Apple Q408 results out: 6.9m iPhones sold, record Mac sales UPDATE: Steve answers analysts' questions
By Nilay Patel 
posted October 21st 2008 5:09PM
posted October 21st 2008 5:09PM
Hey, turns out that people seem to like a little thing called the iPhone 3G. Apple just announced that it's sold 6.9 million of 'em during its financial fourth quarter, beating out the 6.1 million total first-gen iPhones sold in the previous five quarters -- and beating RIM's total sales this quarter, which Apple seems excited about. Of course, that represents worldwide availability in 51 countries vs the initial US-only launch, so it's not totally unexpected that the numbers are up, but it means that Apple's hit its goal of 10 million iPhones sold in 2008, which should cause some celebration in Cupertino. Apple also seems pleased with Mac sales, which are up 21 percent over a year ago to 2.6 million -- more than it's sold in any other quarter ever. All that combines with 11 million iPods sold for a total profit of $1.1 billion on revenues of $7.9 billion -- that's a lot of scratch. Still, times are tough, so Steve, do you have a seemingly-cautious statement about the US economy that also doubles as a smug shot at your competitors? "We don't yet know how this economic downturn will affect Apple. But we're armed with the strongest product line in our history, the most talented employees and the best customers in our industry. And $25 billion of cash safely in the bank with zero debt." Yeah, we thought you might.PS.- The analyst call just finished with a special appearance from Steve Jobs, who took questions. Head past the break for our semi-liveblog transcript of the good parts.
Update: Steve's on the call. He says that Apple has 5,500 apps in the iPhone App Store, and that Apple should sell its 200 millionth app tomorrow -- "unlike anything we've seen in our careers." He's calling Apple customers the "smartest, more product-aware customers in the market," and that economic hardships won't cause them to switch to cheaper machines, just delay their purchases, since "none of our competitors can deliver products in this class." In addition, Apple plans to invest and "innovate through the downturn" as it did the last time the economy went sour.
Update 2: Taking questions now -- Steve says that the iPhone could be considered an entrant into the netbook market, since it can browse the web (uh, sure), but that Apple's looking at the "nascent" netbook market and it's "got some interesting ideas there if it does evolve."
Update 3: Hitting harder on the price aspect of netbooks, Steve says, "We don't know how to make a $500 machine that's not a piece of junk, and our DNA won't let us do it." He also says that he thinks Apple TV will remain a "hobby" in 2009, and totally shot down a question about touch / tablet computing.
Update 4: That's it! In response to a question about different form factors for the iPhone, Steve said "Babe Ruth only had one home run, but he hit it a bunch of times," and that he didn't think software developers would want to target lots of different platforms -- probably indicating that the current iPhone design isn't changing for a while. He also said that he didn't think Apple's competitors really understood the idea of a phone as a "software platform" -- a pill that requires a pretty big dose of RDF to swallow, since both Google and Microsoft probably beg to differ.
* All free apps count as "sales".
* Better double check that claim of "and beating RIM's total sales this quarter". Apple has a tendency to only consider RIM's RETAIL sales, which are only a fraction of the total sales which include enterprise sectors.
It appears the MS astroturfers already have. sigh
So, everyone is all gaga about how Apple sold 6.9M iPhones in the last quarter - way more than the same quarter last year. Of course, what people keep missing is that this last quarter is both the first quarter the iPhone G3 has shipped - at 1/3 the price of last year's model, and to 26 countries instead of just the US. But hey - they sold more than RIM (barely - and ignorin that RIM has been selling phones for HOW many years now - while this is Apple's second phone ever?) :)
"[…] probably indicating that the current iPhone design isn't changing for a while. He also said that he didn't think Apple's competitors really understood the idea of a phone as a "software platform" -- a pill that requires a pretty big dose of RDF to swallow, since both Google and Microsoft probably beg to differ."
Not to be a pain or anything, but let's see either Google or Microsoft sell their phone platforms as well after being only 15 months in the market. Maybe _then_ we'll bother with what Google or MS have to say about phone software platforms.
