Apple Stumbles on iPhone Sales Miss

Apple shares dropped 6.1% to $134.89 after AT&T said it activated only 146,000 iPhone customers during the phone's first two days of sales. The number is substantially below the 200,000 to 500,000-plus in first-weekend sales some analysts were projecting. Separately, a CIBC research note Tuesday said that based on a store check, iPhone demand has dropped significantly over the past ten days (see full summary). On their website Tuesday, TheStreet.com reported Apple is being paid between $150 and $200 and $9/month by exclusive service provider AT&T for each signup over the duration of the typical two-year customer contract, according to people close to the companies (see full summary).

Sources: AT&T press release, TheStreet.comMarketWatch
Commentary: Apple : AT&T’s Says 146000 Q2 iPhone Activations [Barron's] • Apple's plunge: Sore spot or buying opportunity? • Apple’s Q3 Report Wednesday: All Eyes On The iPhone • Apple To Announce Earnings: Will iPhones Overshadow Macs & iPods?
Stocks/ETFs to watch: Apple Computer Inc. (AAPL), AT&T Inc. (T)

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Comments

[willrob:]

ATT in store purchases of iPhones required credit check/activation while you waited. Which explains why they didn't sell many units. Apple store sales and Apple on-Line sales are activated via iTunes and those numbers have not been released. Perhaps tomorrow at Apple's earning report. As for the idiot from CIBC (he's a RIMM analyst, by the way, not an Apple one) seems to think that the drop in sales from the first weekend is meaningful. Did he expect Apple to sell 7 million units in July, which is what the continued pace would lead to. Apple stores are reporting sales of 50+ phones a day since July 5th. Where sis he do his channel check? And why is a RIMM analyst speaking up the day before Apple's earnings report? If only the SEC had meaningful laws, or inforced the one they do have.

2007 Jul 24 03:45 PM