We are attempting here to estimate the total revenue from iPhone sales for the holiday quarter 2014 (Apple’s fiscal Q1-2015). Obviously, we can only estimate based on certain assumptions. Some of these come from news reports, others are our own.
In order to compute the iPhone revenue for any given period, we need two thing:
- Number of units sold
- Average Selling Price (ASP)
In the Seeking Alpha article, we show that analysts are predicting as high as 72 million iPhones will be sold this quarter. So here we will use figures ranging from 58 million units to 72 million units.
The ASP estimates are a lot more difficult to compute than units sold. To do so, we need to know two different distributions:
- Distribution of memory configurations for each model.
- Distribution of models sold.
United Airlines has just announced that it will purchase 23,000 iPhone 6 Plus smartphones from Apple for use by flight attendants. This will be a huge win for Apple.
Apple and IBM just announced the first round of MobileFirst apps from their partnership, including 2 designed for airlines. These are not the focus of this purchase, however. It seems that United has its own apps slated for the release.
Sam Risoli, United’s senior vice president of inflight services: “iPhone 6 Plus will enable them to deliver an even higher level of flyer-friendly service and will offer our flight attendants simple, one-touch access to valuable work information, enabling them to better serve our customers.”
Assuming that UAL purchases the 64 GB model, which retails for $849, and they get a $100 discount, then this would be a $17.2 million deal for Apple.
But the sale is only a portion of the benefit to Apple. There is an even bigger value in this deal.
Financial Times reports:
Apple has lost its longstanding lead over Google in US schools, with Chromebook laptop computers overtaking iPads for the first time as the most popular new device for education authorities purchasing in bulk for students.
Google shipped 715,500 of the low-cost laptops into US schools in the third quarter, compared with 702,000 iPads, according to IDC, the market research firm.
While price is part of the issue here, a very real problem for the iPad is that, like its sister product the iPhone, each device is limited to one user. In Apple’s iOS, there is no facility for multiple users to have separate logins to a device.
Nowhere is this more of a problem than in education. Here a device is used by multiple people in the course of each day, and it would be beneficial to have individual logins so that a user can instantly login to a system wide account.
Mac Daily News reader bmd0019 comments:
It is hard to find statistics on the average per vehicle consumption of gasoline is in the USA. The last figures I saw were about 700 gallons per year. If that is down somewhat since the recession I think we can work on a figure of say 680 gallons per vehicle per year. This means that a two-car family will see 1360 gallons per year.
Prices have fallen close to one dollar of late. This means that your average 2-car family is seeing an addition of over