iPhone 4S demand persists as about 85% of Apple stores see daily stock-outs
Consumer interest in the iPhone 4S has not waned since the handset went on sale last month, as one new analysis has found most Apple stores run out of stock on a daily basis.
Chris Whitmore with Deutsche Bank issued a note to investors on Monday in which he revealed that a poll of about 30 retail stores revealed Apple is experiencing daily stock-outs of the iPhone 4S at most of them. He said that between 85 percent and 90 percent of stores polled continue to run out of inventory.
"Apple employees are directing customers to make an online appointment (first come first serve) for next day pickup at nearby Apple retail stores as stocks appear to be refreshed daily at most locations," Whitmore said.
In-store Apple representatives reportedly advised that customers should log on to Apple's website between 9 p.m. and 12 p.m. to make an appointment for next-day pickup. A number of stores indicated that most of the iPhone 4S units sold are via a reservation, leaving very little stock for customers who simply show up at a store.
As Apple works to keep up with demand at its retail stores, the company is still advertising a wait time of one to two weeks for new iPhone 4S orders placed on its online storefront, both in the U.S. and internationally.
Inventory checks with carriers AT&T, Sprint and Verizon found that supply of the iPhone 4S was "more sporadic." Most stores Whitmore contacted indicated that shipments were infrequent, and there was no indication as to when Apple would send more units.
Whitmore believes strong demand for the iPhone 4S both in America and abroad shows that supply remains the only factor in determining how many handsets Apple will sell this quarter. He has forecast sales of 28 million iPhones during the holidays, but admitted that number appears "increasingly conservative."
The iPhone 4S has been the fastest rollout ever for an iPhone model, with Apple selling its new handset in seven countries at launch, quickly followed by 22 new countries on Oct. 28. Whitmore said his research has found that the iPhone 4S is selling strongly in the international countries where it recently debuted.
Chris Whitmore with Deutsche Bank issued a note to investors on Monday in which he revealed that a poll of about 30 retail stores revealed Apple is experiencing daily stock-outs of the iPhone 4S at most of them. He said that between 85 percent and 90 percent of stores polled continue to run out of inventory.
"Apple employees are directing customers to make an online appointment (first come first serve) for next day pickup at nearby Apple retail stores as stocks appear to be refreshed daily at most locations," Whitmore said.
In-store Apple representatives reportedly advised that customers should log on to Apple's website between 9 p.m. and 12 p.m. to make an appointment for next-day pickup. A number of stores indicated that most of the iPhone 4S units sold are via a reservation, leaving very little stock for customers who simply show up at a store.
As Apple works to keep up with demand at its retail stores, the company is still advertising a wait time of one to two weeks for new iPhone 4S orders placed on its online storefront, both in the U.S. and internationally.
Inventory checks with carriers AT&T, Sprint and Verizon found that supply of the iPhone 4S was "more sporadic." Most stores Whitmore contacted indicated that shipments were infrequent, and there was no indication as to when Apple would send more units.
Whitmore believes strong demand for the iPhone 4S both in America and abroad shows that supply remains the only factor in determining how many handsets Apple will sell this quarter. He has forecast sales of 28 million iPhones during the holidays, but admitted that number appears "increasingly conservative."
The iPhone 4S has been the fastest rollout ever for an iPhone model, with Apple selling its new handset in seven countries at launch, quickly followed by 22 new countries on Oct. 28. Whitmore said his research has found that the iPhone 4S is selling strongly in the international countries where it recently debuted.
Comments
Going to be some high numbers on the next fiscal report.
However, the battery and 3G connection is flawed. I hope it's not a hardware issue and they can fix it with a software update.
The 4S is great and Siri is a phenomenal game changing feature!
However, the battery and 3G connection is flawed. I hope it's not a hardware issue and they can fix it with a software update.
I have no problems with 3G connection on the iPhone 4S, but the battery drains a little faster then the iPhone 4.
Stores that carry for the 4S in my area (metro Detroit) are wiped out and don't expect stock for 2-6 weeks.
If you want one, buy it from Apple.
I don't hate Google or Android. I just think they are basically irrelevant to Apple's success or failure.
9 more customers down for Blackberry.
As long as Apple is selling every iOS device it can make why all the hand wringing and fretting over what the "competition" is doing? iPhone market share is growing, not shrinking, in the face of the Android crap-phone "juggernaut." The "Android is winning" argument doesn't seem to fit. Just today HTC found out it took a hit over the release of the iPhone 4S in October. I'd like to see some sales figures comparing premium Android phones with the iPhone.
