Apple Inc just had a huge iPhone launch weekend in sales as the company reported it has sold 9 million units of the new iPhone 5S and the iPhone 5C. Apple did not break down the number of units sold per device, but nevertheless, the company broke its iPhone weekend sales record and has surpassed analyst expectations. Many analysts predicted Apple Inc would sell 5 to 6 million new iPhones.
In a press release, Apple Inc revealed its iPhone weekend sales and said it sold 9 million units of the two new iPhones in their first three days in stores. Due to the high weekend sales of the iPhones, Apple Inc has revised its quarterly revenue forecast to accommodate the new sales figures.
In July, Apple Inc projected revenue somewhere between $34 billion and $37 billion with a gross profit margin between 36 per cent and 37 per cent.
On Sept 23, Monday, Apple Inc's stock climbed 5 per cent or $23.23 to close on the Nasdaq Stock Market at the share price of $490.64. Apple shares dipped slightly by 1 per cent on Sept. 20 as investors were waiting for the company's iPhone weekend sales figures.
Aside from selling 9 million iPhone units in three days, Apple Inc also reported over 200 million downloads of Apple's latest software, the iOS 7. The biggest update of the iOS was released for download on Sept. 18. The iOS 7 is a free upgrade to Apple's operating system installed on compatible iPhones, iPad and iPod Touch.
Apple Inc enjoys a record-breaking sales volume for the iPhone 5S and iPhone 5C. In 2012, Apple Inc sold 5 million units of the iPhone 5 on its opening weekend. Based on the previous year's data, analysts forecast iPhone sales last weekend to be between 6 to 7 million units.
Apple Inc's decision to sell the iPhone 5S and iPhone 5C in China simultaneously with stores in New York, San Francisco, Singapore, Tokyo, among others, have helped boost sales of the new iPhones. Aside from the sales generated from Apple's Web site and its own retail stores, the company included sales data from other retailers.
Apple sold out the iPhone 5S champagne gold version on the opening day. While Apple has sold out the iPhone 5S after its record-breaking weekend, analysts said the 9 million units sold reported by Apple includes the unsold units of the iPhone 5C on-hand at non-Apple retailers.
Gene Munster, a Piper Jaffray analyst, said if the iPhone 5C was taken out of the data, it's "not the blowout" that most people believe. Mr Munster estimates that 3 to 4 million units of iPhone 5C were with retailers while the actual units in the hands of consumers were only 5.5 million.
Apple Inc's press release did not break down sales according to handset, but the company only said that there is a high demand for the iPhone 5S which exceeded supply. Tim Cook, who has recently joined Twitter as @tim_cook, tweeted on Monday:
Evaluating demand for Apple's new iPhones may prove to be more challenging as more countries were included in Apple's opening weekend. Eleven countries offered the new iPhone 5S and iPhone 5C to customers in 2013 compared to 9 countries in 2012. China, the world's second largest economy, is a huge smartphone market. Apple is looking at the Chinese market to boost overall growth.
In its first weekend sale in China, the iPhone 5 sold 2 million units. Toni Sacconaghi, a Sanford C. Bernstein analyst said China may have contributed the number of iPhone 5S and iPhone 5C units sold.
Analysts also observed that Apple's latest rollout of the new iPhones were stronger than expected. This year's lines were longer compared to queues outside Apple stores in 2012. Apple Inc's weekend sales figures may just be what investors have been waiting for to boost the company's stock price by 5 per cent.
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