In this past quarter, Apple sold 7.4 million iPhones. The demand for the device stunned even Apple's own executives. "For much of the quarter, demand outstripped supply in many countries for the iPhone 3GS," Oppenheimer said at Monday's earnings call.
Apple has redressed the situation and has 2.4 million iPhone 3GS devices in the channel. That's still not enough for Oppenheimer. "I would've liked to have more because we're still short in some countries given the launch in China," he said. The iPhone goes on sale in China at the end of the month.
Apple is also opening up the South Korean market. The iPhone is selling in 64 countries, and Cupertino wants to expand that to more than 80 countries by the end of December. "The international market will be a huge component for Apple's growth in the future," Broadpoint AmTech's Marshall said.
International sales constituted 46 percent of this quarter's sales, the same percentage as last year. Look for Apple to work hard to push that figure higher.
The iPhone is very profitable for Apple, with an average selling price globally of about $600, Julien Blin, CEO and principal analyst at JBB Research, told MacNewsWorld. In markets like the United States, however, that price is greatly subsidized by the wireless carrier in exchange for a long-term user commitment. Apple has likely gained market share from Nokia , Blin said.
A slew of smartphones on the Android operating system is expected to hit the global market this year, but Apple remains unfazed by the competition. The iPhone has significant momentum, Tim Cook, Apple's chief operating officer, pointed out at the earnings call. Combine that with iTunes, the App Store and Apple's "very strong" product pipeline, and Cupertino can be confident in taking on anyone, he said.
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