iPhone shortages “nice problem to have”

October 20, 2009

Tongues are still wagging about Apple’s blowout quarter, which saw the company brush past Wall Street forecasts, sending its shares north of $200. But as Wall Street waited breathlessly for the latest iPhone numbers, it was the company’s Mac line that stole the headlines, posting blockbuster 17 percent unit growth.

So what was the deal with the iPhone? Unit shipments rose 7 percent to 7.4 million units, far from chopped liver but just below the consensus estimate. What? Apple missed? Well it wasn’t quite that simple. Seems the company simply couldn’t keep up with all the folks clamoring to get their hands on the latest model, the 3G S.

Apple COO TIm Cook called it “a nice problem to have in the scheme of things,” and called 3G S demand “phenomenal.” He said demand simply outstripped supply in most of the countries where it was selling the device.

“We did improve supply markedly in September, and supply and demand converged in the vast majority of countries, either in September or in early October…we now have about 2.4 million units in the channel and that’s an additional 585,000 from the previous quarter end.”

When asked whether he was comfortable with that level, given the upcoming China launch, Cook said “I would have liked to have had more, honestly, because we were still short in some countries at quarter end.”

Cook was also asked about the wave of new smartphones that are coming onto the market. A new Android device from Verizon and Motorola has recently been taking shots at Apple in new ads.

“Frankly, I think that people are really just trying to catch up with the first iPhone that was announced two years ago, and we’ve long since moved beyond that,” Cook replied.


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Posted by MediaFile » Blog Archive » iPhone shortages “nice problem to have … » Test WP | Report as abusive

I’ve had an iPhone since they first came on the scene a couple of years ago. It recently went on the blink, so I shopped for a new phone, intent on not getting another iPhone for obvious reasons – quirky, can’t use office software to develop spreadsheets, too gamey, locks up when it decides to, no video (except on the GS), overpriced for what it is, iTunes is horrible, etc. I looked very hard at Blackberry, Nokia, etc. and found that the iPhone is still the best phone for now, even given its intended use for younger people. There are several people who have dropped their iPhine accounts and opted for non-Apple models, which will be the trend once the competition comes into full swing. Apple is riding the wave, for now.

Posted by Frank | Report as abusive


not serious, a toy, too gamey? Like they said in 1984? For 25 years that’s the only argument against Apple products.

Posted by Hans | Report as abusive

Does anyone know what the media service fees are for the other companies for touch phones? Mine is $30/month minimum for AT&T iphone.

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