Apple: 1 million iPhones sold

It seems like only yesterday that Apple had sold its first 270,000 iPhones--not a bad tally for just a little bit more than the first day on the market.

(Credit: Apple)

Monday morning, a little more than two months after the much-lusted-after gadget went on sale, Apple said in a brief press release that it had sold its 1 millionth iPhone.

"One million iPhones in 74 days," Apple CEO Steve Jobs exulted in a press release. "It took almost two years to achieve this milestone with iPod."

Last week, Jobs unveiled the new iPod Touch, which mimics the look and behavior of the iPhone. He also ran into a buzzsaw of criticism by cutting the price of the iPhone by $200 so soon after long lines of early adopters plopped down a big chunk of change to be the first on the block with the gadget.

The price cut--the 8GB model now costs $399--is intended to boost sales of the iPhone during the upcoming holiday sales season. Two days after announcing the new pricing, Jobs offered an apology to the first wave of buyers, along with a $100 store credit.

"We can't wait to get this revolutionary product into the hands of even more customers this holiday season," Jobs said in Monday's press release.

Just how many hands the iPhone actually is in at this point is a little unclear, Apple's ballyhooing of 1 million sold notwithstanding. If Apple sold 270,000 or so in the waning hours of June, as it claimed, and then 220,000 in July, as market research iSuppli reported last week, that's 490,000 units. Which means the company would have needed a sales surge of more than a half-million iPhones in the six weeks or so since August 1.

[The_Decider]

Sold or shipped?

Anyone can regurgitate press releases, how about finding out the truth?

[Penguinisto]

I'm thinking "sold"

from the blurb:<br /><br />"[i]Apple said in a brief press release that it had sold its 1 <br />millionth iPhone.[/i]"<br /><br />Considering the word "sold" is the only descriptor throughout, I <br />suspect we can safely assume that (unless CNET screwed up) <br />Apple has sold 1m of the critters.<br /><br />/P

[MacVet]

Moot point

Whether they have been actually sold to end users, or shipped to Apple and AT&#38;T stores is probably moot. Even if the latter, they will likely be sold to end-users forthwith. If the former, then their goal was reached a few weeks early. <br /><br />Two points to keep in mind:<br /><br />1) Apple is NOT known for "stuffing" the channel (a la Microsoft-- check out the stocks of {dust-covered} Zunes anywhere you like).<br /><br />2) Industry analysts constantly report that Apple tends to project conservatively.

[House_of_Mirth]

'The truth?'

Are you suggesting that a such a large portion of the 1M units sold <br />will actually ship in six months, or something like that, so that <br />Apple's figure is somehow not 'the truth?' Perhaps you haven't <br />heard, but if you order an iPhone today from apple.com, you could <br />have it in your hands within a week.

[Penguinisto]

Not bad - not bad at all...

...1m high-end smartphones in less than what fits into a fiscal <br />quarter.<br /><br />I know it'll sound weird, but I wonder how many Motorola Razr's <br />had sold during it's first 90 days, when they were selling at <br />about the same price ($500 or so?) and contract snag?<br /><br />/P

[Vegaman_Dan]

A bit higher

Similar price range, but higher sales according to Google searches. I know that basing it on news searches in Google is not very good, but it's all that is available.<br /><br />Of course, how many phones were activated? Unless there are 1 million active in use phones as of now, then those numbers are meaningless. You could just as easily say that while Apple sold 1 million phones, X number of hundreds of thousands of people didn't want them.<br /><br />See what I mean? Number sold is useless. Number in service is all that matters. Apple can easily ship or sell millions to stores, but unless end users actually use them, then those numbers are utterly useless.

[DrtyDogg]

RAZR

That phone got off to a slow start. It sold about 750,000 in it's first Quarter. It took off after that though and had sold well over 20M in the next year.

[SteenMachine]

There seems to be some doubt...

The last paragraph seems to question the figure. Why?<br /><br />Apple sold 270K in the last two days of 2Q07. That figure is reliable. <br /><br />The 220K from iSuppli is a prediction, and we have NO idea what the variability is in that estimate. The actual number could be as high as 400K in July. Most iPhone prognostications have been way off, from what I've seen. <br /><br />The $200 price cut probably cause a spike over the last weekend. And back-to-school/college season was last month. These were probably a good last six weeks for Apple / ATT. <br /><br />1M in 74 days? Absolutely...and Kudos to Apple.

[jmdunys]

Comments like this make me sick

Apple are lying! This is what you are saying with your sniggering <br />doubting comments.<br />You're such a knowledgeable man, I am in wonder!!!<br /><br />How many Zunes were sold EVEN in the same time frame? How <br />many high end mobile of the same serie? Are you going to <br />question them all?<br /><br />What's you agenda?

[Vegaman_Dan]

I think the agenda is the truth

I'm not sure how Zune (a failed product in my opinion) relates outside the attempt to make this into a OS holy war, so let's toss that one aside as irrelevant.<br /><br />Apple has a history of counting units sent to stores for inventory as 'sold'. It's true- you go to a Fry's store and their Apple inventory is already paid for by Fry's. Apple can count that as a sale.<br /><br />Now what happens if Fry's doesn't sell the units or they sit on the shelf? If AT&#38;T takes in a big shipment but hasn't sold the units yet, can you really honestly call that a sale? <br /><br />For me, it only matters how many units make it into the hands of consumers and are actually in use. That is the definition of success to me. Unsold inventory doesn't count in my opinion.

