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iPhone 3GS sales above expectations, nearing 7m?

updated 10:50 am EDT, Thu July 30, 2009

Kaufman iPhone 3GS report

A report from the Kaufman Bros. research firm is said to indicate a sales shift towards higher-end iPhone models, including the iPhone 3GS, and specifically the $299 32GB model. While this should be beneficial to Apple's revenue, gross margin and EPS, the analyst suggests that the company may have expected users to be more enticed by the lower price of the iPhone 3G, and deliberately held back on 3GS production until the trend was noticed. The results conflict with predicted effects in the current recession, and indicate that buyers are willing to pay a premium for a faster processor, video recording, extra storage, and other features of the 3GS.

Kaufman is currently modeling 6.8 million iPhone sales for the September quarter, a growth of 31 percent over the June period. Future iPhone build plans could include as many as 9 to 10 million units, Kaufman sources say. The firm also argues that some future Apple products should help counter the current recession, such as Snow Leopard, new iPods, and new desktop Macs.

by MacNN Staff





  1. Constable Odo

    Joined: Dec 1969


    Analysts were dead

    certain that the $99 iPhone 3G would be driving sales almost two times more than the higher cost ones. I guess they don't know anything about Apple products. Apple doesn't attract the cheapskates of the world.

  1. slapppy

    Joined: Dec 1969



    Whatever the case the iPhone is blowing away that POS Pre easily. You want cheap? You can get the iPhone refurbish at Apple Online store or even cheaper at ATT online. I've seen it as low as 50 bucks for the 3G.

  1. testudo

    Joined: Dec 1969


    3g vs 3gs

    Analysts were dead certain that the $99 iPhone 3G would be driving sales almost two times more than the higher cost ones.

    That's not what they said. They said it would increase sales two-fold. They didn't specifically say "They'll sell twice as many 3G models than 3GS models".

    Apple doesn't attract the cheapskates of the world.

    Um, it has nothing to do with 'cheapskates'. It has to do with the fact that the 'cheap' model is cheap because its a year old model with year old technology and no enticing features. The only viable reason to purchase one is if you don't have the money to spend the extra $100 on the 3GS model.

    The only reason the $99 iPhone exists is to use as an up-sell device. Apple doesn't expect or want people to buy that phone. It's so poor compared to the $199 model they expect everyone to move up to that model. Everyone does this.

    I recall Apple selling a lame single-processor G5 tower for $1500, basically to shut up the people who said they needed a cheap tower. But only the really 'cheap' bought it, as it was so underpowered and underfeatured (RAM, HD size, proc. speed) that you'd be stupid not to spend the extra $500 for the actual 'base' model.

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