Apple iPhones and iPods sales graph dipping” has for sure pressed the panic button in Apple Inc. The company which has witnessed highflying conversions and revenue since the time it launched the iPhone in the end of June 2007; has recently reported a slow down in the sales for the first time since its release.

Apple in its last quarterly fiscal had announced sale of 3.75 million iPhones and has stated a goal of selling 10 million iPhones in the year 2008. Apple has recently introduced a new 16GB model to cater to those who require higher storage space. The new 16 GB model is priced at $499, while the 8GB model is priced at $399.

Recent reports indicate that the sales growth was slowing in the firm’s mainstay product lines, consequently leading to slight lowering of shares. As shares slipped 32 cents to end the day’s trading at $119.74, analysts are doubtful if Apple could reach its stated goal of 10 million iPhones for the year, if the slowdown persists. Moreover, market analysts are

also predicting market cut-off prices of Apple stock to be down from $160 to $140 and that too combining the iPods, iPhone and Macs together.

While iPhone has still the potential for ‘Midas touch’, it however, seems to be losing steam in the survival game. On one hand when the demand for the handset seems to be falling short of expectations; the case of the ‘unlocked’ iPhones has also be responsible for the slowdown in sales. Apple Inc. as per its business model offers exclusivity network right to the carrier it collaborates in each country. This amounts to compelling an Apple iPhone user to be in a 2-year contract with the service provider, who only can unlock the locked iPhone.

Apple iPhone, which on an average sold 180,000 units a week, as per the Q4 results, now anticipates a sale of only 1.4 million iPhones in the March quarter; besides iPods sale of 9.5 million. Similarly, Market analysts predict an annual sale of 7.7 million as opposed to its target of approximately 10 million iPhones.