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"We’ve been completely blown away by the customer response" to the iPhone 5, says an Apple...

"We’ve been completely blown away by the customer response" to the iPhone 5, says an Apple (AAPL +1.2%) spokeswoman. The strong early demand has already been enough for two of Apple's biggest sell-side fans to sing its praises again. Topeka's Brian White now thinks his projections for 10M-12M FQ4 iPhone 5 sales could be conservative. Piper's Gene Munster predicts the phone's feel and build will take consumers by surprise, and notes its social media buzz has been very strong.
Comments (35)
  • Sacto_Joe
    , contributor
    Comments (256) | Send Message
     
    Selling out in less than an hour? Who could have predicted that? Apple is a freakin' MONSTER!!!
    14 Sep 2012, 07:06 PM Reply Like
  • thomasone
    , contributor
    Comments (89) | Send Message
     
    iphone 5 represents 0ver 70% of the company's profit- but they have yet to profit directly with the eco system.Apple is only starting
    14 Sep 2012, 07:10 PM Reply Like
  • gensearch2
    , contributor
    Comments (1462) | Send Message
     
    The Android fanboys had it nailed. .... I think they'll spin it this way.... The demand for the iPhone 5 was so weak they stopped selling after an hour.
    14 Sep 2012, 07:10 PM Reply Like
  • JDB_invest
    , contributor
    Comments (9) | Send Message
     
    It might be different in other parts of the country...but here in SF- I still do my lunch and street count... that is, look around at lunch, and most people are using or looking at their phone- which is about 80% iPhone.
    Really.... certainly not scientific, but I just count.... same thing on the street..... call it 8 out of 10- does that mean all 80% will upgrade- of course not.... still, you do the lunch count where you are at. Out of every 10.... how many iPhones?
    14 Sep 2012, 07:21 PM Reply Like
  • katzha
    , contributor
    Comments (15) | Send Message
     
    People are missing the point. What is striking is not that Apple sold out in an hour. What is striking is that the hour was midnight to 1:00 AM (or, where I live 3:00-4:00 AM).
    14 Sep 2012, 07:41 PM Reply Like
  • rickraphael
    , contributor
    Comments (283) | Send Message
     
    I take Amtrak from NYC to Albany 2x per month. I walk the train and 2/3's of the riders use iPhones and iPads. I also go past the 14th Street store in NYC 3x per month... always about 40 customers on the 1st floor. My wife asks, "how's business in our store today?" Same as always :)
    14 Sep 2012, 07:47 PM Reply Like
  • trch3737
    , contributor
    Comments (15) | Send Message
     
    EXCELLENT POINT!!
    15 Sep 2012, 12:06 AM Reply Like
  • pocohonta
    , contributor
    Comments (573) | Send Message
     
    @JDB_invest: Here's a more international view (since I travel often)

     

    While riding metro/commuter-train in Singapore and Malaysia (Kuala Lumpur) I saw lots of iPhones (about 8 out of 10) among students, businessmen, housewives and senior citizens. [people here have higher standard of living though]

     

    During my wife's trip to Korea (Seoul) she noticed EVERYONE with the 4" Samsung and NOBODY has iPhone (which attest to Korean's patriotism).

     

    In Taiwan I saw a mixture of more HTC, some iPhone and a few Samsung (and lots of relatives/friends asking if I can get them iPhone)

     

    In China, I saw people with cheap knock-off (but nice looking) non-smart phone. But when I do see someone with an iPhone, I also notice he/she being in the middle to high income (the rich) category with nice cars, wardrob, "real" LV purse and/or is a business owner or politician.

     

    In Hong Kong and the nearby ShengZhen (China border), I saw not just iPhones but and lots of phones that accepts dual-sim-cards because people cross the border between HK and China to work/visit.

     

    In metro Philippines I saw most people with non-smart phone and they only use SMS text and rarely call each other (something screwy with their telco because it cost a fortune to call but very cheap to text) and most people are pre-paid, and has a system of transfer phone credits among friends.

     

    I was in Canada recently, and you guessed it, ALMOST EVERYONE used Blackberry.

     

    In Southern California, I see more iPhones than Galaxy, just like what you saw at SF.

