By Richard Menta 9/11/07
Apple announced that it sold one million iPhone units since its introduction, achieving its first sales goal three weeks early. The milestone sent Apple shares rebounding up $4.94, or 3.8 percent, to $136.71. The news alleviates concerns that iPhone sales, while brisk, were below expectations. Such opinions were amplified when Apple reduced the price of the iPhone by a whopping $200, which some pundits felt was a reaction by Apple to stem slowing iPhone sales.
Said American Technology Research analyst Shawn Wu ""I'd argue that sales have been fairly strong, and this alleviates concerns that sales were weak." Apple argued that lower prices were instituted to stimulate market growth well beyond the original projections by the company. Creative Strategies analyst Tim Bajarin also pointed out that the price move allowed Apple to introduce the iPod touch without it hurting iPhone sales. Both devices now sell for $399, but the touch at that price offers 16GB of flash memory, while the iPhone offers a phone, Bluetooth and 8GB. Said Bajarin "They solved the cannibalization problem with this."
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