… on their opening weekend?

Eleven (11). You know, ten (10) + one (1) = …
It is said that the official iPhone didn’t sell as well as most assumed because of black market iPhones which are unlocked & have wi-fi*

*In case you didn’t know, the iPhone 3GS in China does not have wi-fi because of a temporary ban there on the technology. It was lifted in May but unfortunately that was too late for this initial batch of iPhone 3GSs. They plan on releasing wi-fi enabled iPhone 3GSs by 2010 though.

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The Commercial Times has published a report which expects Apple to launch three different iPhone models in June. They believe that a 2.75G (EDGE) version, an upgraded 3G version and a China-oriented model (CDMA?) are being worked on. Its likely that the 2.75G (Edge) model would be intended for the budget minded consumer. Its believed that the form factor will remain the same.

The report estimates an initial production run of 4 million units.

(via Gizmodo.com)

An iSuppli teardown estimates the cost of the shuffle’s components, the headphones, and the packaging it ships in at $21.77.

Business Week says ‘that’s about 28% of the device’s retail price. The smaller the component cost as a percentage of price, the higher the potential profit. This suggests the per-unit profit margin on the shuffle is higher than on other iPod models. The component cost for the first iPod touch released in 2007, for instance, amounted to about $147, or about 49% of its $299 retail price. The component cost of the third-generation iPod nano, also released in 2007, amounted to about 40% of its retail price.’

The main application chip used in the device is made by Samsung. Other suppliers include Toshiba, Hynix Semiconductor, On Semiconductor, NXP Semiconductor, and Texas Instruments.

(via iClarified.com)

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The Royal Bank of Canada is maintaining its bearish near-term outlook on shares of Apple, claiming that although consumer interest in a new version of the iPhone remains healthy, sales of the new device are unlikely to provide the company with the same boost seen during the transition from the original iPhone to the iPhone 3G.

In a report to clients Monday, analyst Mike Abramsky laid out some pretty obvious predictions for the future of Apple’s smartphone business. Specifically, he believes the company “will announce an updated iPhone 3G ‘Pro’” at its annual developers conference slated for June 8-12, with a release to follow in July.

Among his feature predictions for the new model is a new 3.2 megapixel camera, better battery life for video playback, “a faster 3G chipset (HSUPA vs current HSDPA), improved graphics processor, video recording, more memory (16GB/32GB)” and an enclosure that’s one-tenth of a millimeter thinner than the one employed by the iPhone 3G.

A proprietary survey by RBC’s ChangeWave market research division conducted this month found “healthy pent-up demand” for a new iPhone, with 20% of the 4,300 respondents saying they’d consider buying a 16GB iPhone 3G ‘Pro’ (11%) priced at $199 or 32GB iPhone 3G Pro (9%) priced at $299. Another 8 % expressed interest in the current iPhone 3G if it were to be priced at $99.

However, Abramsky told clients the update won’t be enough to boost the iPhone’s momentum above current levels and is only likely to sustain the touchscreen handset’s current market traction. In support of this theory, he cited about a half dozen reasons, namely that the expected jump in internet download speeds is unlikely to be as dramatic as last year’s switch from EDGE to 3G.

Although Apple has reportedly been discussing options that would make the next iPhone more affordable (1, 2) for customers during the global recession, Abramsky isn’t holding high hopes for these changes either. Instead, he believes pricing will remain relatively the same, which is yet another reason he doesn’t expect new models to spark a noticeable increase in consumer demand.

“The prior 3G product cycle coincided with the move to subsidized iPhone pricing (from prior $399/$499), boosting buying intentions est. 50-100%,” he wrote.

Among the other factors cited by the analyst as weighing against a surge in momentum are the availability of pre-paid iPhones, pending launches from iPhone rivals, a slowdown in consumer spending, and a lack of new international territories for iPhone expansion.

That said, one international expansion prospect with “big” potential is China, Abramsky told clients. Assuming Apple finalizes a deal with the nation’s second-largest wireless provider China Unicom, he believes the company could sell upwards of 1.5 million additional iPhones during the 2009 calendar year.

Abramsky also used his note Monday to quell rumors of an entry-level iPhone that he helped fuel just one month ago.

“Build data and other checks suggest Apple may not launch a lower priced iPhone as soon as generally thought,” he wrote. “If so, his would help protect iPhone margins (est 55% at $400 subsidy), but might leave Apple vulnerable to share gains from pending lower-priced competitive alternatives.”

The RBC analyst maintained his Underperform rating and bleak $70 price target on shares of Apple.

(via AppleInsider.com)

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Apple’s on again-off again negotiations with China’s largest mobile carrier, China Mobile, have supposedly come to a standstill yet again. According to Interfax China, China Mobile CEO Wang Jianzhou is none too thrilled with the idea of Apple selling apps directly to China Mobile customers.

The latest rounds of talks with both Steve Jobs and Tim Cook came to a standstill when China Mobile supposedly refused to give up sales of smartphone apps to Apple. “Wang said China Mobile should operate the
application store itself in order to maintain its advantage,” a source told Interfax China. Another sticking point was that the App Store requires the use of a credit card, whereas most customers in China pay
by depositing money into their mobile phone accounts.

Read More via ArsTechnica

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