Apple iPhone a Hard Nut to Crack – almost 7 Million Sold
The analysis of Apple Corporation performance in their fiscal 4th quarter of 2008 (different from calendar quarters) shows that the company is on a roll! During the 4th quarter that finished in the end of September, Apple has managed to sell 6.9 million iPhone units. That’s a good half a million more than RIM Blackberry did in their own fiscal quarter despite RIM offering various qwerty cell phone models for different tastes. It is very hard to understand customer behavior.
The success of iPhone is largely boosted by AT&T – America’s largest phone company. The soar in iPhone sales occurred after AT&T started to sell subsidized cell phones at $199. An unlocked iPhone can cost up to $600. In long-term it is much better to buy an unlocked phone because a subsidized iPhone ties the customer to a two-year contract with exaggerated monthly fees (to account for losses).
It seems that cell phone market is not affected by the credit crunch. The latest developments have increased Apple’s profits by more than 20% and AT&T by almost 6%. Good news has helped to boost share price of both companies, too.
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