Please ensure Javascript is enabled for purposes of website accessibility

Face It: iPhone 2.0 Is a Hit

By Dave Mock – Updated Apr 5, 2017 at 8:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Yes, even with all of the daily problems we hear about.

With the second-generation Apple (NASDAQ:AAPL) iPhone having been in the hands of consumers for several weeks now, we're hearing stories left and right about all of its warts. But even with complaints swirling about performance and what the iPhone still lacks, the second-generation product is already proving to be a great encore.

This past Monday, the head of Deutsche Telekom's (NYSE:DT) wireless subsidiary T-Mobile claimed that early sales have exceeded expectations, with more than 120,000 3G iPhones having jumped off the shelves since July 11. Significantly, 75,000 were sold in Germany alone, despite distribution problems that had the item on backorder.

While T-Mobile's iPhone markets -- which include Germany, the Netherlands, and Austria -- are only a small subset of nearly two dozen international markets, the acceptance of the second-generation iPhone is better than with the first. Initially, many Europeans balked at paying a premium price for a device that browsed the Web at relatively slow speeds and were irked that the device didn't take advantage of the latest 3G networks.

But now that European carriers have cleared the way for the new iPhone by deeply discounting the first generation, consumers appear to be responding well to the latest edition. And while many problems have been noted, consider that -- relative to other global phone makers such as Nokia (NYSE:NOK), Motorola (NYSE:MOT), and Samsung -- Apple receives way more scrutiny than any other manufacturer does. Had the same level of connection issues with the latest iPhone occurred on the latest RAZR or N-series, it probably wouldn't even have registered on industry sites, let alone the mainstream press.

What's interesting, though, is that the microanalysis among Apple zealots brings the quality of carrier networks to the forefront. Many bloggers are pulling the curtain back on how different carriers manage their networks and the bandwidth-thirsty devices like the iPhone. AT&T (NYSE:T) has been scorned again, this time for dropping iPhone calls due to poor 3G network coverage, while France Telecom's (NYSE:FTE) Orange is being lambasted for apparently limiting download speeds to iPhones.

I'm sure the iPhone still needs plenty of improvements. But overall, Apple has made a wildly successful entrance into the mobile market and is raising the performance bar for accompanying services as well.

For more Foolishness:

Apple is one of many game-changing companies recommended in the Motley Fool Stock Advisor service. To see all of the stocks that have helped Tom and David Gardner beat the market by 41 points on average, take a free 30-day trial.

Fool contributor Dave Mock is working on the 2.0 version of his presidential nomination acceptance speech. He owns shares of Motorola and is the author of The Qualcomm Equation. France Telecom is an Income Investor selection. Apple is a Stock Advisor recommendation. The Fool's disclosure policy was spotted secretly infiltrating the DNC.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.77 (0.23%) $0.34
Nokia Corporation Stock Quote
Nokia Corporation
NOK
$4.24 (-0.47%) $0.02
AT&T Inc. Stock Quote
AT&T Inc.
T
$15.67 (-2.12%) $0.34
Motorola Solutions, Inc. Stock Quote
Motorola Solutions, Inc.
MSI
$225.81 (-1.29%) $-2.95
Orange Stock Quote
Orange
ORAN
$9.11 (-2.77%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.