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.

iphone 4s siri
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.

Top Rated Comments

Glideslope Avatar
126 months ago
Apple blames rumors... I blame lack of redesign.

I blame you. :rolleyes:
Score: 14 Votes (Like | Disagree)
iMikeT Avatar
126 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.
Score: 12 Votes (Like | Disagree)
glenncal Avatar
126 months ago
Apple blames rumors... I blame lack of redesign.

This is for before the 4S was released.
Score: 11 Votes (Like | Disagree)
deputy_doofy Avatar
126 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.
Score: 11 Votes (Like | Disagree)
addicted44 Avatar
126 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...
Score: 10 Votes (Like | Disagree)
FourCandles Avatar
126 months ago
Apple blames rumors... I blame lack of redesign.

I blame you. :rolleyes:

I blame Arn....it's his rumor site. :p
Score: 9 Votes (Like | Disagree)

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