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iPhone 5 launch sales held back by limited supply

post #1 of 41
Thread Starter 
Though sales of the iPhone 5 over its launch weekend broke records, the 5 million units sold by Apple came in below Wall Street expectations, as the company's limited supply was not able to keep up with considerable demand.

Analyst Gene Munster with Piper Jaffray said the sales shortfall is partially because he and others assumed Apple's sales figures would include all phones that were preordered online. He believes that would add up to a million additional units to the total sales, as the company quickly sold out of launch-day stock.

Munster also suggested that Apple may have rationed some of its iPhone 5 supply for the device's launch in 22 additional countries this Friday.

Brian Marshall with ISI Group also said in a note to investors that Apple's sales figures do not take into consideration units that are en route to customers. He said that Apple must have the signature of acceptance by a customer before the device can be counted as a sale.

As such, Marshall believes there could be millions of iPhone 5 units in transit to customers, which would further boost Apple's sales.

Brian White with Topeka Capital Markets is also not concerned about Apple's sales in the first three days. He said the shortfall is due to supply availability and the fact that many customers opted to preorder online and are still awaiting their handset.

"We remain aggressive buyers of Apple on any weakness in the stock this morning as we believe Apple has another blockbuster on its hands with the iPhone 5," White wrote, "and we expect the 'iPad mini' to launch in the coming weeks."

Unboxed


Munster believes Apple will be able to achieve a balance in supply and demand by the end of the December quarter. As a result, he said he remains comfortable with his projection of 49 million iPhone sales in the holiday shopping period.

Apple announced earlier Monday that sales of the iPhone 5 topped 5 million in its first weekend. That was an improvement on the 4 million iPhone 4S units Apple sold at launch in 2011, but was a number lower than most analysts expected.

In a statement, Apple Chief Executive Tim Cook said that demand for the iPhone 5 has been "incredible," and noted that his company sold out of its initial supply. The majority of preorders were said to be shipped to customers, but many preorders will not ship until October.
post #2 of 41
I'm still waiting, preordered on the 14th...delivery was suppose to be on the 21'st but ups screwed that up as always..and it's enroute this morning..
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post #3 of 41
Supplygate!
post #4 of 41
Crack the whip Foxconn.
post #5 of 41
The notion that 5M units would be considered "a miss" is absurd. Instead of feigning disappointment in a company (such as Apple in this instance), analysts should admit "we were wrong because our projections were pulled out of our butts"
post #6 of 41

<joke>Who gives a ****. I got mine!</joke>

post #7 of 41
ha! It took Apple nearly two years to sell one million iPods, but it took them one weekend to sell around 5 million iPhone 5's. So Apple/Foxconn can't keep up? I guess they need to bus in some more poor Chinese slave-workers to fill demand than dispose of them once they get caught up on the orders. There is always a dark side to when an empire is being built , and make no mistake Apple's huge success (maybe the first trillion dollar corporation) of making wonderfully designed products in China has a dark side that goes with it. For every beautiful Egyptian pyramid or Great Wall of China there is a long human history of the poor and enslaved being used to fulfill the dreams and desires of the rich and the privileged.

While I don't think the people in charge within Apple planned on this, but often there are unintended consequences for things (even for success) and there is a good chance that Apple has created a beast that they can no longer control as well as they would like.
Edited by Commodification - 9/24/12 at 8:05am
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post #8 of 41

Don't like making financial recommendations but a $10 drop for selling million iphones in a weekend!!! - To me that would suggest a good time to invest in AAPL...:)

post #9 of 41

These analysts are insane. They come up with some absurd numbers, each one adding to what the other said. "Oh they say 6M, I'll say 7M!" and then they get all disappointed when Apple SELLS MORE PHONES IN 3 DAYS THAN MOST COMPANIES HAVE SOLD ALL QUARTER (citing source... http://arstechnica.com/gadgets/2012/06/samsung-ships-43-million-smartphones-in-q1-dwarfs-htc-and-motorola/) So please analysts, take your head out of your butt... or maybe that's what your title really means?

post #10 of 41

Windows phones logistics supply chain much better ! In line with demand !

post #11 of 41
^ /s? I think Windows Phone suppliers should have no problem producing 10 phones a day... and that's probably above demand.
post #12 of 41
I was one of those expecting higher numbers. 6 million would have doubled supply from 4s. If Apple is only counting delivered devices and not supply sent to telecoms I would put this down to Apples wonderful habit of under reporting earnings to keep suspense up. Any one remember suscription accounting?

I will admit I am less willing to run out and buy a new one. I just got the 4s last year, and money doesn't grow on trees.