Took MS more than 5 years to get there, and Google has yet to make the Android platform anywhere near as successful as the iPhone platform. 15 months from now we'll be able to tell if Google "gets it" as well as is suggested by Nilay, but I'm not placing any bets on that myself. Consistent environments are much more pleasant for developers; see also console games vs. PC gaming.
What is more amazing is that Apple have gone from nothing to the third largest mobile phone manufacturer in the world in 18 months or so - that and they have done it by offering one phone. The second largest manufacturer are well within their reach - this is not just in smart-phones but in all phone manufacturing.
Outstanding.
smart customers???
honestly unless you are a graphic designer a Apple computer is a waste of money and nothing more than a status symbol. The people who are buying macs because it is fashionable are why we are in the economic rut we are in. These same people took out 300-500k mortgages while making 30k and are now crying about it.
I would buy a Iphone if I could get flash with it. Without flash mobile internet is worthless. The applications are ok but I really can't get too excited about Cromag Rally.
95.8% of mobile Engadget readers might beg to differ with you.
95.8% of mobile Engadget readers might beg to differ with you.
pwn'd
ok apple does make a pretty good extremley over priced product but.... so do i for maybe a third the price and mine dont need fixen. any way this is supposed to be about the i phone wich is a nice kids toy id recomend you buy it for your 10 year old as for a phone that is for a SMARTPHONE market it has nothing on the fricking palm lol not that i like palm im just saying yea the browser is soooo cool but the camera sucks and not to mention att eats balls . my chocolet can do it better with out the web. but lets see THE LASRGEST MOST RELIABLE NETWORK(NOT AT&T) VERIZON. NEEDS NOT WI-FI IN ITS PHONES SOMTHING CALLED SIGNAL STRENGTH AND BANDWIDTH. THE BIGGEST MOBILE PHONE FOLLOWING IS NOT APPLE YEA THEY SOLD MORE BUT THAT WAS TO APPLE FANBOY'S WHO SLEPT OUT SIDE FOR A FUCKING PHONE COME ON MAYBE ID DO THAT FOR A CHANCE TO PERSONALLY KISS VIDA GERARAS ASS BUT NOT FOR A PHONE. YOU FEEL THAT? FEELS LIKE RAIN! HMM MUST BE A STORM COMING AND FAST. CRACKBERRY MY FREINDS HAS A WAY BIGGER FOLLOWING (PHONE WISE) CANT WAIT TILL IT COMES OUT AND SHUTS UP IPHONE FANS caps lock off.
another 6.9mil iphones means another good year for fleabay
Only those who experienced the Mac (and I dont mean powering up the Mac) knows how good a Mac is compared to anything else in the market. Yes it does cost a bit more, (around $250 per level of the same tech) but somehow or the other, when it comes to performance, that same apparently overpriced Apple will blow off a much high powered PC anytime!!!
About the iPhone, it is good. Damn good! Compared to anything that is out in the mobile phone market!! However, Apple needs to more focused towards the features for iPhone mainly because there are way too many competitors out in the market. Yes the Zune Zucks! but like I said, Apple has bigger things to worry about and that's the overall, more fairly priced, pda/smartphones/mobile phones. None can match the iphone in terms of features but surely, regardless of everything, they still need to develop it more because it still does not give you the value for the extra cash spent which Mac does.
I love my iPhone 3G, but I got an MMS last night and had to take some ribbing when I had to explain that Apple and AT&T have deliberately crippled that feature in it. The Instinct, G1, and Rave have MMS of course.
Oh well at least Visual Voicemail and MobileMe syncing are cool...
I own an iPhone 3G and it's perfectly capable of what it's supposed to.. One thing to remember Is to choose the product " you" like... People will love apple becAuse it's uniqe in many ways and u can get the information regarding the features in hell lot of places..
Only thing that makes me worried about apple is there is no one out there to atleast match the status of being a competitor...