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Apple Blames Rumors for iPhone Sales Drop, Confident in Record Sales for Holiday Quarter

While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S.


Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend.

iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S.

Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year.

Related roundup: iPhone 6

Top Rated Comments

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39 months ago

Apple blames rumors... I blame lack of redesign.


I blame you. :rolleyes:
Rating: 14 Votes
39 months ago

Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid.



I wouldn't blame investors, I would blame bonehead analysts.


Apple blames rumors... I blame lack of redesign.



If you're looking for a huge redesign in a product every time a new revision, even a minor one is released, it tells me that you must be the kind of person who gets easily distracted by shiny objects.

I dare you to try to come up with a new design for a product every time a new revision is released.

By the way, 4 million iPhone 4S's were sold in its first 3 days of sale, beating previous iPhone releases. It has the same design that the original iPhone 4 has.
Rating: 12 Votes
39 months ago
Really? 17 million is a disappointment? Does anyone stop to think that this disappointing number was due to the pent up demand for the latest iPhone? I know I'm preaching to the choir here, but investors are f####ng stupid.
Rating: 11 Votes
39 months ago

Apple blames rumors... I blame lack of redesign.


This is for before the 4S was released.
Rating: 11 Votes
39 months ago

Apple blames rumors... I blame lack of redesign.


Well, you are an idiot then, since the sales drop was before the 4S was revealed...
Rating: 10 Votes
39 months ago

I wouldn't blame investors, I would blame bonehead analysts.


The problem for Apple was clearly the delay.

1) Analysts were modelling sales based on an increase from the yoy quarter, however, last year, this was the first quarter after launch of a new iPhone, while this year, it was the last quarter before the launch of the new iPhone.
2) Apple had established a clear pattern of releasing a new iPhone in the Sep quarter. As a result, even those who did not follow rumor sites, were expecting the iPhone in the last quarter, and delaying purchases.
Rating: 9 Votes
39 months ago

Apple blames rumors... I blame lack of redesign.


I blame you. :rolleyes:


I blame Arn....it's his rumor site. :p
Rating: 9 Votes
39 months ago

Having 128 models is truly ridiculous. It shows that they're just trying to flood the market so they can take over more by numbers. It's almost cheating.


One of the things that Apple does right is they have very few models, and when they release a new product they make you feel like your old model is out of date. I can tell you the difference between every single iPhone model out there, because there has only been 5 of them.

Meanwhile I couldn't tell you the difference between the Galaxy S and the Infuse, or the Epic. And when they come out with a the Galaxy Ultimate or whatever, I don't feel like I need to upgrade because it only looks different and it feels like a cosmetic upgrade rather than a performance upgrade.
Rating: 8 Votes
39 months ago

It just gives the consumer different options....


They don't need that many options. It just confuses people.

If more companies did like Apple and made a few high quality products rather than 128 "ok" products they would be better off.

About once a year my wife has to go buy a new curling iron because the one she bought the year before took a dump on her. She goes to Target to check out the 30-40 choices they have. 30-40 choices....are you serious? It's a stick that gets hot and curls your hair.

End of mild rant.

Steve
Rating: 7 Votes
39 months ago

How many iPhones are there? How many Samsung smartphones are there? That's not a fair comparison, and doesn't help to put anything into perspective.

Here's a link to help you. (http://www.samsung.com/us/mobile/cell-phones/all-products)


128 models...talk about fragmentation.
Rating: 5 Votes

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