Iphone available at 2000 stores at launch - iPhone 3G

wjp09 · 05-18-2007, 07:13 PM

iPhone to be available at 2000 store fronts on launch

By Katie Marsal
Published: 11:15 AM EST Apple's inaugural mobile handset, iPhone, will be available for sale at 2000 retail store fronts when it goes on sale for the first time next month, putting the device within reach of most US households.

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That's just one of the info morsels Bear Stearns analyst Andy Neff came bearing after a meeting with members of Apple's executive team on Wednesday.

During the sit-down, Apple retail chief Ron Johnson and Director of Mac Product Marketing Tom Boger informed the analyst that those store fronts would consist exclusively of Apple and AT&T retail stores. (That breaks down to approximately 160 U.S.-based Apple outlets and roughly 1840 AT&T wireless boutiques.)

"Apple affirmed its goal of June release for iPhone and expressed confidence in meeting its target of 10 million unit shipments in 2008 given iPhone's superior user experience, which Apple referred to as 'transformational,'" Neff wrote in a summary of his discussions.

He added that, in addition to iPhone’s revolutionary touch interface and intuitive software capabilities, Apple is focused on differentiating iPhone from the rest of the pack by improving every facet of its user experience, including at the point of sale.

In regards to its retail store initiatives, Apple noted that it currently operates 181 stores worldwide (161 in US and 20 international) and will continue to expand its store presence, although at a measured pace that will be based on the availability of key real estate locations.

"In addition, for international store openings, Apple noted that its strategy is to focus on regions with high Apple installed base first (i.e., Japan, UK, etc.) and then expand to other regions," wrote Neff. "As part of its multichannel strategy, Apple noted that it is expanding its store-within-store (staffed by Apple employees) at Best Buy from 50 to 200 as Apple sees it as another way to reach its customers."

While there are concerns about potential execution issues resulting from Apple's rapid growth and broadening product portfolio, the Bear Stearns analyst said it appears to him that the company is managing its growth by leveraging resources across the company. For example, he said, the company has adopted the Leopard operating system for iPhone as well as Macs, which minimizes the strain on resources.

The Cupertino-based firm has laid out a "very selective" product roadmap, he added, with a particular emphasis on the timing of introductions and what products it has decided not to pursue. In fact, the analyst said, Apple noted that the coordination and close cooperation between different groups enable the company to provide superior user experience to customers.

Neff, who is maintaining all of his current estimates on Apple, holds an "Outperform" rating on shares of the company with a price target of $143 per share. His meeting with Apple executives follows a similar sit-down between UBS analyst Ben Reitzes and other members of the Apple's leadership earlier in the month.

iphonenut · 05-18-2007, 07:29 PM

that's all fine and dandy. However, I think the bigger concern or question for me is how many iphones are each of those stores going to have on the release date.

If 2,000 stores have iphones but they each only have a handful each then we have a problem a la the Wii and PS3.

I guess i'm just being a little paranoid...my biggest fear is that there won't be enough and i'll have to wait another month...or...shudder...LONGER. I hope that doesn't happen.

BoxKrait · 05-18-2007, 07:39 PM

When I went to my local Cingular store, or is it ATT store, they said something along the lines of each store will get a different amount based on how many names are on the waiting list.

I hope they email me when they know when they are going to recieve them.

iphonenut · 05-18-2007, 07:44 PM

Quote:

Originally Posted by BoxKrait

When I went to my local Cingular store, or is it ATT store, they said something along the lines of each store will get a different amount based on how many names are on the waiting list.

I hope they email me when they know when they are going to recieve them.

I'm not calling you a liar or anything but what they told you doesn't really agree to what the AT&T internal memo stated re: pre-orders and taking lists.

joe · 05-18-2007, 08:31 PM

Ok, so if we want 50 phones (avg) at each store, that's 100,000. Can they have 100K on release day? That seems kinda high. What about 10 per store (20K)? That sounds reasonable.

iphonenut · 05-18-2007, 09:13 PM

Quote:

Originally Posted by joe

Ok, so if we want 50 phones (avg) at each store, that's 100,000. Can they have 100K on release day? That seems kinda high. What about 10 per store (20K)? That sounds reasonable.

Assuming 100,000 on release (i really hope that isn't true) i don't think that every store would get the same number..i.e. apple store gets just as many as the corner cingular store. so i'm sure there will be some disparity when it comes to size/foot traffic.

In the end, though, only 100,000 would be a shame...they HAVE to have more than that right??

ebrunn · 05-19-2007, 10:33 AM

Your best bet to get one will prolly be at a brick and mortar Apple Store. Each store will prolly have at least a 100. Their are only about 160 Apple Stores to begin with so.....

Cantwait4iPhone · 05-19-2007, 05:43 PM

My guess would be that there won't be quite 100k at launch, but we can only hope. The wait list at my local Cingular store was stopped at 50 people, according to them, so I think my best bet will probably be one of the two Apple stores in my area. They will probably have more, and it'll be more fun to wait there. My question is, though, how they will do the service and stuff if you buy it at the Apple store. You will probably be able to do it at the Apple store or you will have to go to the Cingular store afterwards. Any news on this?

robhon · 05-19-2007, 06:17 PM

Quote:

Originally Posted by joe

Ok, so if we want 50 phones (avg) at each store, that's 100,000. Can they have 100K on release day? That seems kinda high. What about 10 per store (20K)? That sounds reasonable.

Coming from a manufacturing background I can tell you that 100K is not, by any stretch of the imagination, a large order. The launch window will be the highest short term volume of sales they will experience for the product. I'd be surprized if they launch with anything less that a million units. More likely it'll be closer to 2 million +.

I mean, Apple has to sell nearly a million a month to just meet their target. And targets are ALWAYS set with the intension to beat them.

Cantwait4iPhone · 05-19-2007, 06:30 PM

Quote:

Originally Posted by robhon

Coming from a manufacturing background I can tell you that 100K is not, by any stretch of the imagination, a large order. The launch window will be the highest short term volume of sales they will experience for the product. I'd be surprized if they launch with anything less that a million units. More likely it'll be closer to 2 million +.

I mean, Apple has to sell nearly a million a month to just meet their target. And targets are ALWAYS set with the intension to beat them.

Hmm... interesting. Good to hear, but I expected less. We shall have to wait and see, but you know more on the matter than I do.

So let's say there are 1.5 million at lauch, and 2k stores receiving them, that would be an average of what, 750 per store?

That doesn't sound right, what math did I do wrong?

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