Setting aside some relatively impressive Mac sales, Apple’s iPhone was the true star of the company’s earnings drama on Tuesday–though the the device might be a little tough for some folks to to get their hands on in the near term.******Apple said it can’t meet current demand for the iPhone 3GS, which launched last month. The 3GS is available in 18 countries and is being rolled out this summer to another 80-plus countries.******Overall, the company sold 5.2 million iPhones in the June quarter, ahead of many analysts estimates. That total includes sales of the reduced-price $99 iPhone 3G.******Chief Operating Officer Tim Cook said “the iPhone 3GS is constrained in virtually every country we’re shipping it in. So the demand has been very robust.”******He later added: “I don’t want to predict today when supply and demand will balance. I know that it will not balance in the short-term. And I don’t want to give a prediction because as you can guess, it’s very difficult to gauge the demand without having the supply there to find out what it is… In terms of affecting the country roll out, I believe the vast majority of the countries that we are selling the 3G in will be selling a 3GS by the end of the fiscal quarter. So it may move the date by a few weeks here or there.”******Cook also delivered some interesting factoids on iPhone adoption by large corporations. He said close to 20 percent of the Fortune 100 have bought at least 10,000 units or more.******But Cook stuck to the company line on AT&T, the exclusive iPhone carrier in the U.S. (“I think it’s an excellent relationship and we’re very happy with it”), and provided no new details on when the iPhone might launch in China.
Some analysts worry that T-Mobile USA may have missed a trick by opting for a new Android device, myTouch 3G, which is mostly the same as HTC’s first one, the G, except for its slimmer shape and lack of a physical keyboard.
Haven’t got your hands on Apple’s new iPhone 3GS yet? In certain parts of the U.S., you may have to wait just a bit longer. Apple says retail stores in some states (such as Utah, Oregon, Alabama) and certain cities are sold out of the new device, which went on sale on June 19.
Apple fans whooped it up yesterday when the company announced its first sub-$100 iPhone and a pair of faster, improved iPhone models.******But if you’re an existing AT&T customer and you’re looking to get your mitts on Apple’s newest gizmo, you might not be so excited by the fine print.******It turns out that the $99 iPhone is actually $499 for many existing AT&T customers. The new 16GB iPhone 3GS -0 the one that features video capture, faster throughput and a digital compass — which Apple unveiled for $199, will cost AT&T customers $599. And the new 32GB version is available to AT&T customers for the very special price of $699, which is significantly more expensive than the $299 price tag that anyone else can buy it for when they walk into an AT&T store for the first time.******The higher prices require renewing a 2-year contract with AT&T.******Update: AT&T said on Thursday that existing AT&T customers who renew their two-year contract can purchase the iPhones for $299 (for the 8GB model), $399 (16GB) and $499 (32GB), rather than the $499, $599 and $699 prices listed on Apple’s Web site. The higher prices are to purchase phones without any contract.******And the folks at AT&T also throw in an $18 activation fee. This activation fee applies to all AT&T customers who get a new device, whether it’s an iPhone or a more basic gadget. The problem is that the iPhone is such a high profile device that it brings everything from the carrier’s network quality to its contract fine print right into the forefront.******In fairness, it isn’t unusual for a carrier to hold off on selling its existing customers heavily subsidized phones until they’ve been a customer long enough to have repaid the debt. AT&T spokesman Mark Siegel explained:***
The key here is that the iPhone and our other devices are subsidized. The consumer is paying much less than the cost we will typically pay for devices.
from Summit Notebook:
Next time a bartender draws a long, cool German brew on tap at your favorite U.S. bar, you might be sipping beer that made a mobile phone call along the way.
At the Reuters Technology Summit in New York, AT&T's Ralph de la Vega, who heads its wireless division, described a firm that has fitted its beer with mobile devices.
from Summit Notebook:
AT&T says it sees a lot of promise for the netbook and the connection fees that come with the devices as a growing source of revenue as consumers look to take broadband connectivity on the road. But will consumers be as enthusiatic to sign another contract for the service? Click below to hear AT&T's President of Mobile & Consumer Markets talk about what he sees as the future of the netbook.