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Apple won't reveal iPhone 7's first-weekend sales numbers

By Shawn Knight
Sep 8, 2016
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  1. Apple on Thursday said it would not be releasing first-weekend sales figures for the new iPhone 7 and 7 Plus, ending a tradition several years in the making.

    In a statement to Reuters, Apple spokesperson Kristin Huguet said that as they have expanded distribution through carriers and resellers to hundreds of thousands of locations around the world, they are now at a point that they know even before taking the first pre-order that the iPhone 7 will sell out.

    The initial sales figures will be governed not by demand, but by supply. As such, Huguet adds, they’ve decided that it is no longer a representative metric for investors and customers.

    That a valid reason although it’s likely not the only factor contributing to Apple’s decision.

    Last week, KGI Securities analyst Ming-Chi Kuo said in research note that mass production of the new iPhones did not begin until mid-August which is later than expected. The reason for the delay, the analyst continued, is that Apple’s supply chain faced issues ramping up production due to the challenges of waterproofing the new phones.

    Market saturation and the fact that some people are holding on to their phones longer than the usual two-year upgrade cycle – something Apple is partially responsible for this year considering the iPhone 7 doesn’t feature the major redesign that a non-S model typically affords – is also contributing to cooling sales.

    By withholding first-weekend sales, Apple is protecting itself from the negative press that would come if sales aren’t through the roof as they have been in past years, regardless of the reason. It’s the wise thing to do from a business standpoint but it means analysts and investors will have to wait until the next quarterly report to gauge initial interest in the iPhone 7.

    Permalink to story.

     
  2. BSim500

    BSim500 TS Guru Posts: 198   +272

    LOL. Told you so.
     
  3. VitalyT

    VitalyT Russ-Puss Posts: 3,149   +1,424

    When the ship's captain refuses to tell you how many lifeboats they've got, it is a message in itself.

    I'm just gonna sit back and enjoy watching Apple doing the Titanic thing...
     
  4. GreenNova343

    GreenNova343 TS Member Posts: 33   +18

    So...

    Apple doesn't plan on telling us how many they'll end up selling...

    But they're convinced that they'll sell out 'like always'...

    Because they already know how many units have been produced...

    Yeah, it's become "meaningless"...but the only reason it's a foregone conclusion is because Apple set it up that way. They've basically decided, "we're going to adjust our production so that we only have X amounts of units available for this first weekend, because we've alreay determined that we can sell at least X amount of units for the weekend, so that will guarantee a sell-out weekend".

    Any other company selling consumer goods -- TV, PC, automobile, whatever -- that did that would be fact-checked & called out as "cooking the books" were they to claim that they'd "sold out" of their product, because it artificially inflates the apparent appeal of the product (versus, say, producing 2X units but only selling X).

    Hopefully the general public is smarter than that...
     
  5. bmw95

    bmw95 TS Addict Posts: 103   +51

    lol yup. They definitely have a lot to learn when it comes to things that don't go as well as they had hoped. Pretty sure a lot of companies have learned that pretending the public doesn't know what's going on makes things waaaay worse. Actually many still haven't learned that lesson xD, but I guess we can say Apple is in that pile now, or again ^^.
     
  6. Adhmuz

    Adhmuz TechSpot Paladin Posts: 1,648   +521

    "...Appleā€™s supply chain faced issues ramping up production due to the challenges of waterproofing the new phones."

    Wait I thought by removing the 3.5mm jack it would make it easier to waterproof the device, so essentially Apple took the easy road and still can't make it over the smallest of hurdles by having only on physical port on the device.

    The only reason I can think of for them to not release the sales figures is because they didn't produce enough and that number just can't be larger than the previous generations launch. It could be intentional, it could be down to supply chain issues, either way you look at it it's not good news for Apple, hence the new tactic of just not releasing the sales numbers after the first weekend's batch runs out, once they feel comfortable with how many have been sold in the following weeks they will tell us it was a huge success and it's the best selling device to date...
     
  7. p51d007

    p51d007 TS Evangelist Posts: 909   +384

    Anyone see a frenzy of people standing in line to get one?
    NOPE
     
    Phr3d likes this.
  8. Raoul Duke

    Raoul Duke TS Guru Posts: 930   +354

    Trying to avoid a potential big stock hit. Those panicky investors LOL
     
  9. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    Kind of reminds me of when a movie comes out that forbids reviews to be released until after it's first weekend... you always know "that's the movie I don't want to see!!"...
     

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