Analyst Sees Up to One Million iPhone Gift Cards for Holidays

| Apple Stock Watch

Kaufman Bros. analyst Shaw Wu told clients in a research note Wednesday that Apple could sell as many as as one million iPhone gift cards for the holiday season. Mr. Wu is estimating that Apple will sell some six million iPhones during the quarter, down from the September quarter, but still higher than 2007.

"We think there is strong reception of AAPL's new iPhone 3G Gift Card program, where the process of giving the iPhone as a gift is greatly simplified without the need for activation and personal information," Mr. Wu wrote. "We estimate several hundred thousand to one million units could be impacted."

That said, he also noted that much, if not most, of the sales of these phones won't be registered by Apple until the March quarter, as Apple can not recognize the sale until the phone is purchased and activated. Mr. Wu believes that, "the risk here is that the customer will likely activate post-Christmas."

Apple traded up and down throughout the day, Thursday, but ended the day lower at US$95.00 per share, down $3.21 (-3.27%), on moderate volume of 37.2 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

Sign Up for the Newsletter

Join the TMO Express Daily Newsletter to get the latest Mac headlines in your e-mail every weekday.

Comments

Gift Certificate

OK, now it has been a month passed and does your prediction was came out finally? I think and if I am not wrong, gift cards are more popular in western countries, right? But here in India, people generally use gift certificate for various occasions like birthdays, wedding, anniversary, and in special festive season like christmas, diwali, new year, the graph really goes high.

Rahul D.

In India, there is not such concept of swapping gift cards. Generally in India people send gift certificate on occasions like birthday, wedding, anniversary, etc. I think swapping of gift cards is more popular in USA and Canada. is it?

Log-in to comment