Is any one else tired of trying to find real news and ideas about Apple, and realising you have just started reading another fanboy battle?

How much would UPS and FedEx have booked in earnings from this weekend? $15-17 per delivery? 30 million in one weekend wouldnt be out of the realm of possibility. If they keep up that pace in weekly deliveries over the next 3 months you would be talking about almost 400 million in sales for each company from one product introduction. Not peanuts!
post #13 of 41
Even pundits like Jim Cramer on CNBC are poo-pooing this "disappointment" and wondering just where these "whisper numbers" of 10 million came from anyway.
post #14 of 41

Ahhh, the usual Analyst Games. 

 

Sometimes I think Apple is the only stock where a device can have record-smashing sales over a single weekend (5 MILLION units!) and yet, the stock will STILL lose 10 points just because the ANALYSTS said it would be more, and the sales "fell short".

 

Name one other device that sold 5 MILLION units on its launch weekend, and tell me, in what way did that "fall short" of ANY expectations, other than perhaps the contrived inventions of these so-called Analysts?

 

Only Apple. An easy stock to manipulate apparently. I'd like to see how much these so-called "analysts" have earned over the past few years on these VERY consistent (and highly predictable) analysis-results pairings...

post #15 of 41
The joke about the stock price is that just days before the announcement, the analysts weren't counting on any iPhone5 sales in the quarter, and now suddenly 5M in the first weekend is a disappointment??? What a sad and pathetic group. Not to mention that by the end of the week, including the additional markets coming online, there will likely be 10M units iP5 sold for the quarter. These so called "experts" heads are spinning like Linda Blair in the Exorcist!!!
post #16 of 41
@umrk_lab: "In line with demand !" No doubt...about 100 phones a week?
post #17 of 41
Quote:
Originally Posted by Commodification View Post

ha! It took Apple nearly two years to sell one million iPods, but it took them one weekend to sell around 5 million iPhone 5's. So Apple/Foxconn can't keep up? I guess they need to bus in some more poor Chinese slave-workers to fill demand than dispose of them once they get caught up on the orders. There is always a dark side to when an empire is being built , and make no mistake Apple's huge success (maybe the first trillion dollar corporation) of making wonderfully designed products in China has a dark side that goes with it. For every beautiful Egyptian pyramid or Great Wall of China there is a long human history of the poor and enslaved being used to fulfill the dreams and desires of the rich and the privileged.
While I don't think the people in charge within Apple planned on this, but often there are unintended consequences for things (even for success) and there is a good chance that Apple has created a beast that they can no longer control as well as they would like.


you make it sound like Apple is the only company using China factories. The fact is, this "slave" labor is better than what the rural chinese have in terms of salary, benefits, etc.

post #18 of 41

I know this sounds trollish but I'm seriously wondering if their supply issues have to do with the Foxconn workers on strike...

post #19 of 41
Originally Posted by chronster View Post
I know this sounds trollish but I'm seriously wondering if their supply issues have to do with the Foxconn workers on strike...

 

I'd imagine that psychologically there's a small effect there, but are those even workers on the Apple lines?

Ten of them are dead now. That's all Apple's fault, though.

post #20 of 41
Quote:
Originally Posted by spaceage View Post

@umrk_lab: "In line with demand !" No doubt...about 100 phones a week?

 

Elop has enough time to hand-build each one, and Ballmer has time to re-write WP8 for each one.

 

back on topic,

Are any of the iPhones made in Brazil?

post #21 of 41
Last week o n CNBC Jim Cramer (who is a big Apple fan) was begging the stock to drop a bit. I wouldn't be surprised if some of these "analysts" threw out unrealistic predictions because they wanted to short the stock. Or the stock drop might be due to worries over supply constraint (or Foxconn riots) than a concern there is soft demand.
post #22 of 41
Quote:
Originally Posted by spaceage View Post

The joke about the stock price is that just days before the announcement, the analysts weren't counting on any iPhone5 sales in the quarter, and now suddenly 5M in the first weekend is a disappointment??? What a sad and pathetic group. Not to mention that by the end of the week, including the additional markets coming online, there will likely be 10M units iP5 sold for the quarter. These so called "experts" heads are spinning like Linda Blair in the Exorcist!!!