[Vegaman_Dan]

Only last week it was 400,000 units

I think they must be pulling numbers out of the air. Last week iSuppli said they had sold 400,000 units. This week Apple says they sold 1 million phones. AT&#38;T reports yet different numbers.<br /><br />I might believe 1 million phones shipped, but somehow I doubt they sold 600,000 phones in less than a week.<br /><br />Would Apple please pick one set of numbers and stick to it? Their press releases are at odds with even their business partner AT&#38;T and come nowhere near iSuppli's numbers.<br /><br />Pick one set of numbers!

[sd1004]

iPhone Numbers

It might help to stick to one source and understand where those <br />numbers are coming from. Apple reported 270,000 iPhones <br />sold in their last quarter (basically June 29 and 30th) financial <br />reports. AT&#38;T reported 225,000 (or thereabouts) for the same <br />period, but those were *activated* phones, not simply sold. <br />AT&#38;T have not stated any numbers since. iSuppli has no hard <br />numbers, they glean information from polls and interpolate. As <br />well, I believe they do not account for on-line sales (i.e. through <br />Apple's online Apple Store). I'd be inclined to believe Apple's <br />number, for the simple reason they have to be accountable for <br />them in their next financial filings (I believe they are separating <br />iPhone and iPod revenue, so it would be easy to tell if they are <br />cooking the books). I'm also inclined to believe these are <br />actually *sold* iPhones, not simply shipped, I'd think the <br />numbers would actually be larger if that were the case - they <br />could just flood their own stores, which, once again, one could <br />easily tell by looking at the financial results for their stores.

[duggerdm]

A graduate of the Bush school of math and propaganda.

Job's must have gone to the Bush school of math and propaganda. Am I the only one that saw the original Apple sales forecast for the first quarter of the iPhone as 4.5 million. They are way below this level - almost half of what was projected. If they were above as this article states why would they lower the price. Job's may reinvent the truth, but he isn't an idiot and he wouldn't lower the price if demand were above expectations. If he did his board should have him committed.

[bob donut]

Incorrect

Apple did not state that they expected 4.5 million iPhones in the first quarter. They projected 1 million iPhones by September 30. The 4.5 million projection was made by an independent Wall Street analyst, and it was up to this year's end, so it includes the Christmas season.

[Nodack]

4.5 million?

Yes you are the only one to remember 4.5 million. Please link <br />the site that shows that statement, otherwise you are just talking <br />gibberish. 1,000,000 phones sold by the end of September was <br />one of the well publicised goals from the start.

[mattmoo]

Surely Apple are selling units to AT&T?

I am bemused by these numbers. Even more bemused by the fact that so many seemingly intelligent people making comments dont understand the number either.<br /><br />If i was an Apple stockholder i would be worried. Have these 1million units been paid for? i guess thats what sold means in this day and age right? Or can i just make a load of product and put it in a shop and say they are sold to keep my investors happy? Surely if i did, my ruse would soon come out. Unless of course i dropped the price and they eventually did sell before i had to report my figures!<br /><br />I can only assume that Apple are selling units to AT&#38;T.

[drhamad]

What Apple can count as sold

Apple CAN count shipments to AT&#38;T stores as sales (I don't know if <br />they have here, but I'd bet they did). That being said, AT&#38;T stores <br />don't generally keep huge stocks on hand - they'll keep enough on <br />hand to wait for the next shipment, and that's all, if they can help <br />it. Apple CANNOT count shipments to its own stores (or online <br />stores) as sales. So yes, the 1m figure is probably higher than the <br />actual sales figure, but it probably is not grossly out of line with it. <br />If it's 900k iPhones actually sold, that's still a lot.

[regulator1956]

GAAP

People, sit back and relax.<br /><br />Jobs said 1 million "sold". The only number that matters must be based off GAAP - Generally Accepted Accounting Principals.<br /><br />Due to Sarbanes-Oxley laws, if the CEO of a public company reports "sold" publicly, that number must conform to GAAP or the CEO is subject to fines, prison or both.<br /><br />Apple didn't state how many were activated or in consumer hands, just "sold." Once they're invoiced and shipped, they're "sold" - whether it's Best Buy, AT&#38;T or shipped by the Apple on-line store. Sending them to sit on the shelves of a company-owned Apple Store doesn't count under GAAP until they're sold to a consumer.<br /><br />(Yes, there could be later returns by AT&#38;T, Best Buy and others, but if huge numbers came back, Jobs would have legal issues.)

[johnqh]

There is no channel to stuff

Some people are accusing Apple of stuffing the channels.<br /><br />Well, Apple sells iPhone at Apple online store, Apple store, and AT&#38;T stores. So, IF Apple were to stuff the channel, AT&#38;T stores are the only ones they could stuff.<br /><br />There are about 1800 AT&#38;T stores. Let's say the 1M "sold" number include 21 per AT&#38;T store as inventory (1 week supply as specified in the iSuppli report), that's what, about 38000 units?<br /><br />Big deal. 3.8% of the 1M number, which would be erased in 3 days with the sales rate BEFORE the price cut.

