Comments on: iPhone's sanity check

By: Ipod Express » Blog Archive » Apple Earnings Call Behind the Highlights: iPhone Cannibalizing iPod Sales? (Update: Probably Not)

Fri, 10 Aug 2007 23:17:26 +0000

[...] all the more interesting. Cue the wild speculation as to which product he’s referring to. [GigaOM & [...]

By: Guruprasad V

Guruprasad V — Fri, 27 Jul 2007 12:41:48 +0000

Hi Om,

I think that guys like you're putting too much pressure by predicting numbers which are ridiculous, awkward, meaningless and ofcourse idiotic. Please don't look anything and everything in a week, month or a quarter. These are all long term bets. I think APPLE is also succumbing to numbers game. Wait for sometime and then come to conclusion. Your so called intelligent calculation of Median (Which you worked around $550) is absolutely absurd. I think that intelligent analysts and tech writers like you are putting too much pressure to Apple. I think folks like you are coming up with numbers on their own terms and they're coming into conclusion about success or defeat about a product. Give APPLE a break.

By: Scott G

Scott G — Fri, 27 Jul 2007 04:15:13 +0000

Om,

You are among the few who reported this and later corrected the article when confronted with the facts about the true number situation. Bravo!

The fact that did this (and in a very transparent way) is much of what brings me back to your site each day.

Best regards and thank you.

By: Harry Potter and the iPhone

Harry Potter and the iPhone — Fri, 27 Jul 2007 02:32:32 +0000

[...] But the problem with hype is that you have to live to it. And in both cases it was hard. Om Malik has a good article on how the iPhone has not lived up to its expectations. And with Harry Potter being sold at a 40% [...]

By: realitycheck

realitycheck — Thu, 26 Jul 2007 21:28:48 +0000

ATT 8125 with 2/3'rds more features? Other than word/excel/powerpoint mobile, what are these other features?

This dog of a phone plays WMV/Plays for shure files, the camera resolution is not outstanding either. WMV files? Yuck.

I don't think you are the target demographic for the iPhone.

By: Blessipo

Blessipo — Thu, 26 Jul 2007 20:40:18 +0000

1 million devices in one quarter is 333k devices per month, or am I mistaking?

By: psburton

psburton — Thu, 26 Jul 2007 20:37:49 +0000

The Iphone has about a third of the features of my cingular/ATT 8125 and sells for $500 less. Anyone who bought an Iphone bought hype and little else.

By: jayrecommends

jayrecommends — Thu, 26 Jul 2007 19:08:46 +0000

Seems like only yesterday that folks were having so much trouble with Windows XP and it took 2 years to work all the bugs out. To those that bought the iPhone on the first day and paid the high dollars for it, I can only say "You should have known". No doubt it'll improve over time and the price will come down. I, like most other people in any type of business for themselves, try to predict trends and what the public wants, but it's still only guesswork.

By: metroxing

metroxing — Thu, 26 Jul 2007 17:11:26 +0000

You can't compare Q2 to Q3 for the same or different year - no one does that analysis as there might be differences in the number of weeks or what holiday falls where. Even when you compare Q2 from one year to another, you have to factor in the number of weeks or if a holiday falls in it one year but not the next. That would be like comparing rain patterns from spring to summer. It doesn't tell you anything.

In terms of iPod sales, the fact that Apple can continue to pull in double digit sales increases without having the cost of redesign and keeping prices up even when component prices are dropping shows you that the iPod has plenty of life left and Apple can wait to release an upgrade.

By: French

French — Thu, 26 Jul 2007 15:04:35 +0000

is it 270,000 iphones, or 270,000 iphones and related iphone devices. The official statement released by Apple has a footnote that states "(6) Consists of iPhones and Apple-branded and third-party iPhone accessories."

That could be big difference in # of phones

By: Jacob Varghese

Jacob Varghese — Thu, 26 Jul 2007 13:33:59 +0000

I thought the weekend included Sunday. All of these numbers from Apple and AT&T only include Friday after 6pm and Saturday. They could have had a great day on Sunday.

By: Om Malik

Om Malik — Thu, 26 Jul 2007 08:19:04 +0000

Hi folks,

You are right. Looked at the 2006 Q2 and Q3 numbers and revenue decline in iPod sales is actually higher, and yes you are right, this is seasonal.

Apologies accepted?

By: Om Malik

Om Malik — Thu, 26 Jul 2007 08:05:42 +0000

I think the big issue here is that as the iPhone interest went up, it slowed the sales of high end of iPod. It shows in the numbers – both units and revenues are down quarter over quarter. It is important to note that – even though the situation might be slightly different next quarter.

if there is a big iPod refresh – well sure the sales are going to go up. if the numbers continue to trend down, then they have an issue. i have been wanting to refresh the iPod, but the iPhone made more sense – bigger and better screen.

By: John

John — Thu, 26 Jul 2007 06:53:41 +0000

iPod sales are up by a healthy margin year on year. You dont compare sales quarter to quarter due to seasonality.

By: Bahi

Bahi — Thu, 26 Jul 2007 06:38:39 +0000

You compare sequential quarters when Apple's business is so seasonal. Year on year, iPod sales grew substantially. If the iPhone were having an effect now, in 2007, it would show when comparing this Q3 with Q3 2006. iPod sales growth, or possibly outright sales figures - particularly for the high-end model - might be expected to slow, given that the last major refresh (5G, aka the video iPod) happened late in 2005, affecting form factor and internal design. The more recent facelift was very minor - expect new iPods in Q4, ready to be polished and revised for the holiday season (Apple's Q1).

By: RR Aranda

RR Aranda — Thu, 26 Jul 2007 04:43:33 +0000

Apple explicitly said in the results conference call that there was "absolutely no evidence" of iPhone cannibalizing iPod sales.