“Apple has lowered its projected shipments of iPhones from two million units to around 1-1.2 million units for the second fiscal quarter, which will end March 2008, the Chinese-language Economic Daily News (EDN) quoted sources at Apple’s handset component suppliers in Taiwan as indicating,” Steve Shen reports for DigiTimes.
“Sales of iPhones in Europe have been lower than expected, pushing Apple to slash its shipment projection for the second quarter, the EDN quoted the sources as saying,” Shen reports.
Full article here.
MacDailyNews Take: Predictably, Wall Street is further punishing Apple shares over this Chinese report: AAPL is currently down $5.14, or -3.70% to $133.93 in NASDAQ trading.
i’m waiting on new hardware — i went from a 30gb ipod w/video to a 16gb touch — that was painful enough. 8gb is not acceptable.
I saw this while working out at the gym this morning. While I couldn’t hear them speaking, it was pretty ridiculous how much they were drooling over/fetishizing the machine. I actually cracked up at one point!
Aw crap–that last post was supposed to go on the NBC TV article. Don’t know how it ended up here!
🙁
Latest news in from CBS: “Microsoft is expected to feature healthy results from across the technology giant’s various businesses when it posts second-quarter earnings after Thursday’s closing bell.”
First poster Lurker_PC has it right I think. Order fewer of the current model iPhone and clear remaining stock and then introduce the 3G iPhone model or iPhone with larger storage capacity… 16GB would be nice.
Take a 3 week break. Come back, and hopefully you will be funny again. Sorry man, it is getting old.
Bargain Basement…
Actually, your interpretation is a little off!
The problem is that Apple’s iPhone is competing against phone WHICH ARE BEING AWAY and where the manufacturers and opposing networks are desperately throwing money to counter the possibility of people switching handset and network.
That’ll work for as long as it takes Apple to introduce a 3G model with 16 or 32GB of storage, proper MMS support, full Bluetooth functionality and – arguably most importantly – an extensible platform via the iPhone/iPT SDK.
As each of these dominoes fall and the iPhone’s ease of use is compared to– for example – the Nokia N95 or the Blackberry (with that god-awful scroll-ball), iPhone will deliver another 10-20,000 sales per week.
And then there’s the elephant in the room that nobody at Vodafone or Orange want to acknowledge…what happens when Apple introduces the iPhone nano?
Apple spent $250 million developing the iPhone and it’s already recovered that cash. This quarter will pay for the marketing costs of the launch programme. After that, it’s a profitable program without even acknowledging the deferred income and the network operator commissions.
I am in the UK and I agree with many of the comments.
People I know are waiting for a £199 price point with 16Gb or RAM and 3G.
O2 are also not really pushing the device and are giving away the Nokia N95 free with a better contract.
£35 per month for 200 minutes and 200 texts is terrible!!!!
http://www.thefreemac.com
@MCCFR:
“Apple spent $250 million developing the iPhone and it’s already recovered that cash. “
Luv to see your math on that one…
Simon, I followed the link to your page and it doesn’t seem to render properly in Internet Explorer – bits of text hidden behind other text. I checked the source code and saw that you had created it in iWeb which is fine if you are aiming at an audience who will all be using Safari, but if you want your site to work in all browsers you might like to consider a WYSIWYG editor like Expressions Web or something similar.
RUMOR: Laura Goldman, is generating all this negative news about AAPL to redeem reputation as a great investment guru.
“I am putting a sell on Apple, the company that created the iPhone,” Laura Goldman, investment advisor, LSG Capital, May 21, 2007. AAPL closed at $111.98 that day.
JLB
IIRC, that was the figure quoted in the recent Wired article. Of course, it may be completely speculative, but – given the concealed complexity and the “secret squirrel” skunkworks way in which the whole thing was done (hardware team not seeing the software and vice-versa) – it sounds credible as a figure for a multi-year project to deliver a high-quality multi-function phone with a completely new human user interface.
without knowing the particulars nor attesting to the accuracy of the numbers….
$250M to develop
4M sold
$62.50 pure profit per iphone…. with margins at 30% and ATT service plan kickbacks…that seems plausible, doesn’t it?
So, MCCFR, just hot air you are blowing.
C´mon quit the FUD and making up stuff.
MCCFR: “what happens when Apple introduces the iPhone nano”
You got proof of this product, too?
Whatever. I’ll be buying the next revision, so add me to the future count.
caddisfly,
Not sure about that line of reasoning, but Apple’s R&D;item in the unaudited statements at the end of each financial year are as follows…
2003: $471 million
2004: $489
2005: $534
2006: $712 (bit of a hike)
2007: $782
I’d argue that the steady-state of Apple’s OS & hardware development R&D;is probably around $550 million at today’s prices, so my interpretation of those figures is that Apple coughed up about $400 million of extra R&D;between 01/10/05 and 30/09/07.
Some of that will be the move to Intel, and some of that will be the development of the ultra-mobile OS X and the iPhone. So it’s possibly somewhere between $150M and $250M, depending on which you think is the more complex.
Interestingly, Apple has already blown $246 million on R&D;this year in the quarter just reported which suggests that there is still a whole load of stuff going on at Area 95014.
JLB,
What is your problem?? Is the figure to high or too low?
Quoting an article which quotes an insider is hardly FUD (although I apologise for getting the figure wrong, it’s actually $150 million in the article). Nor is the speculation that there will be a family of iPhones to meet the needs of various market segments.
I also can’t prove the existence of the so-called Aurora spy-plane, but something makes those pretty doughnuts on a rope above Southern California as well as all those sonic booms and it certainly isn’t an SR-71 Blackbird, but presumably you’d need photos of the pilot standing next to the plane and then some video of it taking off. If I get some time to go to that weird airbase in Scotland where it allegedly refuels, I’ll try and help you out.
IMHO European prospective iPhone buyers may be holding off till roaming charges accross Europe have stabilized, such that one doesn’t run into unexpected charges when crossing national borders. After all European countries are relatively small.
As soon as this is realized, watch iPhone sales in Europe go through the roof!
Apple lowers iPhone shipment projection for fiscal 2Q08
Over predicted the market, slashed the price, couldn’t sell remaining inventory
THUS
no new iPhone announcement at MacWorld.
*cries*
Perspective perspective perspective… And while I’m thinking in triplets here’s something to think about:
There’s three places you’ll never get a useful perspective: 1. A politician; 2. A preacher; 3. A financial news reporter with an agenda.
On the math thing: If Apple has sold 2 million phones by now (haven’t they sold more than that globally by now?), at [rounding] $400 bucks a pop, that comes out to something like $800,000,000. So yeah, if Apple spent $250,000,000 on development, and if they’ve sold at least 2,000,000 phones then I think they’ve covered there costs minus advertising, delivery and some other significant expenses.
3G is pointless.
i’d rather have another 2-3 hours extra battery life on my iPhone than 3g. in the future, we’ll all be on wifi, i think they should add wireless N instead because of better reception/range otherwise this phone is perfect.
soon in a few years wifi hotspots will grow so big that everyone will be able to just walk anywhere sit-down, and be able to access full broadband internet, not crappy 3g or 4g or whatever comes along.
Simple:
1) The limit of 2 units per buyer has put a crimp in the gray “export” market [prices are up 30-50% in 3rd world countries];
2) As the release date in those markets nears, buyers are adopting a wait and see-the-plan attitude;
3) Expectations of an update with larger storage increasing;
4) A dose of reality: Look! The plen…the plen!
5) Touch.