Apple CEO Steve Jobs: iPhone sales “too big to ignore” | iLounge News

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Apple CEO Steve Jobs: iPhone sales “too big to ignore”

Making a rare appearance during the company’s quarterly results conference call, Apple CEO Steve Jobs discussed several topics, including iPhone sales, the App Store, and the economy. Notably, Jobs compared Apple’s iPhone sales in the quarter to that of rival Research In Motion, stating that Apple “beat” RIM by selling 6.9 million iPhones compared to RIM’s sales of 6.1 Blackberry devices. “Even more remarkable,” Jobs said, was the fact that measured by revenues, Apple has become the world’s third-largest mobile phone supplier, behind only Nokia and Samsung. Stating that deferred iPhone revenue has grown to $5.8 billion dollars, or 39% of Apple’s total revenue, Jobs said it was “too big to ignore,” while outlining the company’s reporting of non-GAAP financial results to help investors get a better sense of Apple’s actual business. Later, when asked about the upcoming year and the possibility of the market being cluttered with iPhone “wannabes,” Jobs said the company has to be the best, without leaving a price umbrella underneath the iPhone. He noted that Apple has a great partner in AT&T, and that both are committed to making the iPhone a great value for customers, while hinting that the “next round” would include either lower prices or new models.

Speaking about the App Store, Jobs said Apple has changed the value proposition for mobile devices. He said the Store will see its 200 millionth download tomorrow, now offers over 5,550 applications, and is available in 62 countries around the world. The rate of new submissions increases every week. “We’ve never seen anything like this in our careers,” Jobs said. He also said that customers are now attracted to iPhone not only for its functionality and multi-touch user interface, but also its ability to add free games and applications.

Discussing the economy, Jobs described Apple customers as some of the smartest, most product-aware customers in the market, saying that they are unlikely to abandon the quality and seamless integration of Apple’s products. He went on to say that they are more likely to delay purchases than switch away from the company’s products, and that while Apple may not appeal to every prospective customer, the percentage it needs to appeal to in order to grow its share isn’t that many. Finally, he noted that Apple has almost $25b safely in the bank, and zero debt.

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Comments

1

There is nothing to compare, RIM are business machines, iPhone is a simple phone. Nokia sells 10x times of this and nobody cares.

Posted by Olek on October 21, 2008 at 6:27 PM (CDT)

2

I have not looked at the numbers but if they are true as reported by Apple, then it is even more impressive that iPhone sales have outdone RIM sales if for no other reason then there is is only one model of iPhone on only one carrier per market in most areas, but several versions of Blackberries on several carriers in those same regions.

Posted by TosaDeac on October 21, 2008 at 8:11 PM (CDT)

3

Its not that impressive, the iPhone is hyped beyond belief. Its demographic is towards teenagers/young adults who would likely upgrade just to fit in with the crowd or just simply upgrade to the “latest, greatest” device.

Blackberry however appeals to business, these people don’t have impulses to go out and buy the latest black berry to “fit in”.

Posted by paranoidxe on October 23, 2008 at 9:20 AM (CDT)

4

You can no longer separate Dingleberries and iPhones into different categories.  With the software release that enabled iPhones with full Microsoft Exchange capability, more and more businesses are switching from RIM to Apple (mine included).  The iPhone has internet capabilities that Dingleberries are crippled by.  For our company, this includes the inability to view ArcIMS sites.  Just one of many reasons why our company is switching to iPhones.

Posted by Rob B on October 23, 2008 at 3:01 PM (CDT)

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