updated 10:50 am EDT, Wed July 25, 2007
iPhone sales on decline
Following Apple's recent stock slide on the news that fewer iPhones had been activated than expected, analyst Ittai Kidron of CIBC World Markets is claiming that that demand for iPhones appears to have quickly dropped within the last 10 days. "We have noticed decent inventories at stores, and thin demand at best," Kidron says. "In fact, most Apple store visitors were not looking at the device and only a very small subset bought it."
One suggested reason for falling sales is slow data service; while Wi-Fi hotspots enable full broadband speeds, AT&T's mobile EDGE network is viewed as lethargic and a "key shortcoming" of the iPhone, according to Kidron's commentary on a buyer survey. He notes however that Apple may already be working on a solution: channel sources indicate that a phone with 3G service may be ready as soon as the fall, bringing speeds closer to par with ADSL or cable.