(Light blogging during this July 4th week…or at least I hope it’s light blogging.)
Piper Jaffray’s Gene Munster thinks that Apple sold 500,000 of its shiny new money-making iPhones this past weekend. I have no way of knowing if this estimate is correct, but I can tell you that the AT&T store where I purchased my iPhone (of course I purchased an iPhone!) ran out of units shortly after I got my mitts on one.
I can tell you that if this estimate is right, Apple generated an estimated $275 million in two days. Assuming the average unit price sale was $550, mid-way between the $499 and $599 models, the total revenue for the Cupertino company was $275 million ($550 x 500,000). That’s a big weekend for any kind of business.
That’s might be nothing, however, compared to what AT&T might generate from the watershed development. Assuming that 1) half of the iPhone buyers were new customers for AT&T (and again, I have no ability to gauge the true number…yet) and 2) the average monthly rate plans was $79 for the new customers and 3) all new customers signed up for a two-year commitment, then AT&T can bank on $474 million more in revenue over the next two years than it otherwise might have generated. (Here’s the calculation: $1,896 in subscriptions fees over two years times 250,000 new customers=$474 million.)
If anyone doubts that the iPhone is a big success, these numbers should put all doubts to rest.
Posted by Cynthia Brumfield at 4:58 PM | Print | Comments (1)
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