iPhone Sales Numbers Not Adding Up



iPhone Sales Numbers Not Adding Up
January 28, 2008
By: Christopher Meinck
Last week, both Apple and AT&T reported their earnings along with iPhone sales data. Apple reported 3.7 million in iPhone sales worldwide, while AT&T had a paltry 2 million iPhone activations leading many to wonder as to why the gap between the two.
Analysts have suggested that sales in Europe account for roughly 300,000 and 400,000, still leaving a gap of 1.3 million iPhones that have yet to be activated. This has led many to suggest the remain iPhones were purchased with the intention of unlocking. If true, that would mean that almost 40 percent of iPhones are being unlocked for use on a network other than AT&T.
Prior to the iPhone, sales of most cellphones required a customer activate their phone with the carrier before leaving the store. The iPhone does not require activation at the store level, but rather through iTunes. If these numbers are even close to correct, then AT&T is not generating revenue on almost half the iPhones sold in the US. Apple has repeatedly patched the iPhone software to prevent hackers with Steve Jobs referring to it a "cat and mouse game". Each release has broken unauthorized third party applications and blocked potential exploits. The numbers suggest that Apple may not winning the game. According to CNNMoney, Apple's CFO Tim Cook spoke briefly about the issue of unlocked iPhones during their conference call indicating the number is "significant" going on to say, "we're unsure how to reliably estimate the number."
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