iPhone 5 Tops Five Million in Sales, Still Somehow Disappoints Wall Street

by Jordan Richardson on September 25, 2012

It was already known that demand for the iPhone 5 exceeded supply, but now Apple has released hard numbers to back it up. The company confirmed that it sold out of its latest incarnation of the iPhone, reaching the milestone just three days after it went on sale.

“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,” Apple chief CEO Tim Cook said in a statement.

The iPhone 5 totals predictably exceeded sales of the previous incarnation, the iPhone 4S. That “older” iPhone sold four million units in its first weekend when it was first released less than a year ago.

Apple has confirmed that the majority of pre-orders for the iPhone 5 have been filled, but some may have to go out in October.

Amid rushes of Apple fans outside of stores to grab the iPhone 5, there has been some concern that the Cupertino company may not be able to produce at a quick enough rate to meet the demand. Friday saw extensive lines outside of Apple stores and other retailers offering the product.

Weirdly enough, the massive, supply-exceeding sales of the iPhone 5 still came up short with respect to Wall Street predictions and shares in Apple actually took a dip over news that “only” five million units were moved. Some analysts predicted that over 10 million iPhones would be sold over the weekend, so Apple shares dropped 1.7 percent as a result of missing expectations.

It is this realm of speculation that may signal trouble for Apple. With expectations at unrealistic heights, the company may have trouble meeting those numbers. Like a straight-A student with demanding parents, Apple could find itself at the mercy of stock market forecasts and could see shares continuing to slip as a result.

Now, forecasters are keeping a close eye on the company for any trouble in the supply line. The theory seems to be that Apple could’ve sold a lot more iPhones had they not run out of iPhones. Confirmation of this theory is expected as the product comes out in another 22 countries this coming Friday.

Not every analyst is worried, however. “We are not overly concerned with this ‘disappointing’ number as we believe this is a classic case of near-term expectations getting out of touch with reality,” Sterne Agee analyst Shaw Wu said.

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Written by: Jordan Richardson. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitterFacebook, or YouTube.

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