How Well Will the iPhone Do?
The iPhone is scheduled to come out at the end of the month, and hopes to capture about 1% of the cell phone market for 2008. What exactly does this figure mean?
It’s amazing how much 1% can turn out to be. 1% of the cell phone market equals 10 million units. If only 1 million units are sold in the first year, this will add over 500 million dollars of gross revenue for the company. This, in turn, is likely to increase the share price due to shareholder confidence.
If Apple wants to sell a million units by the end of their fiscal year (September 30), that equals about 11,000 units each day. Seeing as Apple is expecting to move a million units each month of 2008, selling a million in the first three months shouldn’t be difficult.
