Print 32 comment(s) - last by degobah77.. on Dec 19 at 11:00 AM

Apple offers official candy sales figures for the first time

The iPhone 5 went on sale in China on December 14. Apple announced over the weekend that in only three days after that launch it has sold 2 million iPhone 5 smartphones. Apple also reasserted that the iPhone 5 would be available in more than 100 countries by the end of December marking the fastest iPhone rollout ever.

“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,” said Tim Cook, Apple’s CEO. “China is a very important market for us and customers there cannot wait to get their hands on Apple products.”

Despite the successful rollout, Apple shares fell 3.8% in trading on Friday after the iPhone 5 debuted in China. Citi Research downgraded Apple stock from "buy" to "neutral" and lowered Apple's price target from $675 to $575.
Citi Research blamed diminishing hype for the iPhone 5 and improving competition in the smartphone market. 

Sources: Apple, Reuters

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By Dr of crap on 12/17/12, Rating: 0
By max_payne on 12/17/2012 12:28:45 PM , Rating: 2
I agree with you on that. In what way is this a tech news ? The only way I can see it, it's a paid advertisement for Apple.
Quick Note : Who care ?

By degobah77 on 12/17/12, Rating: 0
By Uncle on 12/17/2012 3:44:09 PM , Rating: 2
This takes me back to the early seventies, when Timex watches were selling in N America for $10. When I was in Germany the watches were selling for $50 and higher. Swiss made watches were cheaper in Germany then Timex but more expensive in N America. That taught me a valuable lesson in Market Media Hype Advertising. Advertising Media Hype is all bullsh*t depending in what part of the world you live in. The Chinese are just coming out of the stone age and are going to be more dazzled by the glitz and glamor of the Media. It shouldn't take them to long to figure out the fluff from real. In the seventies we didn't have the net to make comparisons with the rest of the world, so the media ruled the roost. The market they go after is the young impressionable minds. Remember when the advertisers claimed that Ads didn't affect the young Saturday TV watchers. Well if it doesn't work their blowing billions every year. You can't get away from advertisers unless you go out in the bush fishing. Just stay away from other campers who use cell phones in case you see an apple logo.:)

By degobah77 on 12/19/2012 11:00:33 AM , Rating: 2
Apple is not cool. Owning their products is not cool, either.

I used to own a Starter jacket back in the day, and thought Vanilla Ice was cool, too.

I used to really care about how many records Milli Vanilli was selling. They were raking in the profits!

By name99 on 12/17/2012 2:23:23 PM , Rating: 2
Oh don't be a child.

These sales figures matter because
(a) The tech world, ULTIMATELY, lives off money. If no-one wants to buy your product you die, no matter how cool your technology. Look at DEC Alpha. Look at Sun. Look at SGI. A large part of the future agenda of tech will be determined by the companies with money.

(b) This is about China, and China is clearly a rapidly changing place that will affect the rest of the world. The scale of the launch tells us something about the size of the population in China that is both interested in and can afford "middle-class" high tech. This in turns gives us a feel for the size of the population that will be inventing future tech.
Huawei, for example, made a large number of submissions of ideas for the h.265 standard --- were you aware of that? Or in your imagination, is h.265 basically an American invention to which a few Europeans make a few minor modifications?

By Dr of crap on 12/17/2012 2:48:24 PM , Rating: 2
I understand you must sell your product.
We do not NEED to know that the iphone sold X amount the first few days.

If it salls 200,000 copies or 100 millions copies, it made money, some wanted it right now. Wanting it right now DOES NOT make you money for the lang haul. If Apple sold 10 million copies in the first 2 weeks and then sold nothing else would that be good - nope!

Sales over the lifetime of the product matter way more.

Don't know, don't care about - h.265 basically an American invention.

By name99 on 12/17/2012 4:52:39 PM , Rating: 2
Once again, don't be a child.
We have AMPLE experience with the sales pattern of both new Apple devices and new computing devices, and that experience allows us to do a reasonable job of extrapolation from initial sales to total sales.
(The same is also, by the way, true for most movies, although there the data is noisier.)

By Dr of crap on 12/18/2012 8:19:02 AM , Rating: 2
"...and that experience allows us to do a reasonable job of extrapolation from initial sales to total sales."

And I agree - so why must this site post the sales numebrs so readily? Like it means something?

It's basicly an ad FOR the company - right?

IF you don't get it - sorry for you!

And don't call me child again.

By drycrust3 on 12/17/2012 6:37:14 PM , Rating: 2
People like a means of being able to compare one object with another. For example, which car has a better safety rating, or which computer is better for playing games on, or which fighter plane is faster, etc. Sales figures are a means of gauging the popularity of one item against another. The figures aren't strictly accurate, but they can be used as a guide.
In this case, any figure in the millions means a good sales distribution network and a market that can afford the item.

By dj LiTh on 12/17/2012 10:02:20 AM , Rating: 1
Would it kill you to put an apostrophe.... here i thought this article was about a chinese knockoff of the iphone 5s, not about iphone 5's

RE: 5s?
By hexxthalion on 12/17/2012 10:06:06 AM , Rating: 3
actually it's plural of iPhone5 so there should not be an apostrophe

RE: 5s?
By dj LiTh on 12/17/2012 10:09:47 AM , Rating: 2
So you think that iphone 5ss is correct then when talking about the next generation of iphone?

RE: 5s?
By hexxthalion on 12/17/2012 10:11:36 AM , Rating: 2
it would be iPhone 5Ss ;)

RE: 5s?
By Shadowself on 12/17/2012 12:29:35 PM , Rating: 2
Classically (English usage back a few decades or more) the "proper" way to list plurals of numbers was with an " 's ". Yes, it was with an apostrophe. Every other variant was considered "improper".

