Skip to main content

Apple May Earn $1 Billion With iPhone 3G Launch

Based on iSuppli's forecasts, it looks like Apple will take in a windfall when the smartphone hits store shelves Friday.

By Antone Gonsalves
InformationWeek


July 8, 2008 03:40 PM
While no official estimates are available, Apple could take in as much as $1 billion in the initial launch of the 3G iPhone, which is scheduled to go on sale in 22 countries on Friday.Apple on Tuesday said its U.S. stores would open two hours early, at 8 a.m. local time, for what will likely be the biggest product launch of the year for the computer and consumer electronics maker. AT&T (NYSE: T), the exclusive wireless carrier for the smartphone in the U.S, will open its stores at the same time.

iSuppli estimates Apple will need 1 million to 2 million iPhones on hand to meet initial demand worldwide. The market researcher also believes Apple makes $499 for every phone sold. Assuming that number is correct, the company could take in as much as $1 billion.

If Apple has a successful launch, then it will be well on its way to meeting its forecast of selling 10 million iPhones this year. Sales of the device have stalled since Apple unveiled its next generation iPhone June 9 at the Worldwide Developers Conference in San Francisco.

People willing to buy a two-year service contract from AT&T, the exclusive wireless carrier for the iPhone in the United States, will be able to purchase the smartphone for $199 for the 8-GB version and $300 for the 16-GB model. Those who prefer to buy the iPhone without a service plan will have to pay $600 and $700, respectively.

While the subsidized price may appear to be a bargain, buyers will actually be paying more for the device over the life of the service contract than the original model. That's because AT&T will be charging $75 a month for the same package that cost $60 a month for the slower original iPhone. Therefore, over the course of a two-year contract, people will be paying $1,999 for hardware and monthly fees versus $1,839, according to the San Francisco Chronicle.

Nevertheless, excitement among Apple enthusiasts is building. The first line for the iPhone started forming July 4 at Apple's flagship store in New York City, according to Fortune magazine.

Along with the iPhone, Apple plans to launch its App Store for the device the same day. The online store will offer third-party software that can run on the smartphone.

Comments

Post a Comment

Popular posts from this blog

Why Disasters Are Getting Worse?

By: AMANDA RIPLEY Thu Sep 4, 12:40 PM ET In the space of two weeks, Hurricane Gustav has caused an estimated $3 billion in losses in the U.S. and killed about 110 people in the U.S. and the Caribbean, catastrophic floods in northern India have left a million people homeless, and a 6.2-magnitude earthquake has rocked China's southwest, smashing over 400,000 homes. If it seems like disasters are getting more common, it's because they are. But some disasters do seem to be affecting us worse - and not for the reasons you may think. Floods and storms have led to most of the excess damage. The number of flood and storm disasters has gone up by 7.4% every year in recent decades, according to the Centre for Research on the Epidemiology of Disasters. (Between 2000 and 2007, the growth was even faster - with an average annual rate of increase of 8.4%.) Of the total 197 million people affected by disasters in 2007, 164 million were affected by floods. It is tempting to look at the line-u...
Post a Comment
Read more

How to boost your immune system

The old saying, “An apple a day can keep the doctor away,” may have truth behind it after all. Eating nourishing foods rich in certain vitamins can help your immune system fight off illness. We talked to registered dietitian Julia Zumpano, RD, LD for a closer look at these vitamins, what foods you can find them in and how they can help keep you healthy. Here’s what she had to say: Vitamin C is one of the biggest immune system boosters of all. In fact, a lack of vitamin C can even make you more prone to getting sick. Foods rich in vitamin C include oranges, grapefruits, tangerines, strawberries, bell peppers, spinach, kale and broccoli. Daily intake of vitamin C is essential for good health because your body doesn’t produce or store it. The good news is that vitamin C is in so many foods that most people don’t need to take a vitamin C supplement unless a doctor advises it. Vitamin B6 is vital to supporting biochemical reactions in the immune system. Vitamin B6-rich foods incl...
Post a Comment
Read more

Banks Boost Customer Fees to Record Highs

by Jane J. Kim Thursday, November 13, 2008provided by: theworldstreetjournal.com Bounced Checks, Overdrafts and ATM Use All Cost More; Penalizing Repeat Offenders Banks are responding to the troubled economy by jacking up fees on their checking accounts to record amounts. Last week, Citigroup Inc.'s Citibank started charging some customers a new $10 "overdraft protection transfer fee" to transfer money from a savings account or line of credit to cover a checking-account shortfall. Citibank had already raised foreign-exchange transaction fees on its debit cards and added minimum opening deposit requirements for its checking accounts. Over the past year, J.P. Morgan Chase & Co.'s Chase, Bank of America Corp., and Wells Fargo & Co. have boosted the fees they charge noncustomers who use their automated teller machines to as much as $3 per transaction. With all these changes, the average costs of checking-account fees, including ATM surcharges, bounced-check fees a...
Post a Comment
Read more