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July 25, 2007 1:49 PM PDT

Yes, Virginia, activation != sales

by The Macalope
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Reuters reports that Apple is announcing iPhone sales figures of 270,000 for the second calendar quarter. Now the question is why don't AT&T and Apple's numbers agree? [Update from conference call: Apple does seem to be blaming it on activation problems. So 46% of iPhones had activation problems lasting longer than 30 hours? Wow.]

Also, another great quarter overall with record Mac sales and iPod sales up 21% year-over-year.

The Macalope eagerly awaits the first silly pundit to point out -- again! -- the dire news that iPod sales were down for the second consecutive quarter. The pointy one never gets tired of that tomfoolery!

[Update: On the conference call, Apple seems to be hinting at some new lower margin products coming during the current quarter for the school buying season. That's the horned one's interpretation anyway.]

Mythical beast and rumormonger extraordinaire, the Macalope writes about all things Apple for the CNET Blog Network. Read more at The Macalope: An Apple blog. He is not an employee of CNET. Disclosure.

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Online orders
by texasags July 25, 2007 3:00 PM PDT
We also don't know what percentage of the sales were online or were given as gifts...
Reply to this comment
Do people really need to activate it ?
by spyroland July 25, 2007 3:08 PM PDT
"So 46% of iPhones had activation problems lasting longer than 30 hours?"

Maybe they lasted only 13,8 hours ? So the people buying in the last 46% of 30 hours were not registered for that weekend.

I don't know how it works in the US, but maybe people were waiting for the end of the month for their current plan to end ? (Maybe they thought they would be able to use it as a pda in the mean time).

And, is it possible to change operator without changing number ? Because here (France) it takes a few days to get the appropriate paper.

Oh and what texasags says.
Reply to this comment
Probably low
by Macalope July 25, 2007 3:38 PM PDT
The horned one suspects those percentages were probably pretty low, particularly for the first 30 hours. Remember that the online store listed the iPhone as shipping within two weeks when it first went up.
Reply to this comment
I Hate To Bring This Up
by ZiggyBop July 25, 2007 6:24 PM PDT
I really hate to bring this up. I may loose some credibility here. But it's in the
newspapers. There's some people out there whose life doesn't revolve around
technology. Sad, but true.

I'm told that some of those people may have picked up their iPhone Friday
night and actually went to a movie or out for a drink instead of rushing home
to activate it! It's true!

Others reportedly bought an iPhone on their way to the beach on Saturday
and drank a lot of something at the BBQ! Blasphemy!

And this is just an anecdote, but a friend of a friend said she'd heard about
the activation problems and didn't try activating her band new iPhone 'cause
she couldn't bear to be without a phone at the mall on Saturday! Amazing!

They all activated on Sunday, the first day of the 4th quarter.
Reply to this comment
Flash-Based Mac coming soon?
by tigermarc July 25, 2007 7:33 PM PDT
In the 40th minute of the conference call, a Morgan Stanley analyst asks about
the 2005 contract that Apple has on NAND Flash memory. Apple's reply is that
it's happy it made that agreement in 2005 because now Apple "uses flash in all
of its products..."

I wonder if this hints at a flash-based Mac, or if the Mac was simply a victim of
temporary memory loss. Perhaps they mean only the iPod and iPhone products?
Reply to this comment
And furthermore...
by ripragged July 25, 2007 8:48 PM PDT
Everybody seems to agree that trying to measure the success of the iPhone
based on a couple of loosely related numbers is kind of silly.

On another note, there were never any lines for the introduction of Zune or
Vista. Microsofties say they're huge successes. There must be some kind of a
metric in there somewhere.

If at first you don't succeed, so much for skydiving.
Reply to this comment
Not 270,000 iPhones
by pauldwaite July 26, 2007 1:42 AM PDT
270,000 "iPhones and Apple-branded and third-party iPhone accessories". That sounds like it could include iPhone cases, and anything else they were selling.

So less than 270,000 were sold. It's impossible to tell how close the actual number was to AT&T's 164,000.
Reply to this comment
Silly pundits and newspaper reporters
by gmsquires July 26, 2007 8:23 AM PDT
Well,, the Horned One, didn't have to wait long for the idiotic comments regarding iPod sales droping second quarter in a row. The San Jose Mercury News' own Troy Wolverton made that assesment in his write up on the Apple news in the biz-tech section today, inspite of the 21% increase in sales over last year.
Reply to this comment
Accessories not included!
by Macalope July 26, 2007 8:55 AM PDT
That point was clarified. The revenue number includes accessories but the units shipped does not.
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About The Macalope: An Apple blog

Born of the earth, forged in fire, the Macalope was branded "nonstandard" and "proprietary" by the IT world and considered a freak of nature. Part man, part Mac, and part antelope, the Macalope set forth on a quest to save his beloved platform. Long-eclipsed by his more prodigious cousin, the jackalope (they breed like rabbits, you know), the Macalope's time has come. Apple news and rumormonger extraordinaire, the Macalope provides a uniquely polymorphic approach. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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