The iPhone One Week After iPhone Day
07.05.07 - 09:11pm
Well there is no surprise here, Apple has managed to sell enough iPhones that they beat everyones estimates. Over 500,000 iPhones sold with that number easily creeping past 700,000 in a week. I imagine in another two weeks they’ll break 1,000,000 iPhones sold and once they add Europe there will be another huge jump in numbers. Apple is definitely making bank with this product launch with an estimate $265 cost to manufacture each 8GB iPhone. Considering how that particular model is selling for $599, we are talking a $334 profit on each phone, lets say $300 to account for shipping and wages. That easily puts Apple with an additional $200+ million of capital within a week which is easily being reflected with Apple’s stock jumping a whopping $10 to $132.75. I suspect Apple’s stock will continue to creep up past $135 as they break 1 million phones sold and the begin to open up the European market.
So far the reviews of the iPhone have been rather positive with Anand Lal Shimpi’s review at Anandtech being a most thorough review. I suggest checking it out if you haven’t read a comprehensive review of the iPhone yet, he does a magnificent job reviewing the phone. I still have my reservations about this product as I feel like this round of the iPhone is still a “beta” version of the phone. If you ask why I feel that way I just need to point at the Macbook and Macbook Pro launch, Apple’s last major product roll-out. As much as I’d like to have one of these phones to play with I’ll let the rest of the world test out the phone and let Apple make a few revisions till a proper phone is launched. The price is also a bit steep, I’ll wait till either my iPhone iPod dies or the phone drops below $300, I can dream right? Great stuff Apple, congrats on snagging a new market.
You mean until your iPod dies.. not iPhone ;-)
If we’re talking from an investing standpoint, maybe I should guest blog - now is the time to be cautious about Apple as an investment, for a variety of reasons. Let me know if you want my opinion, I’d be happy to write something up.
Ahh nice catch there Raf, I sort of rammed this article down the pipeline a bit quick *gasp*. Feel free to provide your commentary but I think this will be the last of the iPhone on this blog for a while, it’s presence is more than covered across the rest of the world. The time to buy Apple was a week ago so I do agree about being cautious. My biggest concern is AT&T holding up their side of the bargain, I feel the customer support of AT&T will make/break the iPhone within the United States. Your thoughts?
I didn’t see you had posted back - I wish it would notify automatically via email (a thought to consider?)
The time to buy Apple was months ago, not a week ago ;-) but alas hindsight is 20:20. I remember when my parents bought me a Nano 2 Christmases ago (December 2005) and I asked for 3 shares of Apple instead (@ 72 a share, times 3, gets you roughly what that Nano cost). Now even though I’d be up $180 bucks (or roughly over 80%) in 18 months, it’s just not worth the joy my little iPod has brought me. But I digress…
If I were to take a shot at an Apple/stock post you’d have to give me space for a full post, not down here in the comments. Let me know and I can whip something up and email it to you.
You never gave me that shot, but boy I was right. If you bought when this post came out, you’d be exactly where you started… @ around $130/share.
Heh, You’d have had to purchase right before the announcement when each share was selling for $121-122 and pull out when it crested past $130/share. Would have been a quick buy though, $10/share within a 5 day period of time.