarter, said Munster, who rates the shares ‘outperform,'” Bloomberg reports.

Full article here.

22 Comments

  1. “Monday’s announcement shows the price cut was ‘strategic,’ he said. ‘It’s not anything wrong with the phone.'”

    Steve realizes that one of the the strengths of the Apple brand is in it’s customer loyalty. Not pissing people off is a good thing.

    Keep the people happy, and they’ll buy more Apple stuff. That and offer them $200 store credits…that also works like a charm.

    These analyst people are real geniuses…

  2. The Mac was a breakthrough product as well, but notice how it didn’t overtake the market (not directly, you could argue that a bad copy took over the market).

    Steve does not plan to repeat that mistake and they will relentlessly drive down the price of the iPhone over the next few years to push it out as far into the mainstream as they can.

    I can totally see a sub 200 iPhone in under 3 years, with more features than the current models. Apple has the chance to dominate the cell phone market in a way that its competitors can only dream of.

    Soon, they won’t know what hit them.

  3. …this should help that,’ said Gene Munster.

    This should crush that!

    Please show me any other phone, Razor, Chocolate, ect. and show me the first 3 months of sales.

    People forget easily that analists were first predicting 200,000 to 500,000 sold. If pray tell, 1 million were sold, that it would be the most succesfull electronics product launch ever.

    Go do a Lexisnexis search to see what they first said.
    Journalists are the first ones to revise history. “I didn’t say that.”

  4. Too many M$ cronies in the U.S. financial fiction cable networks. Apple could sell 1 million units in one hour and the “experts” will still manage to spin it as showing the doom of Apple. On the other hand M$ sells a handful of Zunes and it’s pure genious.

    I cannot wait until the M$ coffee table comes out. Even when they all crash with the red coffee ring of death…Kramer, Dvorak…all the usual retardation suspects will us how clever M$ is for making the “concept”.

    Just my $0.02

  5. Johnny Perspective:

    Agreed. It’s not just the 6,600 American dead… far from it.

    mac user 47:

    He was merely pointing out the cost of this ‘war’ in human lives – from a CBC story. You can put your aggression away now. Today is not the day to start rattling any more sabres. Thanks.

  6. easy there, Huey – if you bring politics to the board, don’t get snippy if someone disagrees. If people don’t “rattle sabers” when attacked on their own soil, what the hell good are they?

  7. The $200 price cut and the subsequent $100 “give-back” was planned all along. It’s brilliant. The relatively small but vocal group of “early adopters” was at first angry, but is now satisfied (and perhaps even more loyal to Apple), because Apple “listened” and decided to give $100 in store credit. The much much much larger group of potential customers who did not buy at $399 is happy about the lower price and feeling superior about not being “suckers”; they are even more likely to by at $399. And Apple… it got a huge amount of free media coverage for the $200 price cut “controversy” and collected almost one million times $200 extra during the first 60+ days of the iPhone (they are giving back at most $50 per iPhone). Everyone wins (especially Apple). I don’t see how Apple could have played it any better.

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