Aidan MalleyResearchers at PiperJaffray say that seemingly low AT&T iPhone numbers mean little in the long run for Apple. Meanwhile, iPhone customers finally have the opportunity to extend their warranties.
High analyst expectations for iPhone remain steady
"Unpublished Street expectations for iPod numbers were 8m for the [December 2004] quarter, but during the keynote, Steve Jobs announced that only 4.6m iPods were sold in the quarter, which was viewed as a significant disappointment." Munster explained. "In our minds, the iPhone launch is reminiscent of [that past] quarter, because expectations for the product ran wild and the reality of how many were actually sold fell short."
The quality of the product was not a factor in the launch, he added. If anything, the iPhone had "largely exceeded" what could be expected and it was a question of when, not if, a steep increase in Apple's shipments would hit. 2007 and 2008 sales were never poised to see explosive growth, according to the analyst.
PiperJaffray continued holding its aggressive target of $205 per share, with Munster firm on his perception of the iPhone as a game-changing device that would see certain success by at least 2009.
The iPhone "has set the bar for the next generation of phones," he said. "Our belief all along has been that there is a surge of demand coming."
Apple offers up iPhone AppleCare package
Making its promised appearance shortly after the June debut of the iPhone, the AppleCare extended warranty has appeared at Apple's online store.
With the exception of a few states where the law prevents otherwise, the $69 service extension adds an extra year of coverage for hardware defects (but not accidents) relating to the handset. Notably, the warranty also applies to the official Apple Bluetooth Headset despite its selling as a separate accessory.
No extensions apply to over-the-phone technical support, which remains free for any iPhone user over the course of the two-year AT&T contract.
Andrew Orr
Wesley Hilliard
Christine McKee
Appleinsider Staff
Malcolm Owen
41 Comments
Munster can't just admit that he totally overdid his numbers. What a Herman.
Munster can't just admit that he totally overdid his numbers. What a Herman.
Spam,
Can you admit that it's not a product that everyone wants? I mean, $600+ for a multimedia device that requires a specific network, only has 8gb of storage (minus whatever the OS takes), and is missing some very basic features that would be expected of a device like this.
I'm not saying it can't become like the ipod, but the ipod started with alot of storage (for the times) and high price and worked it's way down. The iPhone is starting high priced with very little storage. Remember this is supposed to replace peoples iPods. And hearng talk of a nano iphone, what the hell does that mean, a phone with 2gb storage, hmm... Doesn't sound enticing to me.
I am so happy that there are analysts who comment on Apple because ALL of them are on PCs and all of them take out their frustrations on this stock. With the exception of Jim Cramer, every analyst has been wrong about Apple.
They either downgrade it because they don't believe in it or they upgrade it so high, you'd think they were in bed with Steve Jobs.
I've only bought the stock when the analysts downgrade it, because their reasons for downgrades never seem to make any sense. Look at the fundamentals - no debt, great earnings per share, growth for years to come. The only reason I can think the analysts miss every time is because they have a personal problem with Steve Jobs or something.
Especially the "fast money" guys - whew! They've been wrong almost 6 times this year alone! Amazing....
I am now up $72,000 in one year from an investment of only $30,000 and sold before today because there is absolutely no reason why the stock should have been so high anyway. Realistically, this stock should be $110 before earnings and it should go to $130 after earnings. When it drops to $125, I will be picking up more because it's back to school time.
I don't see why any analyst worth his MBA could not have figured out that a stock price of $140 and up makes no sense - they would have had to sell 1,000,000 phones in 30 hours.
THINK ABOUT IT! The stock dropped based on iPhone sales in 30 hours? WHAT A JOKE! 30 HOURS OF DATA! HOW COMPLETELY ABSURD!
How in the world are these guys employed? They completely discounted the entire rest of the country and got caught up in the hype they so despise. PATHETIC!!!!!
Stay with Apple. They will always be ahead of the curve. They've done it for years now...
Spam,
Can you admit that it's not a product that everyone wants? I mean, $600+ for a multimedia device that requires a specific network, only has 8gb of storage (minus whatever the OS takes), and is missing some very basic features that would be expected of a device like this.
I'm not saying it can't become like the ipod, but the ipod started with alot of storage (for the times) and high price and worked it's way down. The iPhone is starting high priced with very little storage. Remember this is supposed to replace peoples iPods. And hearng talk of a nano iphone, what the hell does that mean, a phone with 2gb storage, hmm... Doesn't sound enticing to me.
took a year foe me to buy my daughter an ipod and i just got one for father's day. what's that ? 5 years after it came out ? Won't be but 6 months before i get my iphone ,,,it won't be 5 years .
took a year foe me to buy my daughter an ipod and i just got one for father's day. what's that ? 5 years after it came out ? Won't be but 6 months before i get my iphone ,,,it won't be 5 years .
If you had an iPod with storage above the size of the nano's then you would find the storage in the phone inadequate. I'm not saying it's not a product for some people, but it's definitely not a product for the masses. Not yet anyway...