I don't hate Google or Android. I just think they are basically irrelevant to Apple's success or failure.
really, the comparisons are unfair, but are great for the media to use.
How many companies make an android handset? Many. And with many versions of the OS. (there was a great chart wired-I think- posted regarding the fragmentation of andrioid versions and how some phones are sold with an already outdated OS).
There's only one iPhone maker combating all of these android makers and holding up quite well.
It's an artificial comparison, as if one car company makes a singular popular car and the sales figures get compared to every other car/company who make several popular cars--of course the other companies will have higher sales numbers, but does it mean anything?
Apple is doomed. It's just another iPhone 4. We waited fifteen months for the same product.
/sarcasm?
It's an artificial comparison, as if one car company makes a singular popular car and the sales figures get compared to every other car/company who make several popular cars--of course the other companies will have higher sales numbers, but does it mean anything?
Wait, Mercedes doesn't sell more cars than BMW, Audi, Toyota (and Lexus), Honda (and Acura), Nissan (and Infiniti), Hyundai, Kia, and GM combined? What?! Mercedes is DOOMED!!!!!
</s>
/sarcasm?
Ah, you're new.
Yes, yes it is.
1. pent-up demand due to the later-than-usual introduction of the 4S
2. the widest array of price options ever available for the iPhone, including the "free with contract" 3GS.
3. the fastest ramp-up of a new model (due in part to maintaining the same form factor and screen as the last model)
4. the widest distribution network to date (including the three largest carriers in the US)
5. the collapse of RIM
Might we see Apple hit 40 million?
1. pent-up demand due to the later-than-usual introduction of the 4S
2. the widest array of price options ever available for the iPhone, including the "free with contract" 3GS.
3. the fastest ramp-up of a new model (due in part to maintaining the same form factor and screen as the last model)
4. the widest distribution network to date (including the three largest carriers in the US)
5. the collapse of RIM
1. Yep.
2. I guess.
3. Sure.
4. Oh, is it?
5. Wait, when did that happen? I mean, I believe it'll happen easily before the end of next year; complete bankruptcy, all products gone, but have we heard that?
And
6. Siri.
People love it.
At the NYC Fifth Ave store, there is a big problem with the Chinese. There are dozens and dozens of them buying 2 at a time to resell in China. Surely, most of them work for a limited number of agents who are doing the overseas trading. The store does nothing to prevent these "scalpers" from taking most of the supply. It really sucks.
1) Curious how Apple Store employees could handle this? Turn them away because they are Chinese? Have two lines, one for Asians, one for non-Asians? If they are limiting them to two units so to me that sounds like they are doing what they legally can, unlike in China where they didn't have limits initially.
2) I was told that you couldn't buy the iPhone at sticker price yet aren't all these buyers signing up with a carrier's two year contract at this point or is NYC allowing buyers to get off contract iPhone pricing?
At the NYC Fifth Ave store, there is a big problem with the Chinese. There are dozens and dozens of them buying 2 at a time to resell in China. Surely, most of them work for a limited number of agents who are doing the overseas trading. The store does nothing to prevent these "scalpers" from taking most of the supply. It really sucks.
Why is that a problem? Do they have less right to buy a phone than you do?
I am super curious to see how many iPhones (of all models) are sold this quarter. There are several forces converging that could result in a very big number:
1. pent-up demand due to the later-than-usual introduction of the 4S
2. the widest array of price options ever available for the iPhone, including the "free with contract" 3GS.
3. the fastest ramp-up of a new model (due in part to maintaining the same form factor and screen as the last model)
4. the widest distribution network to date (including the three largest carriers in the US)
5. the collapse of RIM
Might we see Apple hit 40 million?
Plus, it is the holiday season.
Hitting 40MM would be pretty amazing. If iPad sales came in at 20MM, there is some possibility of hitting $50 billion in revenues for the quarter. It would be somewhere north of $13/share net income. Pretty wild. I would expect an event like this would re-set the stock price north of $500
Either way, it is great to see the strong demand.
What I have noticed is more iPhone 4Ses (or iPhone 4s?) in the wild. On subways, in the streets, in Starbucks, they seem to have more than doubled in the last few weeks. Judging from the fact that many units are *naked*, I am guessing they are new IP4Ses.
The 4S is great and Siri is a phenomenal game changing feature!
However, the battery and 3G connection is flawed. I hope it's not a hardware issue and they can fix it with a software update.
I have no problems with 3G connection on the iPhone 4S, but the battery drains a little faster then the iPhone 4.
I hear (and read) that the battery problem is common. Strangely, I am seeing better battery life on my iP4S. So are my kids.