Apple Crushes Quarter but iPhone Sales Not Huge

From Apple's Q1 fiscal '09 earnings release:

Some analysts had expected higher iPhone sales, while the figures were in line with others' expectations. Apple stock was up in after hours trading.

Considering the weakness of the economy this was a stellar quarter for Apple. Not broken out in any of the material I saw were iPod Touch sales (representing people who want the iPhone functionality but won't switch carriers). But AdMob's most recent numbers argue that this theory is correct and people are buying the iPod Touch rather than switching to AT&T to get the iPhone. (It's what I did too.)

According to Apple, international sales represented 46 percent of quarterly revenue. 

I was in one of the Apple stores in California two days ago and was really surprised by how busy it was. There was no hint of a recession and I had to wait for a considerable amount of time to get help and when I was checking out. So I'm not really surprised to see these strong numbers.  

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Silicon Alley Insider (SAI) covers the conference call with some additional datapoints: iPod share over 70% in UK and Aus, over 60% in Japan, and over 50% in Canada.

SAI correctly argues is that price is an inhibitor for many people in thinking about the iPhone. I would argue it's the data plan rather than the iPhone itself that's the culprit. Cutting the price of both the handset and the data plans would drive further adoption but if you had to do one or the other, I'd cut the data plan cost. 

Competition from other nearly as good handsets (some argue that the Pre bests the iPhone in certain ways) will also keep people back. Then there's the "inertia" that keeps people by default with their own carriers. I would imagine that iPhone sales in the US would be at least 30% to 40% greater if it wasn't tied exclusively to AT&T.