     

    My conclusion? Apple still have a lot of markets they have yet to penetrate!!!
    15 Sep 2012, 01:14 AM Reply Like
  • evannever
    , contributor
    Comments (52) | Send Message
     
    Wow, you do travel a lot!
    17 Sep 2012, 09:35 AM Reply Like
  • johnycarrs
    , contributor
    Comments (96) | Send Message
     
    600 MILLION waiting on CHINA MOBILE
    14 Sep 2012, 07:59 PM Reply Like
  • ebeuu
    , contributor
    Comments (350) | Send Message
     
    I've taken to ask tourists if they're carrying iPhones; 9 of 9 have all been iPhones: all iPhone 4's; think the 5s will start showing up, too.
    It seems to be a "fashion statement" like carrying Coach, Dooney Bourke, Trafalgar; ride the wave.
    14 Sep 2012, 09:10 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Creating a frenzy to drive more demand. Make it seem like people are missing out. Cunning strategy. Who knows the real numbers.
    14 Sep 2012, 09:57 PM Reply Like
  • CINDYVU
    , contributor
    Comments (79) | Send Message
     
    They are going to report the estimate number, usually in Millions, the next Monday. the Real number? Wait for the next quarterly report. Nothing to hide here.
    14 Sep 2012, 10:38 PM Reply Like
  • livshk
    , contributor
    Comments (31) | Send Message
     
    and isn't that Apple is the only company reports actual Sales # ? others report shipping # and in Amazon's case not any number and just (our #1 selling ...)
    15 Sep 2012, 12:15 AM Reply Like
  • gensearch2
    , contributor
    Comments (1462) | Send Message
     
    Santos pointed us once to the Amazon store's best selling electronics list.

     

    I noticed something beyond that the Kindle family was high on the list. It's down the list a few spots now because of the release of the new Kindle line, but no 8 on the list of best sellers is the Apple TV. Which Apple considers a "hobby", but on the best sellers list it's the highest rated best seller out of the Kindle family.
    15 Sep 2012, 09:26 AM Reply Like
  • dwilly
    , contributor
    Comments (93) | Send Message
     
    no need to create a frenzy
    17 Sep 2012, 07:52 AM Reply Like
  • Canadian Red Neck
    , contributor
    Comments (351) | Send Message
     
    Can someone please educate me. Did the smartphones of all the people who stay up to pre-order the iPhone 5 fail after the launching of iPhone 5? I have never felt the urge to go out to buy some newly launched products because whatever I have still work and I am waiting for better deal.

     

    Apple has the best marketing campaign around. I wish I could learn something from them about marketing so I can retire rich very soon. Some of the perceptions that Apple managed to convince people:

     

    Apple's products are easy and intuitive to use - So are my Sony Vaio laptops, Samsung Galaxy Nexus and Blackberry Playbook. My wife who is not technologically inclined and I never had to read instruction manuals to use these devices.

     

    Apple's products just work - So are my devices noted above. We turn them on and they just work.

     

    Apple's products are higher quality and more reilable - My oldest Sony VAIO laptop running XP is almost 7 years old now and is still working. My daughters use MBP. One of theirs died completely just after 2 years. I believe the motherboard died beyond repair.

     

    Apple's ecosystem makes life easy for their users - My MSFT and Adroid ecosystem also serve me very well.

     

    Apple has some nice products. But their strength is in their product differentiation and marketing. They are just in a league by themselves as far as marketing is concerned.

     

    I am an engineer by training and am too logical. I just think their products are not worth the extra money.
    15 Sep 2012, 02:42 AM Reply Like
  • gensearch2
    , contributor
    Comments (1462) | Send Message
     
    Re: Apple's products are easy and intuitive to use - So are my Sony Vaio laptops,

     

    You're overlooking something. Watch Judge Judy. The people that come up before her are not engineers. They are far more representative of America than an engineer. Look at all the people working in McDonalds, Burger King, Target and Wal*Mart. In the big scheme of things those people are average. The not so smart ones are working in the back.

     

    Re: "I am an engineer by training and am too logical. I just think their products are not worth the extra money. "

     

    Your logic is based on you. You have to base your logic on the mass public. Look at how "complex" TVs are to operate. Do you know how many people were unable to set the time on their VHS players when they lost power? Manufacturers have pretty much stopped putting clocks in TV sets. People couldn't figure how to set the time [or didn't want to take the miniscule effort].

     

    My wife has a Samsung Galaxy III; a top notched phone. I have an iPhone 4S. They weren't substantially different in cost .... if at all. I retired as a systems engineer/senior scientist and there is no doubt at all in my mind that the iPhone is more intuitive than the Galaxy.

     

    Switch to Windows for a minute. I've always built my own desktop systems. I wouldn't even consider buying a Dell. Can you tell me why after a couple of decades I'm still defragging my hard drive? I know why I'm doing it. But why do I have to do it? Do I really want to spend my time defragging my hard drive or tweaking my registry file.

