Analyst: iPhone Supply Key to Early Success
Analyst: iPhone Supply Key to Early Success
by , 8:20 AM EDT, June 14th, 2007
Apple's combination iPod and smartphone, the iPhone, is scheduled to debut at 6p.m. on June 29. The big question isn't whether or not consumers want it, but whether or not Apple will be able to meet the demand, according to Piper Jaffray analyst Gene Munster.
"Apple's production ramp for the June 29 launch of the iPhone remains one of the biggest questions surrounding the event," he said.
Mr. Munster expects Apple will have up to 10,000 units on hand at its largest flagship stores and about a million units available throughout its retail shops on launch day. Should Apple be able to maintain an adequate iPhone supply, the company could beat Mr. Munster's 200,000 sold during the last two days of the June quarter prediction.
Mr. Munster added "We also expect Apple to leverage its retail locations as 'hubs' for the evening launch event, hosting parties with DJs at some of the stores to create buzz on the 29th."
The iPhone's touchscreen makes up another unknown for the near-term success of the product. If the touchscreen performs below expectations, consumers will be less likely to make the purchase.
One small vote of confidence for Apple's touchscreen is already in. The Wall Street Journal's Walt Mossberg has been using a review unit for several days, and has already noted that the display works better than he expected it to. Mr. Mossberg's early comments bode well for the device since many consumers and investors are closely monitoring his iPhone impressions.
Mr. Munster is maintaining his "Outperform" rating and US$160 target price for Apple's stock. Apple is currently trading in the pre-market at $117.75, up 0.25 (0.21%).
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
Observer Comments
Thu Jun 14, 2007 10:04 am Subject: Ordering iphone from Apple Store
I'm afraid that nobody here can answer that question at the moment.
Am I the only one who thinks the idea of Apple having 10000+ iPhones stocked at a single store is absolutely rediculous? I mean, don't get me wrong, I'd love it because that would mean 2 things:
1. It would be easy for me to get one.
2. It would result in many eBay jerks losing money.
But it just seems like wishful thinking to me that Apple would have over 1 millions units shipped for the 29th.
Thu Jun 14, 2007 11:13 am Subject: I love the enthusiasm
I love the enthusiasm from people who have never actually used the product, but I can forgive that because Apple generally makes good stuff. Oh and just ignore all that advice about never buying a 1G Apple product. Surely iPhone will be an exception, like the MacBook and MacBook Pro were. Oh wait.
Plus you have no idea what AT&T is going to charge for a data rate, but given their current pricing, it's going to be some form of grab your ankles, leave your wallet on the table, and we'll tell you when we've had enough. The multi-year iPhone monopoly gives them absolutely no reason not to gouge every one of the overeager beavers.
AT&T execs have more dollar signs in their eyes than iPhone enthusiasts have stars in theirs.
The AT&T data plans are not that bad in comparison with the competition. Since there will be no subsidy on the phone, there is a very real chance there will be a discount on the service. I will be one of those people on the 29th buying the iPhone for my wife. I know the horror stories about rev.1 Apple products, but I am still using a rev.1 12" PB. Works as well today as the day I took it out of the box. I agree with Biff about 10,000 iPhones in inventory at the larger stores. Assuming the iPhone is roughly the same size as a 5G iPod's, imagine the storage space that would occupy at an Apple store. They rely on overnite shipping to keep the stores stocked, not massive inventory.
QuoteWow that really makes you think. Hehe. Don't worry man, I'm sure they'll eventually make a cheaper iPhone just like they did with the iPods. You can get one then.luomat wrote:
I love the enthusiasm from people who have never actually used the product, but I can forgive that because Apple generally makes good stuff. Oh and just ignore all that advice about never buying a 1G Apple product. Surely iPhone will be an exception, like the MacBook and MacBook Pro were. Oh wait.
Plus you have no idea what AT&T is going to charge for a data rate, but given their current pricing, it's going to be some form of grab your ankles, leave your wallet on the table, and we'll tell you when we've had enough. The multi-year iPhone monopoly gives them absolutely no reason not to gouge every one of the overeager beavers.
AT&T execs have more dollar signs in their eyes than iPhone enthusiasts have stars in theirs.
Quoteluomat wrote:
I love the enthusiasm from people who have never actually used the product, but I can forgive that because Apple generally makes good stuff. Oh and just ignore all that advice about never buying a 1G Apple product. Surely iPhone will be an exception, like the MacBook and MacBook Pro were. Oh wait.
Plus you have no idea what AT&T is going to charge for a data rate, but given their current pricing, it's going to be some form of grab your ankles, leave your wallet on the table, and we'll tell you when we've had enough. The multi-year iPhone monopoly gives them absolutely no reason not to gouge every one of the overeager beavers.
I was told by an AT&T this weekend that the data rates will likely be the same as their current options, ie, no differences just because its an iPhone. He suggested to anticipate about $80 a month minimum for a 450min./month plan plus the necessary data services plan. I believe the data plans start at $39/month. And the 450minutes per month voice plan is the lowest level you can buy into.
QuoteGuest wrote:
I was told by an AT&T this weekend that the data rates will likely be the same as their current options, ie, no differences just because its an iPhone. He suggested to anticipate about $80 a month minimum for a 450min./month plan plus the necessary data services plan. I believe the data plans start at $39/month. And the 450minutes per month voice plan is the lowest level you can buy into.
I forsee many getting the cheapest plan possible and relying solely on WiFi for internet access.
QuoteGuest wrote:Quoteluomat wrote:
I love the enthusiasm from people who have never actually used the product, but I can forgive that because Apple generally makes good stuff. Oh and just ignore all that advice about never buying a 1G Apple product. Surely iPhone will be an exception, like the MacBook and MacBook Pro were. Oh wait.
Plus you have no idea what AT&T is going to charge for a data rate, but given their current pricing, it's going to be some form of grab your ankles, leave your wallet on the table, and we'll tell you when we've had enough. The multi-year iPhone monopoly gives them absolutely no reason not to gouge every one of the overeager beavers.
I was told by an AT&T this weekend that the data rates will likely be the same as their current options, ie, no differences just because its an iPhone. He suggested to anticipate about $80 a month minimum for a 450min./month plan plus the necessary data services plan. I believe the data plans start at $39/month. And the 450minutes per month voice plan is the lowest level you can buy into.
The strange thing is that widows smart phones only have to pay half that much.
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