According to investment bank Pacific Crest Securities, Apple is planning to slow production of iPhone 3Gs from 18 million units down to around 14-15 million. They say that Apple is intentionally slowing production in order to give them more sustainable pricing power. Despite the slowdown, Pacific Crest has raised their sales estimation from 8 million to 11 million.
Prices of Apple (AAPL) stocks took a severe blow following warnings from two separate analysts. Mike Abramsky with RBC Capital has downgraded Apple's rating from "Outperform" to "Sector Perform," lowering their stock target from $200 to just $140. Similarly, Morgan Stanley analyst Kathryn Huberty switched her rating from "Overweight" to "Equal Weight," dropping her predicted target from $175 to $115.
While for a time it was believed that it would overcome it's shortcomings in the Japansese market, one analyst is now says that sales may fall very short of the predicted 1 million mark. Despite having enough to go around, its lack of features and high price could cause it to sell just half a million units.
Despite growing to become the top music store in the U.S., the iTunes Music Store's early days pale in comparison to the rapid early growth and popularity of their App Store. Just this August, Steve revealed that over $30 million in revenue had been generated by the app distribution store and 60 million apps had been downloaded.
Despite it's shortcomings, the iPhone 3G is selling like hotcakes, and it's quickly overtaking sales of the first generation device in the short amount of time that it's been open. At the first launch, it took a year just to sell 6 million iPhones, but the iPhone 3G will reach its 6 million mark next week at the latest, and may have already done so.
Piper Jaffray spent 25 hours observing sales at Apple stores around the US, and has concluded in a research note posted today that each store sells around 95 iPhone 3Gs every day. Based on this information, they estimate that sales of the device are set to increase forufold during their fiscal fourth quarter.
According to Michael Cote, former T-Mobile executive and analyst with the Cote Collaborative, Apple has already sold over 3 million iPhone 3G's worldwide. The incredible demand is defying the otherwise downward trend in consumer spending, employment levels, and overall economic health, and has overtaken Wall Street analysts' predictions of 3-4 million by year's end.
The Wall Street Journal got a chance to sit down with Steve Jobs at the Apple HQ in California recently, where they discussed the App Store's success so far and it's importance to the iPhone and iPod touch. They also touched on that kill switch found by Jonathan Zdziarski in the iPhone's code.
O2 announced during their Q2 financial results that they have gained over 137,000 new monthly-paying customers to their user base thanks to the iPhone. Interestingly these users arrived before the iPhone 3G launch. Prior to the iPhone 3G launch, O2 cut the prices for their 8GB and 16GB iPhones to clear out inventory in anticipation of iPhone 3G shipments, and their claims show that it was successful.
Verizon claims that the launch of the iPhone 3G has affected their sales since it's release, but not by much, the company says. While discussing their quarterly results for their conference call on this Spring's figures, the company said that the iPhone 3G has a "minimally short-term impact" on their sales since July 11th, and that it's influence was "disproportionately less" than they expected for both AT&T and Verizon.