Just Where The Hell Did All The iPhones Go?

Here’s a problem: Apple says they’ve sold 3.7 million iPhones. AT&T says they’ve activated 2 million iPhones. Just where the hell are the rest of the iPhones?

The various theories get sort of complicated (taking into account European sales, etc.) but it boils down to this: Either there are a million unlocked iPhones out there, or the demand is not as high as Apple’s numbers suggest and there are lots and lots of unsold phones sitting around on AT&T shelves.

Report: iPhones piling up at AT&T stores [CNET]
(Photo:epicharmus)

Comments

  1. PølάrβǽЯ says:

    Yep, striking an exclusivity deal with AT&T was just a brilliant idea, Mr. Jobs. Now you have created a market specifically for the LEGAL unlocking of the iPhone. And this data only goes to prove that. As many have posted here, almost all of the 1.7 million unaccounted-for iPhones are being used on OTHER cell networks. Kudos, Steve.

  2. ludwigk says:

    There is a HUGE iPhone blackmarket. I’m really quite surprised how little attention its gotten from the media. Apparently none of you are aware of the fact that for months, tons of people would walk into the Apple Stores, buy the limit per person (usually 5) in CASH, and come back EVERY DAY doing this.

    This is why Apple had to reduce the limit per person to 2, AND refuse cash as payment for them so they could track purchases.

    They had to take measures to try to keep more iPhones on ATnT’s networks since they were their network parnter. Lots of these iPhones ended up being sold overseas, because the weakening dollar makes them much cheaper here.

    @ConnerC: The touch screen does indeed deactivate when holding the phone to your head, but if your proximity sensor is busted, and you unlocked your phone, Apple won’t service it.

  3. UpsetPanda says:

    This is a much smaller market to account for, but I saw the iPhone on NCIS (McGee had one) so I think a lot of studios buy iPhones to use for their shows.

  4. overbysara says:

    I love my iphone.

  5. JGB says:

    I’d buy one in a second, because, let’s face it..they are cool, but there is no way in hell I am going to be told where I have to get service. And, if I unlock it, I have a phone whose manufacturer is ACTIVELY trying to sabotage it! I was in the apple store the other day and they had a big sign behind the “geniuses” saying that if you brought your phone in for any reason, and it was unlocked, they were going to “update” it for you (IE, intentionally brick it). Whether you wanted them to or not. WTF?!?!?
    This is no different than buying a TV and Sony trying to tell you that you can watch only approved programming. You tried watching HBO instead of Showtime? TV shuts off permanently.

  6. Transient says:

    @JGB: So, say Apple makes the iPhone unlocked. You’re still not able to take it to Verizon or Sprint since they’re not GSM carriers. Are you still upset? Or is it the idea that it could brick that you’re bothered by?

    I understand the brick part being a pisser, but true carrier independence is an oxymoron in the US Cellphone market and a weak reason to boycott.

  7. 27spots says:

    I found 5,552 iPhones on eBay right now. You guys find the rest.

  8. Mr. Gunn says:

    snoop-blog: Um, I don’t know what your expectations of PDA are, but activesync, removeable storage or mass storage device functionality, and support for working with a large variety of file types are on my list of PDA qualities.

    The iphone is a ipod that can make calls, but is seriously short of other advanced smartphone functions.

  9. Witera33it says:

    There are definitely a million iPhones that have been jail-broken. I know someone that bought 6 iPhones to bring to France. International jail-breaking has to account for a whole bunch.
    I actually DO think that Jobs is creating a market for unlocked phones. I’m pretty sure that he would really want to have iPhones in the hands of everyone if he could. Apple has a long history of welcoming innovation with open arms. I can’t even count all the times they have bought innovative 3rd party software and integrated it into their system. The only reason that Apple has to have a strangle hold on iPhone activation is because of the exclusivity contract he had to sign just to get the phone on the market.
    @THEIRISHSCION You have it right. ATT is a stepping stone. I would kill for visual voice mail. I HATE the way voice mail works on average.