The thing is the stock price was already reflecting sales that these experts predicted for the quarter.  If it doesn't match those expectations, the stock value will fall.  The analysts exist to try and determine if buying a stock is a good deal right now, and if they anticipate higher sales, they buy, and when they adjust sales downward, they sell stocks.  It's not that complicated.  Also remember that you're taking a $10 shift as if it's a large change... When a stock is valued at $700, it really isn't.  It's barely a change in 1% of the stocks value.  Stocks routinely go up and down, and they do so to the analysts drums.  The analysts don't care if the iphone is the hottest thing ever, if they estimated larger sales than occurred, it's likely that the stock will fall in value.  They're not here to stroke the ego of apple fans, but rather to help people make informed decisions when buying stocks.  I don't know why this is big news around here anyhow, but I don't think it comes as a surprise to anyone.  Everyone expected apple to sell a record number of iphones with the release of the 5, and many expected much higher sales than with the 4s.  The stock value anticipated this, and if sales don't reach those expectations, people sell.  Is it the end of Apple? Hardly, they're still having record sale.  Hell, their sales could drop by 50%, and they'd still be a hugely valuable company.  They just wouldn't be the pinnacle of growth and get rich buying stock company they tend to be now.

 

Phil

post #23 of 41
I was under the assumption that Apple would sell around 10 Million before the end of the month, which is still a week away. It seems as though they will easily hit 10 Million before the end of the month, and if supplies continue, maybe they'll sell 50 Million during the next quarter for a total of 10 Million units.
post #24 of 41

My friends that pre-ordered with Verizon received their phones last Friday.  My friends that pre-ordered with AT&T are still waiting.

post #25 of 41
Quote:
5+ million in 1 weekend

 

 

 

Quote:
Disappointment

 

Does not compute. 

post #26 of 41
"As a result, he said he remains comfortable with his projection of 49 million iPhone sales in the holiday shopping period."

Ahhh, but come the Jan quarter, Apple will be doomed, doomed I say, because the demand has dropped of.... Why Apple should just sell more and more each month.... f o r e v e r ............... LOL

Just a weird thought about crazy ANALysts.
post #27 of 41
Quote:
Originally Posted by lkrupp View Post

Even pundits like Jim Cramer on CNBC are poo-pooing this "disappointment" and wondering just where these "whisper numbers" of 10 million came from anyway.

True except for your first word... 'even'.

Cramer is a first class AAPL bull.

post #28 of 41

Artificially constrained!

post #29 of 41
Quote:
Originally Posted by Harbinger View Post

The notion that 5M units would be considered "a miss" is absurd. Instead of feigning disappointment in a company (such as Apple in this instance), analysts should admit "we were wrong because our projections were pulled out of our butts"

Yep. Apple doesn't warehouse for weeks as it would result in dead out of the box phones from drained batteries, security risks etc. add to this that quik release dates reduce reseller opportunities and of course supplies will be limited.

But having sold 5-7 million units in three days is far from a failure. Especially when that is possibly just Apples numbers. We might still need to add in the carriers, Best Buy etc.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

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post #30 of 41
Quote:
Originally Posted by Commodification View Post

While I don't think the people in charge within Apple planned on this, but often there are unintended consequences for things (even for success) and there is a good chance that Apple has created a beast that they can no longer control as well as they would like.

This isn't HP who made 5k units then shut down production unable to start back up for three months. Apple is already making more and people have proven they will wait.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #31 of 41
Quote:
Originally Posted by Tallest Skil View Post

I'd imagine that psychologically there's a small effect there, but are those even workers on the Apple lines?

According to some reports, no. Some even say that no Apple products are made at that particular plant

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #32 of 41

The thing is, the $700 AAPL stock price alreday baked in some high expectations, so it's normal to view this announcement as 'letdown'.

 

Either way, AAPL is going to be fine, at least before some new trends are coming out anyway.

post #33 of 41
Quote:
Originally Posted by Commodification View Post

ha! It took Apple nearly two years to sell one million iPods, but it took them one weekend to sell around 5 million iPhone 5's. So Apple/Foxconn can't keep up? I guess they need to bus in some more poor Chinese slave-workers to fill demand than dispose of them once they get caught up on the orders. There is always a dark side to when an empire is being built , and make no mistake Apple's huge success (maybe the first trillion dollar corporation) of making wonderfully designed products in China has a dark side that goes with it. For every beautiful Egyptian pyramid or Great Wall of China there is a long human history of the poor and enslaved being used to fulfill the dreams and desires of the rich and the privileged.
While I don't think the people in charge within Apple planned on this, but often there are unintended consequences for things (even for success) and there is a good chance that Apple has created a beast that they can no longer control as well as they would like.

You are determined to exploit any story on Apple's manufacturing to promote your simplistic morality play about slavery. You should re-read your Marshall McLuhan, to try to get the bigger story about uneven development in the Global Village.

