Where are the 1.35 million missing iPhones?

By Tom Krazit, CNET News.com
31 January 2008 11:05 AM
Tags: iphone, crack, apple, at&t, gap, sold, million, 1.7

Despite efforts to prevent iPhone-cracking, AT&T and Apple appear to be losing the battle to keep customers locked into exclusive partnership.

Since Apple and AT&T started reporting the number of iPhones sold versus those operating on AT&T's mobile network, the gap between the figures has consistently grown.

During the first weekend of iPhone sales, the gap was 124,000 units. At the end of the third quarter of the calendar year, it had grown to 300,000 iPhones. Last week, Apple and AT&T revealed that gap had increased by a factor of five in the fourth quarter, to 1.7 million units.

Meanwhile, according to research firm, RBC Capital Markets research, the total number of units sold currently stands at 3.7 million units across the US and Europe, leaving the 1.7 million phones representing a 45 percent unexplained gap.

Only part of the 1.7 million unaccounted for phones can be explained by sales through European carriers such as O2, Orange and T-Mobile, which currently stand at 350,000, leaving a total of 1.35 million phones unaccounted for. If Apple's chief operating officer, Tim Cook, is correct, the figure should be at 20 percent of the total number sold -- 750,000. However RBC Capital Markets estimate of 30 percent is closer to the figures reported in Apple and AT&T's reports -- 1.3 million across Europe and the US.

Attempting to stem the growing number of iPhones being cracked, Apple has imposed various constraints on access to the iPhone, such as limiting the number of units that can be sold per person and forcing buyers to use their credit cards, to restricting the type of software that can be transferred from the iPhone's flash memory to the main memory.

Liam Tung from ZDNet.com.au contributed to this story.

Talkback 3 comments

    Apple - just another Microsoft Matt -- 31/01/08

    Funny that - consumers doing what they want with a device they have bought - Aplle will either release the unit to the free market or have it dissapear into technical hell - sort of like when Microsoft won over Apple Mac OS

    1.35 iPhones ready to be attacked Anonymous -- 03/02/08

    If their guessing 1.35 million unlocked iPhones, it also means 1.35 million iPhones with software vulnerabilities that could allow an attacker to remotely control a hacked iPhone. Although apple has patched these vulnerabilities, people with hacked iPhones won't be upgrading anytime soon because upgrades will break their ability to use other carriers.

    Is this really an issue? Bert Noble -- 21/02/08

    So people actually buy your product in droves and some choose to mod(ify) it - So what? Apple still make money. People modify their PCs and cars too you know! Do those manufacturers complain?

    The fact that people actually want the device is a good thing! Ever read an article talking about people modifying their Zunes. Could you care less - me either. Very different from Microsoft if you ask me.

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