Apple hails 3G iPhone's 'stunning weekend'
Release Date: 18th July 2008From: http://www.ft.comBy:Kevin Allison keyword:3G iPhone
Apple sold 1m 3G iPhones during the handset's opening weekend, the computer maker said yesterday, as customers in 21 countries rushed to get their hands on the new version of the popular touch-screen device.
Steve Jobs, chief executive, hailed what he called a "stunning opening weekend" for the new device.
News of the performance sent Apple's shares up 1.1 per cent to $174.52 in New York.
Apple's announcement came in spite of software problems that hit the 3G handset's initial launch on Friday, after a flood of new users overwhelmed Apple's iTunes servers, leaving many customers unable to activate their handsets.
In spite of these problems, the handset's opening weekend should put Apple on track to pass its goal of selling 10m iPhones by the end of the year, said Tom Smith, an equity analyst at Standard & Poor's.
"It's a strong number for an opening," Mr Smith said. "Clearly, there's a wave going, and Apple should be able to make its target, if there was any doubt."
While Apple's 1m sales figure for the new iPhone was impressive, it represented only a fraction of the total number of mobile handsets sold around the world each year.
Nokia, the world's biggest handset maker, sold 115m mobile handsets in the first quarter, according to the latest figures from Gartner, the market research group. Total handset sales were 294m in the period.
The 3G phone's launch comes as Apple is attempting to turn the iPhone into a new type of platform with appeal to both consumer and corporate users.
With the launch of the 3G device, Apple and its partners have tried to remove barriers that limited the appeal of the original iPhone.
Most significantly, Apple and its mobile partners have abandoned the relatively high upfront price in favour of the subsidised price that is prevalent in Europe and the US.
The result is a faster handset available for $199 in the US with a two-year contract - a fraction of its original $499 price tag.
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