John Paczkowski

Recent Posts by John Paczkowski

iPhone 3GS Now Available in Federal-Reserve-Note Green

Demand for Apple’s iPhone 3GS, which topped one million handsets sold in its first weekend at market, has surpassed even the company’s presumably aggressive targets. Reporting earnings Tuesday, Apple (AAPL) said it sold 5.2 million iPhones in its third quarter and finally copped to something that’s long been apparent to anyone who’s been keeping an eye on its iPhone availability widget: Demand for the new iPhone 3GS is far outpacing supply.

“The iPhone 3GS is currently constrained in virtually every country we’re shipping in…and we’re working very hard to fulfill that demand,” Apple COO Tim Cook said during a conference call with analysts, adding that if the situation persists, some overseas launches might be delayed.

“In terms of affecting the country rollout, I believe the vast majority of the countries that we are selling the 3G in we will be selling the 3GS I think by the end of the fiscal quarter,” Cook said. “It may move a date by a few weeks here or there…I don’t want to predict today when supply and demand will balance. I know that it will not balance in the short term. And I don’t want to give a prediction, because as you can guess it’s very difficult to gauge the demand without having the supply there to find out what it is.”

Cook added that Apple expects to bring the 3GS to most countries where the iPhone 3G is currently available by the end of the September quarter.

One last point worth noting here: Voracious demand for the iPhone has made the device the second-largest contributor to Apple’s bottom line, surpassing the iPod for the first time. Revenue for the iPod for the quarter slipped 11 percent to $1.492 billion, down from $1.678 billion. Meanwhile iPhone revenue grew 303 percent to $1.689 billion, accounting for 19 percent of the $8.3 billion in revenue Apple reported in its third fiscal quarter.

Amazing to think the device debuted just two years ago. If Apple’s business model is as, as Steve Jobs likes to say, a stool that rests on three legs–the Mac, the iPod and the iPhone–then it’s increasingly becoming one that never wobbles.


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