As we should all know by now, Apple has reported sales of 1 million iPhone 3Gs in the first weekend, with Steve Jobs himself touting the release an astounding success.
The iPhone 3G’s record breaking sales number has been written about worldwide, along with first and second hand reports of network and activation issues, fables of braving the store lines in rain, sleet, and snow, and user’s ultimate elation (and natural disappointment) after getting their paws on the coveted device.
As of late, Fortune and Piper Jaffray have been the first to take a stab and question the sales numbers Apple has released. It could have something to do with P.J.’s Gene Munster’s estimate that Apple had sold a mere 425,000 phone worldwide and would take 17 days to hit the million marker (these Wall Street types must HATE being wrong). But now, according to the Fortune 2.0 blog, “One explanation for the discrepancy may have to do with how Apple counts sales. Sales at Apple Stores are recorded at the register. But sales to its partners- in this case, AT&T and the overseas carriers- are recorded when the devices leave the loading docks in Asia. In other words, some of those 1 million iPhones recorded as sold by Apple (AAPL) may still be in transit. Indeed (Gene) Munster makes the same point in a revised report issued to clients later Monday morning.”
In other words…Gene Munster is attempting to stop himself from looking foolish. Instead of insisting to his clients that his estimates gave room for error, he is now claiming that Apple giants are erroneous in the recording of their sales. Bold move Mr. Munster.
The way I see it, those that truly care (with reason) about the sales of the iPhone are Apple investors or those with interest in Apple. And when it comes down to it, it doesn’t necessarily matter when AT&T, or other carriers for that matter, actually sold the phone. Stores across the country, and the world, couldn’t keep their hands on the device. If Apple wants to tout 1 million in sales, with the possibility of including shipments still in transit to service providers, than so be it. I think it is safe to say (though I have not had the privilege of examining Apple’s contract with said carriers) that once the shipments leave overseas warehouses, they no longer belong to Apple….Thus, according to Apple, “1 Million iPhone 3Gs Sold.”
As Charles Arthur, of the U.K. Guardian Tech blog points out, many consumers have experienced trouble in activating their new iPhone, whether they encountered issues in the store, or their phone fails to speak the iTunes language. He presents the question of how Apple defines a “sale” of the iPhone. Does this insinuate the iPhone is activated and functioning? I think I can answer this for him…Absolutely not! This means the phone has been SOLD. Perhaps we will get activation numbers, if you really MUST have them, in the near future. Until then, take sales reports for what they are worth.
After reading reports from countries worldwide on the Apple mania that ensued this weekend, 1 million in sales does not seem that far off, and we can only hope that it continues to grow.
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