7 Real Reasons Why iPhone Is a Smash Hit

Love it or hate it…there is no denying that Apple’s iPhone is not only a game changer but a certifiable hit. Apple shared some interesting stats about the iPhone today. I culled some of the more interesting facts from the transcript of Apple’s fiscal fourth-quarter (ended September 30) earnings conference call, posted by the Apple 2.0 blog & Seeking Alpha.

  • Since its launch on July 11, Apple sold 6.892 million 3G iPhones in the quarter, bringing the total number of iPhones sold so far to 12.992 million. Many of the new phones were sold to first-time buyers.
  • Apple recognized $806 million in iPhone-related revenues for the quarter.
  • If Apple didn’t defer the iPhone revenue, the iPhone sales would have accounted for about 39 percent of the adjusted total quarterly revenues. Jobs put the number at $4.6 billion.
  • The iPhone will be sold in 70 countries by end of this year. It is currently sold in 51 countries.
  • By revenues, Apple is now the 3rd largest mobile phone maker behind Nokia and Samsung, ahead of Sony & LG Electronics. Samsung had revenues of $5.9 billion and it seems beatable.
  • iPhone is outselling RIM. Jobs kept hammering on that point during the conference call.
  • Apple says that in the 102 days since the iPhone Apps store opened, nearly 200 million iPhone apps have been downloaded. There are about 5500 apps available on the iPhone Apps store. Follow iPhone Apps on our TheAppleBlog. (Related story: What about that iPhone Bump?)

In response to an analyst’s question, Jobs said that while the company has a “miniscule market share of the mobile phone market” and that it “may not appeal to every prospective customer,” but “the percentage of prospective customers we need to attract in order to significantly increase our market share isn’t that many.” Rest of the mobile business, please make a note of that.

Apple’s volume-to-revenue ratio should scare its rivals. “The traditional game in the phone market has been to produce a voice phone in a hundred different varieties,” Jobs replied to a question about how he can play in the market with one version of the device. Jobs said that software (and user experience) are Apple’s current and future strategy. “From everything I heard, Babe Ruth had only one home run; he just kept hitting it over and over again.”

Update: I just wanted to point out that we made some observations about iPhone and how it was going to change the wireless business. All those things did indeed happen and the details from Apple’s most recent financial report proves that.

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