Starting in the late '70s or early '80s the standard, "proper" form changed to the apostrophe being optional.

More recently common usage without the apostrophe seems to be winning out. I'd expect within the next decade or so that the standards (Chicago Manual of Style, Harbrace, Strunk & White, etc.) will all agree that the "proper" form will be without the apostrophe. Until the, either with or without is "proper".

RE: 5s?
By dj LiTh on 12/17/2012 12:34:19 PM , Rating: 2
Ahhh, i see the article was edited. I'm happy now.

By Tony Swash on 12/17/2012 12:00:36 PM , Rating: 2
Apple sold over 5 million iPhone 5 units in the weekend of its launch in the U.S. and 8 other developed markets. An estimated 2 million iPhone 5 units were sold at U.S. carriers in the first 10 days of launch or 1.0% penetration of a post-paid subscriber base of around 200 million. In a shorter time span of just 3 days, Apple sold over 2 million units at China Unicom and China Telecom, a 1.5% penetration of a 130 million 3G subscriber base. This suggests potential for subscriber penetration in China could be similar to that of developed countries despite per capita GDP that is less than 1/5 of the U.S.

As usual if you want to see a data based analysis Horace Dediu at Asymco is your man.

In this post Horace places the announced 2 million iPhone sales in a weekend in context.

Amongst several interesting points Horace points out that the first weekend sales of the iPhone 5 in China exceed the first weekend sales of the iPhone 4 in it's initial launch countries of US, France, Germany, United Kingdom and Japan.

RE: Context
By Dr of crap on 12/17/2012 12:04:56 PM , Rating: 2
And.... this means what?

RE: Context
By Tony Swash on 12/17/2012 12:27:44 PM , Rating: 1
I thought it was obvious what it meant but to spell it out for you: It means the iPhone 5 launch in China was very, very strong and that Apple will continue to grow it's business in China very strongly over the next year.

Another piece of context. China is a disaster for Google. Almost all Android handsets sold are both low end and stripped of Google services including Google Play, and there numerous and incompatible apps stores which makes life very difficult for developers. This is an interesting article on this issue.

RE: Context
By Dr of crap on 12/17/12, Rating: 0
RE: Context
By Tony Swash on 12/17/12, Rating: 0
RE: Context
By xti on 12/17/2012 4:29:16 PM , Rating: 2
this post was almost as boring as the DT article.

RE: Context
By Tony Swash on 12/17/2012 6:15:33 PM , Rating: 2
this post was almost as boring as the DT article

Thanks for sharing that cutting insight. How long did it take to compose?

RE: Context
By erple2 on 12/17/2012 10:07:25 PM , Rating: 2
Hrm. That post was also one of Tony's only posts that I can remember that posted facts, not opinions (and not being an Apple fan, I usually find his opinions to be "completely wrong").

While I shudder to say it, good job, Tony. Keep it up.

Important market?
By simsony on 12/17/2012 7:50:04 PM , Rating: 2
Why does Apple think the Chinese market is important? I don't see how this helps them strategically.

The phones will be jailbroken, and the App Store will not see much, if any sales, and thus developers are not going to see much benefit. It is likely that there will be home brew iOS builds, just like other phones there.

I'm pretty sure Apple does not even support Chinese standards like WAPI for Wifi.

Apple won't get far using lawyers and the courts there either.

Is it important just for the stock market and American analysts? I wonder if Hong Kong numbers are being included for marketing reasons.

RE: Important market?
By erple2 on 12/17/2012 10:09:47 PM , Rating: 2
Maybe, but Apple still makes pretty good profits on each sale of hardware, so that's pretty good too. I don't know if that's the case with the iPhone 5, but that was certainly the case with previous iterations of the iPhone.

RE: Important market?
By TakinYourPoints on 12/17/2012 11:17:40 PM , Rating: 2
Apple doesn't really care that much about jailbroken phones because their income from iTunes and the App Store is peanuts. It is a drop in the bucket compared to every other product and service that they have.

They make money selling hardware. Selling movies, music, apps, etc, is not very profitable for Apple, Amazon, Microsoft, Google, anybody, because the lion's share of that sale goes to publishers and content creators. In the end the profit margins to hardware companies are only around 10%.

The people that get hurt the most by jailbreaking are developers, since piracy is one of the primary uses of sideloading apps. Losing app store income doesn't harm Apple very much at all, they make money from the phone itself.

Of course, the App Store indirectly makes money for Apple since it encourages people to buy into their hardware ecosystem and stay in it. Having such a great selection of applications adds value to the hardware, but in terms of direct profit it is all about the hardware to Apple

Spare parts supply
By Schadenfroh on 12/17/2012 10:17:40 AM , Rating: 2
In other news, the price of a kidney on the blackmarket is dropping fast!

RE: Spare parts supply
By ProZach on 12/18/2012 1:32:20 AM , Rating: 2
Beat me to it, how to follow-up?

"After my trading my brain for an iFone55, me decision just made that much more better sense!"

Or, given my last experience with an acquaintance who recently bought one:

"After I traded my balls for an iFone5 I still am not getting any action, but the iFone is cooler to play with at work."

Apple Stock
By MadMan007 on 12/17/2012 10:41:54 AM , Rating: 3
Man, talk about a pump and dump!

oh these anal-ysts
By hexxthalion on 12/17/2012 9:58:42 AM , Rating: 1
they should just give up, bloody morons. they're always wrong and they don't get it

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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