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News
UBS: iPhone Demand Remains Solid
Monday, August 20th, 2007 at 4:00 PM - by John Martellaro
UBS analyst Ben Reitzes has found that iPhone demand remains solid based on AT&T store surveys and discussions with Apple. Apple appears on track to meet its goal of one million iPhones sold by the end of Apple’s fourth fiscal quarter.
Mr. Reitzes was particularly interested in getting a reality check on the initial Phone hype, according to ZDNet.
"Our checks and discussions with Apple and AT&T store representatives continue to indicate relatively solid demand for the iPhone despite a significant moderation in excitement and hype from the June 29th launch. Our findings indicate that iPhone demand is tracking to some modest upside to our fiscal 4Q07 (September quarter) shipment estimate of 800,000 units. The limiting factors we find continue to be the phone’s high price point and AT&T service, which doesn’t function as reliably in some key cities like New York and Boston," Mr. Reitzes wrote.
Apple initial number for the iPhone sold into their channels, according to Apple, was 270,000. When added to the 800,000 estimate, that would easily meet Apple’s stated estimate of 1 million iPhones sold by the end of September.
Mr. Reitzes had some additional observations: He found no issues with iPhone returns, iPhones are "readily available," and complaints have been minor, most related to activation.
The analyst estimated that there are 3 iPhone sold at each AT&T store per day. [There are 1,800 U.S. AT&T stores.] He also expects retail distribution to expand to Best Buy soon.
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