The reason that Asia became the electronics manufacturing center for the world, the reason that the West lost such production 50 YEARS AGO, is that the phonetic alphabet combined with the printing press produced the linear Western mind, while ideographic writing as used in Asia produced the holistic mind needed for organizing electronic and other complicated forms of production.

Once Sony, Matsushita, etc., got in the game, transistor radio, tape recorder, television, video camera manufacturing all became the hegemony of Asia. No combination of effort could possibly shift electronics manufacturing to the West, unless it could be organized by Asian companies, like Foxconn is doing in Brazil—with assembly only, notice, not really manufacturing.

But these ideas are probably too big for the average bleeding-heart Mike Daisey-ish sentimentalist. Just deal with the idea that Foxconn workers are rising above their previous level of rural impoverishment, just like American factory workers were on the rise 100 years ago. The shaping by your tools reflected in your McLuhan signature quote should apply to you and all other Westerners: as they use the tools of global knowledge, they should become more global in intellectual outlook. Westerners should therefore become hegemonic in global communications software.
post #34 of 41
^--- Woah, umrk_lab -- did you just try to compare this to a Windows phone launch and supply chain? Has any or better yet... will any Windows phone ever sell 5 million phones... let alone 5 million phones in 3 days?
post #35 of 41

I purchased 10 more shares this morning. I hope it doesn't go down to $650 before bottoming out.

post #36 of 41

Interesting. My local Best Buy, closest AT&T location, and corporate Apple store all had stock yesterday when I went around trying to find a damn lighting USB cable, of which supply is truly limited. Would be nice to charge my phone in my car and at the office without having to carry a cable around with me between home and office every day.

post #37 of 41
Quote:
Originally Posted by jungmark View Post


you make it sound like Apple is the only company using China factories. The fact is, this "slave" labor is better than what the rural chinese have in terms of salary, benefits, etc.

They are certainly not the only corporation taking advantage of poor slave-like workers, but they are the wealthiest and the most able to right this wrong if they really wanted too.
We become what we behold. We shape our tools and then our tools shape us.- Marshall McLuhan

Join 'The New Middle Class Movement' @ http://www.facebook.com/pages/The-Ne...45269528896164
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We become what we behold. We shape our tools and then our tools shape us.- Marshall McLuhan

Join 'The New Middle Class Movement' @ http://www.facebook.com/pages/The-Ne...45269528896164
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post #38 of 41
Quote:
Originally Posted by Flaneur View Post

You are determined to exploit any story on Apple's manufacturing to promote your simplistic morality play about slavery. You should re-read your Marshall McLuhan, to try to get the bigger story about uneven development in the Global Village.

I can guarantee I'm significantly well read on the works and philosophy of Marshall McLuhan. In fact he believed that electronic technology was retribalizing western civilization and making them less intellectual. He spoke often about electronic video-centric media not because he thought it was a good thing, but because he thought it was having an untold negative influence on the way we think.
We become what we behold. We shape our tools and then our tools shape us.- Marshall McLuhan

Join 'The New Middle Class Movement' @ http://www.facebook.com/pages/The-Ne...45269528896164
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We become what we behold. We shape our tools and then our tools shape us.- Marshall McLuhan

Join 'The New Middle Class Movement' @ http://www.facebook.com/pages/The-Ne...45269528896164
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post #39 of 41
Quote:
Originally Posted by Kenn Wagenheim View Post

^--- Woah, umrk_lab -- did you just try to compare this to a Windows phone launch and supply chain? Has any or better yet... will any Windows phone ever sell 5 million phones... let alone 5 million phones in 3 days?

 

Consider this : NOT A SINGLE person can complain about a late delivery concerning an order for the newly announced Nokia Lumia 920 (announced in September).

 

This proves, without the shadow of any doubt, that the supply chain for this smartphone just makes the Apple one look ridiculous (and I am looking forward to see the ad Nokia will surely issue on this).

 

/s**2


Edited by umrk_lab - 9/24/12 at 2:10pm
post #40 of 41
Quote:
Originally Posted by Commodification View Post

I can guarantee I'm significantly well read on the works and philosophy of Marshall McLuhan. In fact he believed that electronic technology was retribalizing western civilization and making them less intellectual. He spoke often about electronic video-centric media not because he thought it was a good thing, but because he thought it was having an untold negative influence on the way we think.

And I can guarantee you are well mis-read on his works. The first "lesson," as he says over and over again in The Gutenberg Galaxy, is that judging one media effect better than another is a serious error. How can you say that an oral culture is better than a visual?

Yes, the world is retribalizing (temporarily) because of electronic technology, but people are not getting "less intellectual," they are getting less literary as print is surpassed as the reigning medium.
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