Steve Jobs Had a Very Good Launch
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The figures are not exact. Apple can’t and won’t divulge precise sales figures. However, by any standard measure, Steve Jobs had a very good launch.
Let’s do the math… David Bailey, an analyst for Goldman Sachs, estimates that seven hundred thousand units were sold. The number differs with various sources but seven hundred thousand is a consensus figure. The price of the iPhone varied, depending on the model. Therefore, for the sake of easy calculation, let’s take the average sale at five hundred and fifty dollars. The estimated sales would be (700,000 X $550.00 = $385,000,000.00) three hundred and eighty five million dollars - give or take several million, here or there.
That is a staggering cash flow for a company. The media assisted by having iPhone news constantly in print and online publications. Of course, Apple was masterful in its slow trickle of information, up to launch date. Apple has a superb marketing department, which relied on media coverage as much, if not more so, than the planned advertising campaign. So, issues like battery problems and activation problems aside, the iPhone had an excellent cash response for Apple.
Credit goes to Apple’s marketing people for creating the social ‘buzz’ before product launch. However, with Mr Jobs’ hands-on management style, there is no doubt that who was the ‘maestro’.
Catherine Forsythe
Tags: apple, iphone, steve jobs, sales, cash flow, advertising, marketing
4 Comments
University Update - Steve Jobs - Steve Jobs Had a Very Good Launch
July 9th, 2007
at 9:58pm
[…] YouTube Link to Article steve jobs Steve Jobs Had a Very Good Launch » Posted at DogReader on Monday, July 09, 2007 [ Author Avatar] The figures are not exact. Apple can’t and won’t divulge precise sales figures. However, by any standard measure, Steve Jobs had a very good launch. Let’s do the math… David … , iphone, steve jobs, sales, cash flow, advertising, marketing Related Articles: Gregg Popovich View Entire Article » […]
Harry Chann
July 11th, 2007
at 11:59am
I just dropped my iphone (which I do sometimes with my cellphone) and the glass cracked. Is there any place I can have the glass replaced, hopefully cheaply? Thanks.
miss_lain
July 11th, 2007
at 1:34pm
“The estimated sales would be (700,000 X $550.00 = $385,000.00) three hundred and eighty five million dollars - give or take several million, here or there.”
You are missing three zero’s on your total dollars. If we assume that it cost Apple about half what they charge to make the iPhone, it’s a nice profit. Sure, Apple started the rumors, but the press took it and ran with it. They are almost as much to blame as Jobs or anyone in Apple. Strokes of genius or madness, such as “oh, we will have glass instead of plastic,” and “oh, we extended the battery lilfe” press releases were definitely Apple’s mind bending talents at work. They’re good at that stuff.
forsythe
July 11th, 2007
at 1:42pm
Thanks Miss Lain - I corrected the error. I appreciate your letting me know.
Harry - yikes! I hope you can have it fixed for a reasonable price.
Catherine