The initial reports trickling out of the U.K. and Germany last week painted a decidedly lackluster debut for the iPhone, especially when compared to the stateside launch in July. But that hasty conclusion is starting to be reevaluated in light of some new carrier data and increasing attention to things other than sales numbers.
For instance, during O2's third quarter conference call on Monday, the company's mobile chief Peter Erskine told listeners that his company, along with its retail partner Carphone Warehouse, managed to move "tens of thousands" of iPhones since Friday, characterizing the phone as "the fastest-selling device we have ever seen." In fact, O2 said it activated 8,000 handsets during the first day of sales, some 5,000 more than it had initially estimated.
Things unfolded in much the same way in Germany, with T-Mobile managing to move 10,000 iPhones on launch day, according to Dow Jones. Again, nowhere near the 200,000 sold here in the U.S. during the first day, but not exactly "flop" worthy either.
Indeed, it's not just iPhone sales numbers that indicate success, as many have already pointed out. Take, for example, O2's new customer data, also released this week. According to the carrier, nearly two thirds of those who purchased the Apple handset were new customers. And despite the difference in U.K. and U.S. sales numbers, the iPhone is undoubtedly driving customers to the carrier just as it has done here. AT&T, for instance, reported a net gain of 2.0 million wireless subscribers in the first full quarter since the introduction of Apple iPhone, the highest third-quarter subscriber increase in the company's history.
In the end, whether European iPhone sales ever match those here in the states may be irrelevant. PiperJaffray analyst Gene Munster believes the simple fact that the phone is now available in the U.K. (and possibly soon in Spain and China) will do much to help Apple meet its stated goal of selling 10 million iPhones by the end of 2008. There's even striking new evidence that the iPhone is actually becoming its own category of device. As Compete.com's Elaine Warner observes, that can only mean more money for Apple.
Blackfriars' Carl Howe agrees saying, "Apple has data to prove that it is driving traffic and shoppers to mobile phone operators. And if that doesn't keep them in a class of their own with consumers next year, it certainly will with those operators." Of course, more operators means more international deals. More deals, more money. Flop? I think not.
Photo via Bulgariahitech.com
