Only 5 iPhones Sold in Two Weeks by China's Largest E-Tailer

To say that the iPhone is a flop in China is to put it mildly

China is arguably the world's biggest potential electronics market. If you can make a product that's a big hit with Chinese consumers it's almost as big a deal as a hit product in the U.S. -- and China's buying power is expected to only grow even more in the near future. Thus optimism was high when the iPhone finally launched in China.

However, in the time since, the iPhone has proved an epic flop in China even as Chinese telecoms try to defend their weak sales. China Unicom, the phone's carrier only managed to sell 5,000 handsets in the phone's first few days, far less than at equivalent launches in the U.S., UK, France, and Germany. While the telecom says it is satisfied with the phone's sales performance, the numbers are disappointing for a phone that has burned up international sales charts.

One major problem is price. The phone is available in China for 6,999 yuan, or $1,024 without a contract, but can be purchased much cheaper in Hong Kong's so-called "grey market". The grey market cost in Hong Kong is approximately $800. Sales were also hindered by the exclusion of Wi-Fi from the phone, following China's ban on the standard, which it was trying to replace with its own standard. Since May China has begun reallowing Wi-Fi, but new Wi-Fi-ready models still aren't available yet in China.

[via Daily Tech]

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Apple's iPhone, an Indian Flop, Prepares for China

The failure of Apple's iPhone to make a dent in India's lucrative telecom market may hold lessons for its upcoming push in China

Take the most talked-about phone in recent history and launch it in one of the fastest growing cell-phone markets in the world, and you'd expect fireworks. But in India, where carriers Vodafone (VOD) and Bharti Airtel (BRTI.BO) have been offering Apple's (AAPL) iPhone since last August, unsold phones are stacking up at shops around the country. Apple won't break down sales figures by country, but a senior Airtel executive confirms analyst estimates that total official iPhone sales here have yet to touch 20,000 handsets. Vodafone, which has a lower-key advertising campaign, has sold even fewer, the analysts estimate. Even including sales on the black market, where the phone sells for half the $700 sticker price, the total only increases by an additional 15,000, according to an Indian customs official. That's puny, especially since Indian cell-phone providers have added nearly 20 million new customers since the iPhone's launch last year.

Read the whole article @ Business Week

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Apple profits up on iPod, iPhone sales

Apple's fiscal fourth-quarter profits jumped 67 percent and easily beat Wall Street expectations, capping a record-breaking year that saw unprecedented momentum in its Mac business, ceaseless consumer interest in its iPod players and a successful introduction of its newest endeavor, the iPhone.

For the three months that ended Sept. 30, Apple said Monday it earned $904 million, or $1.01 per share, compared with $542 million, or 62 cents per share, in the year-ago quarter. Revenue totaled $6.22 billion, compared with $4.84 billion in the same quarter last year.

Analysts polled by Thomson Financial were expecting earnings of 86 cents per share on sales of $6.07 billion.

Apple said it shipped a record 2.16 million Macs in the quarter, an increase of 34 percent, while it sold 10.2 million iPods, up 17 percent. In the first full quarter of iPhone sales, Apple said it sold 1.12 million units, bringing the cumulative total to 1.39 million since the product debuted on June 29.

Read the whole article @ Daily Herald

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Palm in red as iPhone grabs sales

The US handheld computer maker Palm has reported a three-month loss as the launch of Apple's iPhone hit sales of its own smartphones.

It made a net loss of $841,000 (£412,000) between June and August, compared with a profit of $16.5m in the same three months of 2006.

Palm warned on 19 September that it was likely to report a loss.

Analysts blamed it on increased competition from Apple and other manufacturers of high-end phones.

It is the first set of results since Palm sold one quarter of its shares to the private equity house Elevation Partners.

Read the whole article @ BBC

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iPhone Sales Triple After Price Cut

A retail analyst estimates that the iPhone's sales have increased an astronomical 200% after the cut.

Piper Jaffray's Gene Munster is the man to talk to when it comes to iPhone sales. Munster, a retail analyst, conducted what is considered the definitive survey of iPhone sales prior to the price cut.

He surveyed Apple stores (AAPC) over a 50 hour period to estimate that approximately 9,000 iPhones were being sold a day.

When the price decrease came about, followed swiftly by Apple's announcement that one million iPhones had been sold, Munster was naturally curious to see how the price decrease had affected price.

Combining his estimate, with Apple's sales figures for last quarter, he determined that Apple would have had to sell 136,000 iPhones, approximately, between September 5 and September 9.

This means that by his estimates, Apple was selling over 27,000 iPhones a day after the price cut, a three-fold, 200 percent increase over previous sales.

DailyTech covered Apple's announcement of the price cut last week. The price cut dropped the price of the 8GB model by 33 percent, from $599 to $399. The soon-to-be-discontinued 4GB model is priced at $299.

Many Apple faithful cried foul and were very disgruntled over the price decrease, as they had paid a much higher price for their early support of the iPhone. Apple attempted to soothe their anger by offering the early adopters a $100 credit. It also offered to fully refund the $200 price difference to anyone who purchased the phone within 14 days of September 5.

Despite the complaints, the new price cut is looking like a smart move by Apple, as the new low price appears to be driving iPhone sales into a frenzy.

Article @ Daily Tech

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