Demand for iPhone Less than Predicted

Despite all the iPhone hype, newly released Q2 data from the Strategy Analytics ProductTRAX(sm) program indicates that only 250,000 iPhone units were sold to US consumers through the combined AT&T and Apple outlets during the last 2 days of Q2, many fewer than popularly predicted. Additionally, only 146,000 iPhone consumers chose to—or were able to—activate those devices upon purchase.

“Though commanding significant attention during its launch, the iPhone will see its greatest impact on market share in subsequent quarters,” according to Barry Gilbert, Vice President. Mr. Gilbert adds, “To make the top ten list of mobile phones sold, the iPhone will have to move approximately 600,000 units in Q3.”

Currently, the top selling handset in the US is Motorola’s RAZR V3m, which sold nearly 1.4 million units in Q2, down from approximately 2.2 million units in Q1 according to ProductTRAX(sm) findings. ProductTRAX(sm) research notes that the top 10 handset models account for approximately 25% of total sales in a typical quarter.

David Kerr, VP of the Strategy Analytics Global Wireless Practice, notes, “It comes as no surprise that early profiles of iPhone buyers indicate males ages 20-29, with income over $100,000. The key questions will be to assess the average revenue per user (ARPU) generated by these purchasers, and to quantify the impact on churn of Verizon Wireless, T-Mobile, and SprintNextel from those purchasing iPhones. Strategy Analytics ProductTRAX(sm) captures these key metrics for iPhone buyers and buyers of the leading models in the US.”

About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies.