iPhone - The Apple Of Apple’s Eye

A recent survey reinforces our view that Apple Inc.’s (AAPL) iPhone 3GS is extremely popular in the smart phone market. Customers appear to be hugely satisfied with the enhancements incorporated in the new model. The survey came up with results, which indicate that 99% of respondents are satisfied with their iPhone 3GS, 92% are more than satisfied and around 57% are thinking of buying the product for somebody else. Around 41% of buyers have upgraded from the older versions.

Recently, Apple launched its iPhone 3GS for $199 via its exclusive carrier AT&T (T) with new features, including twice the speed and performance of the iPhone 3G. The new iPhone 3GS reached the 1 million unit mark in just 3 days. The product is currently available in 18 countries.

Apple was a late entrant into the smart phone market, with companies like Nokia (NOK), Research In Motion (RIMM) and Palm (PALM) already firmly entrenched. However, the company made very rapid progress, wresting share from the existing players. The company sold over 13 million iPhones in the first nine months of fiscal 2009, a 182.0% increase from the comparable year-ago period. The strong sales growth was driven by the iPhone 3G, which helped Apple beat Research In Motion’s BlackBerry devices, as well as many other competitors.

In the third quarter of fiscal 2009 ended June, iPhone 3G and iPhone 3GS were the major growth drivers for the company. Revenues from iPhone handset sales, accessory sales and carrier payments were $1.69 billion for the third quarter, compared to $419.0 million in the year ago quarter, an increase of over 300.0%. The revenue generated through iPhones sales during the quarter was $2.9 billion. After considering the abovementioned factors, we believe that iPhone 3GS will be a cash cow for Apple in the days to come.

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Comment by Partners in Grime

2009-08-18 12:20:17

It just keeps getting better and better.

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