iPhone 5 launch sales held back by limited supply
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."
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.
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."
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.
Comments
<joke>Who gives a ****. I got mine!</joke>
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.
Don't like making financial recommendations but a $10 drop for selling 5 million iphones in a weekend!!! - To me that would suggest a good time to invest in AAPL...:)
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?
Windows phones logistics supply chain much better ! In line with demand !
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!
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...
Quote:
Originally Posted by Commodification
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.
I know this sounds trollish but I'm seriously wondering if their supply issues have to do with the Foxconn workers on strike...
Originally Posted by chronster
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.
Quote:
Originally Posted by spaceage
@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?