Ronnie05's Blog

iPhone 3GS: Blockbuster yet again!

Posted in Mobile Devices and Company Updates by Manas Ganguly on July 7, 2009

nb20080306a2aFrom the first assessment, Apple’s iPhone is a runaway hit worldwide.  earlier today based on a new set of numbers from Japan.

An analyst report from Piper Jaffray analyst Gene Munster’s, includes the incredible fact that 38 percent of 3GS customers were upgrading from the original iPhone, validating the idea that the only way for a customer to upgrade from an iPhone is to buy another iPhone.

The report of iPhone 3G S sales is based in part on observations of Apple and AT&T stores in New York and Minneapolis, estimates of the rates of sales, the hours of operation and the number of units supplied to each store, as well as surveys of 283 attendees.

A few pointers to the success of iPhone 3GS are as follows:

  • Roughly one million iPhones sold worldwide in three days, despite activation problems;
  • 400,000 sold in the United States, 250,000 in the United Kingdom, an average of 18,000 in 19 other countries;
  • 380,000 sold in the first two days (compared with 270,000 in a day and a half last year);
  • Sales were actually slowed by the approximately 15 minutes it took to activate each phone (sales at Apple stores last year took about 1 minute each);
  • Two-thirds of customers purchased the 16 GB iPhone (compared with last year, when 91 percent bought the top-of-the-line 8 GB model);
  • 39% of customers were PC users (versus 25 percent last year);
  • 38% of customers in the United States were new to AT&T, as opposed to 52% last year.

Why is Apple dominating the market like this? Quoting Giff Gfroerer, president of text message vendor i2SMS:

“what the iPhone did was give the normobs [normal mobile users] of the world a simple phone that they could understand. The [Nokia] N97 might have the best technology, but you need a Ph.D. to operate it.  The iPhone gives the end user what they need in a very simple format and is not concerned with functionality the normob does not need.”

A simple axiom that Apple seems to be following is to give people what they want and they might buy it. In droves. Pretty simple concept. Hard to execute. (If the Nokia and Apple examples are considered)

What is hugely encouraging for Apple is that a survey of 2300 retail stores reveals that Apple has cleaned up in the smartphone market in Japan. This is the first time, when the iPhone craze has crossed the Pacific from the US shores.

While there are some doubts on iPhone’s capability to sustain the Japanese response to the iPhone 3GS (owing to the fickle nature of the industry and the faashion conciousness of Japan), There is no doubt that iPhone could prove popular (if not the best seller) in the internet savvy Japan. They may have to tweek it a bit here and there, but the makings of succesful product are there.

Already iPhone has beaten Nokia in the leadership of mobile ads.

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  1. […] ronnie05 wrote an interesting post today on<b>iPhone 3GS</b>: Blockbuster yet again! « Ronnie05's BlogHere’s a quick excerpt […]

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