The iPhone flops
Well, I guess the bottom is starting to fall for this over-priced, underpowered toy. AT&T reported subscriptions for the first two days and it only came it at a very disappointing 146k, well below analysts expectations of 500k (and one analyst company, I won’t bother to embarrass them, even mentioned 700k). Sure it’ll sell a lot, but it ain’t gonna “change” the world, much less “conquer” the mobile market.
Some comments:
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“Demand for the iPhone has had a “significant decline” in the past 10 days, according to CIBC World Markets. Apple introduced the iPhone, its first mobile device, in the U.S. on June 29. “We have noticed decent inventories at stores, and thin demand at best,” analyst Ittai Kidron wrote in a note. “Among the stores we visited, most visitors were not looking at the device, and only a very small subset bought it.” |
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Shares of Apple Inc fell 4 percent on Tuesday after AT&T Inc issued initial subscriber numbers for customers of Apple’s iPhone that were below analyst estimates.
Shares of Apple were off $5.70 to $138.02 on Nasdaq after AT&T, the exclusive service provider for iPhone, said it signed up 146,000 iPhone customers as subscribers in the first two days of iPhone sales, well below analyst estimates for sales. Pacific Crest analyst Andy Hargreaves said that while iPhone sales figures for coming months would be more telling than the first few days, AT&T’s number had disappointed investors as some analysts estimated sales “north of 500,000.” Hargreaves had himself estimated 400,000 iPhone sales for the first two days, he said. |