More Stupid iPhone Press Coverage: “Disappointing Sales”

Apple stock took a 4% hit today because their carrier partner, AT&T announced they only activated 146,000 iphones in the last two days of June

Here is a fine friendly clue. The iPhone didn’t go on sale until 6pm eastern, 3/4 of the way through the first of those days two days. Furthermore, the optimistic estimates from various stock analysts were for the whole weekend, which included Sunday, July 1st. Finally, AT&T had trouble servicing iPhone activation requests over the weekend, so some significant number of iPhones probably weren’t activated until JULY, which would put it after the quarter AT&T was reporting earnings on.

In its second-quarter earnings report Tuesday morning, AT&T said it activated about 146,000 customers who bought the iPhone during those two days.

This number would not include buyers who purchased the device with the hopes to re-sell it over venues such as Craig’s List and eBay. However, the figure seemed to worry investors who had been primed to expect much larger numbers.

Before Tuesday, analysts had been projecting opening-weekend sales for the iPhone of between 200,000 and 400,000 units.

A few projections reached as high as 500,000 units, with analysts citing long- lines at stores and initial inventory figures for the device.Watch interview with Piper Jaffray analyst predicting initial iPhone sales of 500,000 units.

I guess “reporters” need something else to do now that they’ve beaten to death the whole “the iPhone really costs $2000,” because they cleverly included the cost of a two year service plan. Never mind that most iPhone buyers probably already have cell phone service, which would probably run them $1000 over two years anyway. That leaves us with $500-600 for the iPhone, and $480 for the incremental cost of the data service.

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