The frenzy created by Apple's iPhone is historic. However, the maverick innovator, Apple and AT&T, the exclusive wireless network service provider for iPod have to overcome challenges which users may face once the initial euphoria dies down.
Since its existence was announced in January, more than one million people have told exclusive carrier AT&T that they are interested in a phone that costs as much as $600. At that time, Apple shares had risen 35%. Apple fans' wait was finally over on June 29, when Apple, the makers of such iconic products as iPod and Mac PC, launched the much-awaited iPhone. Fans went hysteric as they thronged the 164 stores of Apple and 1,800 stores of AT&T across the US after waiting in queue for even days (one fan even waited in queue for five days hoping to grab a piece of the new masterpiece) marking it the most high-profile launch of tech gizmo ever. AT&T, which is the exclusive wireless service provider for the iPhone, said, "(It) sold more iPhones in the first weekend than were sold in the first month of any other wireless device in AT&T's history." The huge rush at these stores selling the latest gizmo from Apple forced several analysts to reestimate their projections as they believed that more than 200,000 iPhones were sold in the first weekend of its launch than they estimated. David Bailey, a Goldman Sachs Analyst wrote in a research note, "Apple's iPhone launch ... blew through expectations that have been climbing since January (2007) when the product was announced." He said in a research note, adding that weekend sales were `at least' double the previous estimate of 350,000 units. Ben Reitzes, a UBS analyst said, "Given strong initial demand, we continue to believe our unit estimates of 950,000 for 2007 and 8.1 million for 2008 could prove conservative." Apple's shares have gained 43% since the company announced the iPhone on January 9, 2007. Several analysts have estimated iPhone sales of 700,000 units in the first two days of the gizmo's launch, admitting that sales overshot their expectations. |