  10. Witera33it says:

    @ MR. GUNN I feel as though you have a very narrow view of PDA. It’s a personal digital assistant. The iPhone qualifies. It handles mail, schedules appointments, has a web browser, stock watcher, weather widget, music and a host of other entertainment options. It also synchs with your computer for your entertainment and scheduling needs. Its an assistant, just not yours.

  11. Myotheralt says:

    @melking1972: but what if you both have the same sister? then that only accounts for one iphone!

  12. ab3i says:

    I wouldn’t be surprised if there are a million+ unlocked iPhones outside of the US. When i was visiting India recently, unlocked iPhones were selling for approximately 850 USD, and they were always in demand. Some people were actually amazed that I hadn’t brought a few along with me to sell in the *gray market*.

  13. bkpatt says:

    I’m not sure how Jobs is considered the idiot here – call me crazy, but I’m pretty sure somewhere along the line he was aware that many people buy phones only to unlock them and use them with whatever carrier they want.

    Why do you think there weren’t such massive discounts on the iphone as there are with things like blackberries? Apple was going to make their buck either way the consumer went. Their price was a hedge bet that the consumer would do exactly what they did – unlock the damn things and move on. At the same time, they got money coming in from AT&T from the folks who did do it the intended way as a bonus.

    Apple walks away from either side profitably.

    Those iphone locks weren’t some big apple scheme, I hate to tell you, they were probably there only because AT&T demanded that Apple provide due diligence to keep the exclusivity with AT&T as the carrier. The further updates to try to re-lock the phone are just that – due diligence. Outside of that, Apple really doesn’t care. If they can prove due diligence, they still make money on the iphones being sold to be shipped overseas or unlocked for T-Mobile.

  14. nrwfos says:

    Maybe the iPhone is the new Beanie Baby – the new thing to collect in its original packaging to preserve its value.

    As for using them in movies and TV, that’s probably true. But nothing dates a movie like the phones that are used in them.

  15. Jaysyn was banned for: http://consumerist.com/5032912/the-subprime-meltdown-will-be-nothing-compared-to-the-prime-meltdown#c7042646 says:

    @mixerfx: Illegally? Are you high?

  16. JGB says:

    I have not bought a locked phone in years. I have four now (wife, 2 kids, and me) and none are locked. My wife is Belgian, so we go to Europe a lot, plus my job takes me to Asia. So, a locked phone is non-motherf#$%ing-starter. So, is a CDMA phone.

    I don’t even hold it against them that they sell them that way. I was just commenting on the fact that they are so intent on controlling these things after they sell them that they are releasing updates almost solely for the reason to destroy your unlocked phone.

    I can see buying one and unlocking it. I can’t see paying money to Apple and then having them declare war on me.

    If I take my 400 dollar phone in to the store because, oh I dunno, the battery is not charging and some genius poly-sci major with unfortunate facial hair deliberately destroys it, before all is said and done, I would probably end up tazered in the back of a police car.

  17. Anonymous says:

    I’ve seen at least two while in Uruguay amongst people I work with. They phones are definitely NOT activated on AT&T service, never were and never will be. So that accounts for two of ‘em…

  18. Mr. Gunn says:

    @Witera33it: Yeah, but all those things either require Wifi, or a mac to sync with. Why would you limit yourself to that when there are all kinda of phones and PDAs that have real 3G data connections, sync with a variety of platforms, and handle data files not sent as email attachments gracefully.

    In summary, THIS.

  19. firesign says:

    @Mr. Gunn: umm, the iphone synchs fine with a windows box also, just like the ipod. i understand your point, but facts is facts.

  20. Witera33it says:

    @MR. GUNN
    Um.. that link of yours just proves my point. Very mature, very open minded and forward thinking of you. And poorly informed as FIRESIGN pointed out.
    I have no need for 3G, other platforms, or file management on my phone. That’s what laptops are for. I don’t even own an iPhone. I was just saying that it is a PDA, and gave my reasons. I actually think that all of those swiss army devices are overkill.