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Retail

iPhone 5 sells 5m in opening weekend

iPhone 5 sells 5m in opening weekend

Mon 24 Sep 2012 2:14pm GMT / 10:14am EDT / 7:14am PDT
MobileRetailHardware

But for some analysts, this was worse than expected

Apple

Established in 1976, Apple is a multinational corporation (corporate headquarters based in California)...

apple.com

iPhone 5 quickly hit 2 million pre-orders, and many were expecting Apple to have a monster weekend, but as it turns out, the latest iPhone "only" sold 5 million units during its first three days on the market. Piper Jaffray analyst Gene Munster had predicted sales of 6-10 million with 6 million being a "worst case scenario." Apple shares are trading down 1.32 percent in early trading.

Nevertheless, Apple is excited about the early demand for iPhone 5 exceeding the initial supply. A number of iPhone 5 orders won't be able to ship to customers until October. Additionally, Apple announced that its iOS 6 update has already been applied to over 100 million iOS devices.

"Demand for iPhone 5 has been incredible and we are working hard to get an iPhone 5 into the hands of every customer who wants one as quickly as possible," said Tim Cook, Apple's CEO. "While we have sold out of our initial supply, stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date. We appreciate everyone's patience and are working hard to build enough iPhone 5s for everyone."

So why did opening weekend sales miss the 6-10 million estimate? Munster, according to Business Insider, explained that all online pre-orders were not factored in.

"We believe there are two factors that negatively impacted the number. First, our sales expectation assumed that Apple would include all phones pre-ordered online. We believe that this may have been up to 1 million additional units as units pre-ordered after the middle of the first day were projected to be available in October," he said.

"Second, we noted 1.25 days of Apple Retail inventory compared to 2.5 days during the 4S launch. Our 8 million estimate assumed full weekend availability and the counting of all online pre-orders. We believe that if supply were not a constraint and Apple included all pre-orders, the launch weekend number would have been closer to 7-8 million, assuming ~1 million October pre-order sales and an additional 1-2 million units at retail."

9 Comments

Peter Johnson
CEO

8 1 0.1
Bah "Analysts"

He's just trying to justify why he got his headline figure wrong- "If supply were not a constraint" indeed. Why on earth would you assume that?

Mind you, to listen to some other pundits, you'd have thought Apple would be lucky to pass a miliion sales this time:)

Posted:A year ago

#1

Greg Wilcox
Creator, Destroy All Fanboys!

1,993 902 0.5
Hell, let me sell five million of something and make a couch out of money afterwards. I'll get back to you on that "failure" stuff after I fall off that cash-couch laughing and rolling on my money carpet. "Only" 5 million (with a busted map app at that!)... Yeesh.

Posted:A year ago

#2

Shane Sweeney
Academic

329 211 0.6
It will be time to Short Apple's stock price soon though.

Posted:A year ago

#3

Kingman Cheng
Illustrator and Animator

929 150 0.2
A few million people were also unable to get home using satnav that weekend. ;)

Posted:A year ago

#4

John Bye
Senior Game Designer

477 434 0.9
So the analyst said Apple would sell up to twice as many phones as they'd actually built, and then tried to come up with excuses as to why his prediction was so far off the money. Nice... How do I get his job?

Posted:A year ago

#5

Peter Dwyer
Games Designer/Developer

458 254 0.6
Or maybe...just maybe people are starting to realise that they want a different phone instead of an embarassingly sheep-like incremental update. Let's face it when you pull out an iphone and the guy next to you pulls out a galaxy note to read on. You kind of start to wonder why you're uber trendy device is the one that requires you to squint to read, while he is at arms length and still smiling.

Posted:A year ago

#6

Kingman Cheng
Illustrator and Animator

929 150 0.2
The more trendy you are, the more short sighted you are obviously, DUH!

Posted:A year ago

#7

gi biz
;,pgc.eu

341 51 0.1
Last time I checked, the percentage of customers who don't only download adware apps and who don't jailbreak their phone was esteemed to be 1 to 3%. Maybe it was an empiric estimate, but just in case it's anywhere near reality that would make 50.000-150.000 paying customers for apps, to be split among the sheer number of available apps. Obviously not all of them are gamers or install any app at all...

Posted:A year ago

#8

Hugo Dubs

164 24 0.1
Im miss you steeve... At least things were working at your time. Now I have a map app which is not working, that is not displaying map info on any other website such as facebook (which is now native as you know...), and the iOS 6 is just making everything crashing, going slow, and keeping my phone from using Wifi from time to time.

I was so happy to have an offline google gps nav... but no, now it still online, and it's not working...
(but don't worry, Apple is calling for google map devs to help them!)

Posted:A year ago

#9

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