PriceSCAN Blog

Apple says it sold 270,000 iPhones in the 48 hours after its release, while AT&T claimed it signed up 146,000 new iPhone accounts. Apple's number was at the low end of estimates; by contrast, some Street analysts were looking for around 700,000 units sold in this period. Now Apple pointed out that broad acceptance of the iPod was a multi-quarter affair, and excellent sales of that product and of the Mac tempered any disappointment.
Yet the disparity in results may say something more about what is and isn't working, not only for Cupertino but for Redmond as well. The less than ecstatic reception afforded Vista by the market ("Vista And The Vox Populi") has engendered a willingness among buyers to take a fresh look at the Mac, vaulting Apple to the number two slot among computer manufacturers. One has to believe there's a fair chance synergy with the iPod/iTunes model is helping as well. As for the iPhone, reviews seem pretty strong when it comes to the device's form factor and touchscreen display ("Apple Takes iPhone Developers On Safari"). Less enthusiastically received is the speed of web access through AT&T's Edge network, which is slower than rivals using 3G technology. And of course there's the matter of that $499-$599 price range, considerably richer than the cost of many high-end cell phones, and, for that matter, a lot more than iPod.
Given what are said to be fat margins on iPhones, Jobs & Co. may have room to cut prices, and indeed that may be Apple's next move. But the web is rife with rumors of a more intriguing stratagem: a next-generation iPod that sports a screen interface similar to the iPhone's, and perhaps Wi-Fi connectivity as well. Unbundling the phone functionality in this way would still leave users of such a new iPod able to surf the web at a hotspot, and would presumably lower the price. While having the phone feature is great in principal, Apple's execution and choice of carrier has made it costly, not simply in terms of the unit itself but the required two-year commitment to Edge. Rolling out an iPod with iPhone screen and Wi-Fi technology would allow users to sidestep a contractual obligation to a lesser technology, one Apple may now be finding a barrier to sales.
Maybe they could call this new hybrid the iPhod?