Selling 5 million iPhone 5s in the first weekend of availability certainly sounds like a win. Apple sold roughly 1 million more iPhone 5s in its first weekend of availability compared to the number of iPhone 4S’ that Cupertino sold in that smartphones first weekend of availability. Despite moving 5 million units the first weekend, the iPhone 5 fell short of some analyst estimates.
BusinessWeek reports that supply constraints delayed shipments meaning Apple’s newest smartphone missed estimates put forth by some analysts. Apple has admitted that demand for the new smartphone was higher than availability of the device leading to delays of some early online orders. Shares in Apple stock declined, reports BusinessWeek, due to concern that supply constraints could hamper Apple’s ability to outpace rivals such as Samsung.
Analysts are concerned because the iPhone represents about two-thirds of Apple’s profits and is a crucial product for the company. Analyst Brian White from Topeka Capital Markets had said that he expected Apple to sell 6 to 6.5 million units, excluding Internet purchases that haven’t been shipped, in the opening weekend. He believes that Apple falling short of his estimates has to do with supply constraints rather than demand.
Apple stock shares fell 1.3% to trade at $690.79 at the close of trading. However, Apple stock has still gained 71% this year. Apple doesn’t figure Internet orders into its sales totals until the phones are delivered. That means that the presumably massive number of sales made online during the opening weekend that weren’t delivered aren’t counted in Apple’s 5 million unit record weekend. Analyst Brian Marshall from ISI Group expects that counting orders in transit right now, Apple moved 6,000,000 to 8,000,000 units.