iPhone activations disappoint

iPhone activations disappoint

Summary: Early AT&T's iPhone activation numbers disappoint investors and analysts.

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TOPICS: AT&T, iPhone, Mobility
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Early AT&T's iPhone activation numbers disappoint investors and analysts.

I'm not sure what analysts were expecting from the two-day window of iPhone activations that fell at the end of the quarter for AT&T, but the numbers put out by AT&T fail to thrill.

Here's how the figures are being reported.  First, Bloomberg:

The iPhone activations were a "disappointment," Piper Jaffray & Co. analyst Gene Munster said in a research note. He estimated that Apple sold 200,000 iPhones in the two days to end the quarter. Analyst David Bailey of Goldman Sachs Group Inc. had estimated that AT&T and Apple sold 700,000 iPhones in their first three-day weekend.

And here's a link to Reuters:

Apple Inc. shares slipped about 2 percent before the market opened on Tuesday after AT&T Inc. reported initial data on activations for Apple's iPhone that were disappointing to some investors.

"There is no upside surprise on the number," Shannon Cross, an analyst Cross Research, said of AT&T's initial iPhone activatations.

Sure, there are analysts who truly believe that Apple made a boneheaded decision in partnering exclusively with AT&T in the US, and AT&T did drop the ball on activations early on, but still, a two days is far to small a window to condemn AT&T's handling of the iPhone launch. But with everyone's eyes watching the iPhone's launch, both Apple and AT&T should expect to be punished for every small mistake.

Thoughts? 

Topics: AT&T, iPhone, Mobility

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8 comments
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  • I knew it...

    My wife wanted one of these and I told her there was no way I would go along with it. I knew it would be a total failure and it is. My rep and I knew it would fail because it did not have the "hooks" into backend Microsoft technologies like ISA Server and Exchange. Its web browser is not based on IE, its OS not based on Windows. Essentially, it was a relic the day it was released. This will teach people to buy Apple products. There is no WOW in Apple. I am using this huge failure of the iPhone to re-launch "rotten to the core", a stealth campaign meant to malign the entire *Pod culture and make people realize Zune and Vista is the future of communications and media.
    Mike Cox
    • What a nimrod

      Please, someone shut off this bot. Though in fact, it's actually much stupider and less clever than any bot. The Eliza program (written in 16K of BASIC code 30 years ago) did a better job of responding that this pablum.

      At least Eliza bases its responses on what has been written, as opposed to the above, which is the posting equivalent of a male enhancement spam ad.
      hickum
      • Mmmm... Tasty Grouper

        Thank you for playing the "I fell for Mike Cox and still don't get it gag"

        No, Mike Cox is a very real person and even has a blog. I think he hasn't posted in it for some time, but hopefully soon he will do so again and we will again be able to enjoy his rants.
        nucrash
      • Mike hooks another one!

        Heh heh!

        Hey Mike, I'm glad to see that your temporary honesty bip has passed

        http://talkback.zdnet.com/5208-11202-0.html?forumID=1&threadID=36553&messageID=672599&start=-1

        That's a bigger story than this iPhone guff.....

        :-)
        bportlock
  • A 30 hour time frame

    with a lot of very long activation times.

    ATT, in some situations, took 24 hours to activate new iPhones
    when the customer was moving from a different phone company.
    They also seemed to have some major system overloads for the
    first few days.

    Since the ATT activation number only reflected the number of
    activations successfully completed during that 30 hour time
    frame the number may be a bit off. Apple's results will be a
    cleaner indication of the number sold and I expect it to be over
    the 146,000 number given by ATT.

    Even the 146K number isn't anything to turn your nose up at.
    How many sales were delayed because of out of stock situations?
    Comparing the price to game boxes, have any been able to hit
    the 146K mark within 30 hours after going on sale?

    The most important number to look at is total iPhone sales that
    are announced after the holiday buying season. That number is
    going to be far more important than the 30 hour number.
    Ken_z
  • Looks like the iPhone bubble might be bursting sooner than thought...

    [url=http://www.theregister.co.uk/2007/07/24/cios_badmouth_iphone/]CIOs pooh-pooh the iPhone[/url]

    [i]Four out for four CIOs agree: the iPhone is no match for the Blackberry. Last night, at an event hosted by Silicon Valley's tech-happy Churchill Club, four high-profile CIOs - representing Google, Hasbro, Levi Strauss, and health care giant McKesson Corp - were asked if they'd carry an iPhone for business purposes, and all four said "No."

    Meanwhile, three of the four said they won't let their employees carry Apple's latest status symbol - at least, not in an official business capacity.

    The lone dissenter was Google vice president of engineering Douglas Merrill, who likes to play up the company's anything-goes attitude. "People come to me everyday and say 'Can I have an iPhone,'" he said. "My answer is 'Yes - if you give me back your Blackberry.' If they're willing to make that sacrifice, so be it."[/i]

    How nice of Google...
    Scrat
  • The iPhone does not interest me much, but ....

    ... even I think it is very reasonable to expect two days worth of sales to reflact anything meaningful. It merely lowers my opinion of the "finance and stock-holding" brigade to "stupidier than a stump"
    bportlock
    • D*mn typos... that should have read

      even I think it is very [b]un[/b]reasonable to expect two days worth of sales to reflect anything meaningful. It merely lowers my opinion of the "finance and stock-holding" brigade to "stupidier than a stump"

      Sorry for the fumble-fingers!
      bportlock