I guess Scott Moritz is too ignorant, or too lazy, to allow for online sales from the Apple Store, where millions could be sold in mere minutes.

Or, perhaps online sales would completely topple the supply and demand chain and would go for tons of bad PR.

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Tommo_UK wrote:
I guess Scott Moritz is too ignorant, or too lazy, to allow for online sales from the Apple Store, where millions could be sold in mere minutes.

Well how exactly would you recommend he go about not being lazy and estimating something like that? At least with the B&M he can say there are X stores, if they can sell Y phones per hours that that gives us a total of Z phones for the night. How does he do that for online sales? Apple will simply sell out of whatever number they have on hand. I guess he should have flown to China and counted the number rolling off the assembly line. Man, he's so ignorant!

This type of estimating really doesn't do anybody any good. Apple is not going to sell two hundred of these things at every store on the first day. This device is too complicated a purchase to do that in that limited a time. People will 1) want to look at the device, 2) play with the device, 3) see what type of phone service options there are, and the list goes on. Many potential purchasers will wait out the initial reviews, and perhaps for a few software updates to catch initial software bugs. I fall into that camp.

Agreed Terrin. Nothing but speculation about something that everyone including the specualtor and author knows will not happen. Hype for the sake of hype.

Here's how Apple will activate those phones:
http://digg.com/apple/Apple_s_Plans_For_Instantly_Activating_All_Those_iPhones

"that could translate into an extra $0.02 per share, or an additional $2 million in profit"

Apple makes $216 million and only $2 mil shows up as profit???

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Anonymous wrote:
"that could translate into an extra $0.02 per share, or an additional $2 million in profit"

Apple makes $216 million and only $2 mil shows up as profit???

Apple has said that it will treat iPhone purchases as "subscriptions" and realize the income over a period of 24 months.

Author fails to mention that iPhones are tied to 2 year contract which means that even though the hardware can be realized the day of the sale, the real opportunity lies is the usage charges which Apple shares with AT&T. This revenue is cannot be recognized at the time of the sale but must be recognized as services are delivered. This will take time to develop but the potential impact to Apple's bottom line over time is where the real opportunity lies.

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Guest wrote:
Author fails to mention that iPhones are tied to 2 year contract which means that even though the hardware can be realized the day of the sale, the real opportunity lies is the usage charges which Apple shares with AT&T. This revenue is cannot be recognized at the time of the sale but must be recognized as services are delivered. This will take time to develop but the potential impact to Apple's bottom line over time is where the real opportunity lies.

Perhaps you didn't read the message above or haven't been following this, but Apple announced some time ago that they will realize the revenue on the iPhone and Apple TV hardware as a subscription over a 24-month period. It has nothing to do with the services, which are provided by ATT, not Apple.