Daniel Eran Dilger
The Verizon Event
A report by Asymco describes how Verizon's iPhone 4 sales failed to result in a massive migration from AT&T, instead simply adding roughly two thirds as many more sales in the US compared to AT&T alone.
Predictions that the Verizon iPhone would be largely ignored by Verizon users happy with Android or enticed to upgrade to Verizon's new 4G LTE network (which is not supported by Apple's smartphone) also failed to materialize, with the year-old design of iPhone 4 outselling new 4G LTE smartphones at Verizon by a nearly 2-to-1 margin.
At the beginning of July, Goldman Sachs analyst Jason Armstrong predicted Verizon's iPhone sales would "likely be a touch below the 2.2 million" that the company had sold in its initial quarter of iPhone sales.
However, Verizon actually sold slightly more iPhones in its second quarter, despite competition from newer Android models capable of tapping into Verizon's much faster 4G network, such as the HTC Thunderbolt and Droid Charge.
Beyond the US, explosive growth
While the iPhone was able to hold its own at Verizon, achieving significant US growth for Apple without significantly blunting AT&T's sales, Apple's most intense growth came from outside the US, as noted in charts presented by Asymco.
The site calculates non-US iPhone sales as being all reported iPhone sales minus the number of reported activation by AT&T and Verizon. However, there is a delay between sales and activations, so this "non US" number also includes the entire inventory of iPhones held by AT&T and Verizon which are waiting to be sold to end users and then activated.
Even so, the growth in iPhone sales independent from US carrier activations indicates that Apple's efforts to aggressively expand its international carrier network is paying of dramatically. Sales of iPhones outside the US passed the halfway mark back at the end of 2007, and have inched upward since, leaving US sales at around 30 percent of Apple's total iPhone market.
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Christine McKee
Malcolm Owen
William Gallagher
Andrew O'Hara
Wesley Hilliard
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7 Comments
For those who claim the iPhone has to have 4G to grow.
For those who claim the iPhone has to have 4G to grow.
LTE has to have the iPhone to grow, really.
Yes, we need a buildout of networks worldwide before an iPhone is made for them, but once there is an iPhone, we'll see an explosion of growth.
Like AT&T and their 3G "buildout", only actually happening and not hilariously, disgustingly gimped.
For those who claim the iPhone has to have 4G to grow.
It will need 4G LTE to grow.
In 2013.
As of now, Wednesday, July 27, 2011 at 11:03 PM
http://www.google.com/finance?client=ig&q=NASDAQ:AAPL
392.59 -10.82 (-2.68%)
After Hours: 391.30 -1.29 (-0.33%)
And then I see this AI article... So, I wonder what you guys think of the following Thoughts and Questions that came to my mind?
If it's true that most of Apple's Growth is from Sales outside US, then would that mean that AAPL should be an even safer investment, even the US Debt Ceiling Political Crisis?
If "The Sky Falls" in US, and and around the world, would AAPL still be an even safer investment, particularly that Apple is kind of Self-Insured with 76B in CASH!!!
Related to my Q are these articles I've stumbled upon:
"Why Apple Won't Pay a Dividend" http://bit.ly/oTuzpt - Repatriation Tax is given as a possible reason, although the exact $$ or %% is not given
Jim Cramer: Apple to $500 on 7/20/11
http://www.cnbc.com/id/43825763?__so...*blog*&par=RSS
Obviously, NOBODY anywhere has a Crystal Ball to predict how the Crisis in Washing Politics will play out, or anything else! Add to that the usual speculations about Steve Jobs health, plus a never ending parade of Law Suits against Apple, but...
Maybe it's a wishful thinking on my part, but here it is:
Phones break, get old etc... Mankind has tasted the Smart Phones vs. older phones, so people will increasingly crave Smart Phones!
The sales of Smart Phones are still nowhere near where they will be eventually. Then it's Upgrades, and hand downs of older models to kids... Same with iPads and Computers... iPads will only get hotter, as will all Tablets!!!
So, even on Sell Off Days, like today, it's hard not to be very optimistic about Apple's Future, and thus AAPL!!! But again, with all the Soap Opera of Washington Politics, I wonder how it will effect AAPL?
I have a feeling that some folks wouldn't mind this crisis, because they have cash ready to Buy Cheap, and lot's of things might get Cheap, if the Crisis materializes!!! Of course some people will panic, and will later regret not holding on to their investments, AAPL among them...
AAPL 392.59
http://www.google.com/finance?client=ig&q=NASDAQ:AAPL
Google 607.22 [52 week 447.65 - 642.96]
http://www.google.com/finance?q=NASDAQ:GOOG
So I don't see why AAPL at 600 is unthinkable!!!! How Long it will take, nobody knows, but eventually it'll happen, and Google's 600 won't stay still either! And I don't remember hearing about Google having more Cash than Apple...
Good luck to all AAPL investors in any case!!!
For those who claim the iPhone has to have 4G to grow.
1. Once the iPhone is on Verizon people will abandon at&t in droves.
2. The iPad is doomed. Who would want an oversized iPod Touch?
3. 4G yada yada yada.
4. WP7 will rule the world.
5. Android will kill Apple.
The crackpots believe their own wet dreams, are discredited on a daily basis, yet they keep on chuggin' along. Hope springs eternal I guess.