Apple Inc had sold 1.7 million units of the iPhone 4 worldwide by Saturday, its most successful product launch yet, the company said on Monday.
Sales of the touchscreen smartphone, which competes with devices from Nokia, Research In Motion and Motorola, surpassed some analysts’ expectations, as well as those of Apple itself, which has been having trouble keeping up with demand.
In a statement, Apple CEO Steve Jobs apologized to “customers who were turned away” because the company did not have enough supplies of the iPhone 4.
Shares of AT&T Inc, the exclusive US provider for the iPhone, rose as much as 1.5 percent after the news as analysts said it meant more customers than expected committed to use the No. 2 US mobile provider’s service for another two years.
This is seen as more crucial than ever because AT&T is widely predicted to give up its exclusive rights to the phone in the next year, when Apple is expected to add Verizon Wireless, the biggest US mobile operator, as a service provider.
BTIG analyst Walter Piecyk estimated that about 500,000 of the iPhone 4 sales were to AT&T users.
“This could be the last exclusive iPhone AT&T gets so it’s therefore the most important one ... It certainly was a huge success for AT&T,” Piecyk said.
The iPhone 4, which boasts video chat and a longer battery life, was launched last week, with fans lining up outside stores overnight by the hundreds.
Hudson Square Research analyst Daniel Ernst said the 1.7 million number likely included preorders, which began on June 15. It was higher than his estimate.
“No single smartphone model has been this successful,” he said.
BMO Capital Markets analyst Keith Bachman said the early sales figures suggest total iPhone units of 8.5 million to 9.2 million in the quarter that ended on June 26, which is above his forecast.
For the current quarter, Bachman estimated iPhone sales of 10.2 million units, rising to 12.2 million for the December quarter.
The iPhone has transformed Apple into one of the world’s leading mobile phone companies, boosting its margins in the process. The company has sold more than 50 million iPhones since the device debuted in 2007.
ISuppli on Monday issued its closely watched bill of materials analysis for the new iPhone. The research group estimated that the device’s components cost US$187.51.
iSuppli’s materials estimate for the previous-generation iPhone was US$170.80.
The most expensive component in the new iPhone is the display at US$28.50, according to the analysis. The part is believed to be supplied by LG Display.
“The BOM [bill of materials] of the fourth-generation model closely aligns with those of previous iPhones,” iSuppli analyst Kevin Keller wrote in a release.
“With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve,” he said.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS