Apple: When Cracking is Loving

Posted on April 24, 2008
Filed Under China Business, China Distribution |

Computer Reseller News reports:

After announcing its second quarter earnings on Wednesday, Apple COO Tim Cook told analysts and investors that the company expects to hit its target and sell 10 million iPhones this year, and that unlocked iPhones are just evidence of the phone’s popularity.

“We’re confident on hitting the 10 million for the year,” said Cook.

…”At this point both inventory in our stores and our channel inventories are currently low,” Cook said. “We believe the reason is that there are more phones being bought out there with the intention of unlocking, which remains a significant number.”

Cook would not say how many unlocked iPhones Apple believes are out there, but did say that the company thinks they’re evidence that its on the right track and that there is global demand for the iPhone.

“It’s very difficult to come up with a very precise estimate of it, but we do believe the number continues to be significant. Our view continues to be that this is a proxy for the world-wide demand for the phone and our focus is very much on rolling out to more [geographies] and we’re on target to roll out into more countries in Europe and to enter Asia later in the year,” Cook said. Sales of the iPhone hit 1.7 million for the quarter, and Cook said Apple’s expansion into European and Asian countries will help it hit its target.

Demand is certainly high in China, with most computer malls littered with the little iPhone boxes. Once Apple sorts out a deal with China Mobile sales are certain to expand as legally imported and licensed iPhones will be cheaper than the ones available on the gray market.

Kudos to Apple for coming out and describing the iPhone gray market for what it is: a leading indicator of demand.

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