Can't Get Over That iPhone

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.

Of iMacs and Apps

Apple introduced new iMacs with larger screens. Resellers reportedly expect demand for these computers to be strong.

"With compelling new products like the new Macs, I think Apple will continue its share gain in the PC market even though it's not currently playing in the fastest-growing segment, which is netbooks," Broadpoint AmTech's Marshall said. With Cupertino having about 5 percent of the global PC market, Marshall thinks it has plenty of room to grow.

Meanwhile, the iTune Apps Store, which is already the clear leader of its market, is running away from the competition. There are about 101,500 apps in the store, almost 93,000 of these are active, and there are more than 22,000 unique app publishers, all according to the tracking Web site 148apps.biz.

That puts the iPhone in a secure position, as a wide availability of apps enhance the mobile phone experience for many consumers. They are such an important factor in handset sales that wireless phone carriers, handset manufacturers and even Google and Microsoft are setting up their own app stores.

Another Winner for Cupertino?

Apple will likely ship 2.2 million iTablets in 2010, according to an estimate by Broadpoint AmTech analyst Brian Marshall, though he categorized that forecast as "conservative." Shipments should begin in or around March 2009, he expects.

The iTablet's sales will be between US$1 billion and $2 billion for 2010, he estimates. "I don't think it will be huge," he told MacNewsWorld. Total sales for calendar 2010 will exceed $53 billion, he said. That will be 12.8 percent higher than Marshall's estimate for calendar year 2009 sales, which he pegs at $47.2 billion.

For Cupertino, perhaps, sales of $1 billion to $2 billion don't mean much, but any other company would be happy to have a product that performs that well in the first nine months of its introduction.