It’s been dubbed the Mystery of the Missing iPhones. On Jan. 22, Apple reported that it sold 3.7 million units of its smartphones worldwide through the end of 2007. But AT&T, the exclusive U.S. iPhone reseller and by far the largest buyer of the devices, reported that its subscribers activated fewer than 2 million units last year. The big question on the minds of Apple watchers is: Where have the other 1.7 million iPhones gone?
The uncertainty has helped sink Apple’s (AAPL) stock price to $130 a share, down 34% since the beginning of the year. That is far worse than the 13% drop for the tech-heavy Nasdaq index. Apple shares were already under pressure over concerns about how weakening consumer spending would affect the company’s shipments of iPod music players and notebook computers. Now the worries about iPhone sales have entered the mix. “In the past week the stock has fallen further because of potentially lower iPhone shipments,” says Shebly Seyrafi, an analyst at Caris & Co.. A story that recently surfaced in a Chinese newspaper claimed that Apple’s iPhone component suppliers are cutting back on production in anticipation of lower U.S. demand.