[bob donut]

False comparison

You're creating a false comparison by comparing three different sources. Apple's numbers are the only reliable ones, because, as the other poster in this thread stated, they are legally accountable for posting accurate ones.<br /><br />iSuppli is rumors and conjecture. An estimate at best. And AT&#38;T's numbers will always trail Apples due to delayed activations, reselling, and hacking of iPhones

[bob donut]

Sorry

I meant for this comment to go under the thread titled, "Only last week it was 400,000 units"

[Dieds]

Still not enough

2 months does not make for an "early adopter." It does make us (former) Apple fans furious, though. And I'd prefer $100 in case vs. an "in-store" credit. Make that $200 in cash. Thanks for nothing, Steve Jobs.

[dba7]

entitlement

There is a price to pay for being the first kid on the block with a new cool device. You paid for it and got it. So you are not ENTITLED to get $200 backup.<br /><br />imho

[San Diego Johnny]

Stop Your Whining

You paid a premium for being the "first kid on the block," stop whining and get a pair. You were like that poseur who sat in front of me at the ballgame, making everyone in back of them have to strain to see the field because he was playing with his new toy and showing it off. Hey wait a minute, was that you?

[Nodack]

1,000,000

1,000,000 iPhones sold. <br /><br />Everybody that touches this device has fallen in love with it and <br />1,000,000 sold in less than three months shows just how <br />popular it has become in such a short time. Now with the price <br />drop and a whole new line of iPods just in time for the Christmas <br />rush, this is going to be the biggest season Apple has ever had.<br /><br />Those of you still upset over the price drop should sell your <br />iPhone. There are plenty of buyers out there. You could get a <br />good deal on the Zune or a Razor. I would rather you go to <br />those chat sites to whine about things so I don't have put up with <br />it.

[duggerdm]

Stay on the Apple site.

Don't look now, but this isn't an Apple site. Not everyone shares your Apple passion. And clearly not everyone that touches the iPhone loves it. Though I agree with you on those that aren't satisfied should sell them. If they can afford the $600 they can afford the less than $300 they are bringing on eBay today. If enough of that happens, it also sends a message to Jobs. Don't s--t on the passionate, or they will be just as passionately against you.

[San Diego Johnny]

Sold is Sold

Commenters here are engaging in what is referred to as "fighting the hypo" as in let's suppose Apple sold 1 million iPhones.

[The_Decider]

Yup the numbers were inflated

<a class="jive-link-external" href="http://news.com.com/8301-13579_3-9774804-37.html" target="_newWindow">http://news.com.com/8301-13579_3-9774804-37.html</a>

[eldernorm]

troll???

I just love people that try to nit pick to find problems with Apple. If Apple is currently selling 27,000 iPhones per day and YES a few are sitting on shelves since they stock stores, the numbers of items shipped may be higher than those iPhones sold. <br /><br />MAY BE. Apple says sold. I believe them. If you think that there may be 20,000 - 30,000 units on shelves, then just wait a day. BINGO another 27,000 go out the door. <br /><br />We are talking a million units in 74 days and that was before the price cut (mostly). BIG time sales. I believe that palm only sold 2.7 million all year. Apple iPhone and iPod touch, boy these are going to be big. And I mean big. :-) <br /><br />en

[expatincebu]

Bottom Line: iPhone is a big success

Once again all the haters and nay sayers are proven wrong. Now <br />look for the articles about "iPhone killers" to start to emerge.

[danielz40]

Nay Saying

You mean because Apple said so, and you agree, it must be true? I need to see the real numbers activated by AT&#38;T. Not that Apple would lie. What do they have to gain? Face. Honesty. No way, just ask the guys at Xerox.

[rdwalton]

iPhone....hmmmm

I'm amazed at how you guys just run with anything and everything that comes out of Apple-world. I think those iPhone numbers are cooked much like the numbers out of the white house and congress are cooked.

[emoslayer6224]

Thats depresing.

wow, another million apple following zombies.

[bigmc6000]

In other recent news...

Cynics around the world began to question if Apple had sold more <br />iPhones than they have personally seen (generally using ranging <br />from 2 to 100). There is also a report of one such person doubting <br />that apple has sold ANY songs on iTunes because, well, Apple's the <br />only one with the numbers so they are obviously lying.<br /><br />(Please note the sarcastic undertone ;) )

[bigmc6000]

Oops - typo

Should say "generally ranging" - knew they should have a preview <br />button!

[maychic]

Apple: 1 million iPhones sold

To sell 1 million iPhones in 74 days is a very impressive sales record and it goes to show that consumers have implicit faith in Steve Jobs and his company. maychic.com/pam

[ScaryMonkey69]

Um....

So does this mean there are 1 Million people in the world with $500 to blow on a cell phone thats just a glorified Ipod with a crappy Phone Network Carrier?<br /><br />Other than the touch screen, I cant see any need for an Iphone other than bragging to poor people.