     

    If I went to buy a computer "Tweaking my registry file" is no where on my priority list. It certainly isn't intuitive. I want to tweak Android as much as I want to tweak the firmware in my car. Do you ever look at the menu system for your TV and get the itch to dig into the firmware and change the desktop? I sure don't.

     

    You're falling in the trap so many engineers fall into. You're asking the wrong questions. You're asking about pixels and all other sorts of specs. A system's engineer would ask different questions.

     

    Use your engineer logic and answer the question. Why has the iphone received the top award for customer satisfaction 8 years in a row? Why do Apple products always get the highest customer satisfaction ratings?

     

    User your engineer logic and answer why the ipad accounts for 91% of all tablet web traffic. If the other tablets are just as good, why don't Android tablets account for a lot larger percentage of web traffic. They are at least 30% of the tablet market but only take 9% of web traffic. Why?

     

    Old story about Steve Jobs lambasting an engineer at Apple for how long it took to boot up the operating system. Wasted time. As an engineer you probably shrug off 90 seconds, 60 seconds ... who cares? Steve Jobs cared. I look at my Windows 7 PC and it's pretty clear that Microsoft doesn't care how long it takes my system to boot up. They don't care whether I need to defrag my hard drive. They don't care whether I need to defrag my Registry for system performance.

     

    I'm sick and tired of Microsoft not caring and my next system is going to be an iMac. And it's not because I work at Wal*Mart, I want my computing power to be an appliance not a tool. There's a big difference between an "appliance" and a "tool".
    15 Sep 2012, 08:18 AM Reply Like
  • JH001
    , contributor
    Comments (32) | Send Message
     
    Excellent analysis gensearch2. Your last paragpraph sums up my strategy too. I'm making the switch. My wife has the 4s, I pre-ordered the iPhone 5 yesterday from Sprint. I bought my wife the iPad early this year. And would you like to guess what is happening? My time to support her system has dropped to nearly zero as oppose to figuring out how to do things with the Samsung or how to get her music across all her platforms (I'll bet before she switched to iTunes she purchased the same song many, many times because they get lost due to technical glitches on her MSFT system or the old RCA Lyra or etc, etc) and where I put the last backup before her windows system crashed and needed to be reloaded again after only 6 months of building it. And having to call MSFT to get them to allow her Windows 7 license to activate after I rebuilt it on the same system. I am a Senior Director with a M.S. in C.S. and I don't have time to be her support staff nor do I want to fiddle with keeping this MSFT OS running. I just want something that is intuitive, links nicely between all my devices, doesn't lose electronic media I have paid for and keeps on working.
    15 Sep 2012, 08:43 AM Reply Like
  • entmd
    , contributor
    Comments (941) | Send Message
     
    I'm of the belief that marketing only gets you so far. If marketing gets you to buy and use a product, that product then has to deliver. And Apple is obviously delivering. You don't become the biggest company in the world with just marketing. Like you, not everyone gets Apple, but it seems that most do. We've converted many friends into happy Apple users. Happy Apple users will then convert more friends. Marketing alone can't make you happy.
    I was given a brand new Dell laptop with Windows 7 by my practice. I've used Windows XP at work for the past decade plus. In know Windows. I hate Windows. The Dell laptop is cheap looking, thick, heavy. I can't stand how clumsy the trackpad is. I had to attack a mouse. I had the IT guy set up my MacBook Pro so it can access our EMR and I don't use the Dell at all. I wouldn't pay $100 for it.

     

    Too bad about your daughter's MBP. I bet if she bothered to take it into the Genius Bar that they would have fixed it or given her a new one, even out of warranty. We've had several instances where Apple has replaced or fixed our out of warranty products for free. The customer service is the best.
    15 Sep 2012, 09:49 AM Reply Like
  • Canadian Red Neck
    , contributor
    Comments (351) | Send Message
     
    Hi, gensearch2,

     

    Many of your points are well taken. I have not done any disk defrag since the early days of MS DOS and that was a long time ago. I did it because I wanted to have better performance and save disk space. I think that need is essentially gone now with the advance of large capacity disk.

     

    Over the years, I had to call MSFT for support a few times, primarily over driver for old device on new OS. I agree with you that I got the bouncing around between them and the device manufacturers. That was annoying.

     

    As for setting time on VCR. I did have the same problem if I did not have manual with me because of the requirement of holding combination of keys and sequence. This problem is essentially gone now with the use of system, network or internet clock.

     

    As for surfing the net from tablet, I don't know why iPad owners surfed more than others. My wife and I used the Blackberry Playbook to surf when we were sitting in front of the TV, basically, multi-taksing. Other times, we used our laptop. I don't surf in public places like Starbuck. May be the difference is due to demographic of the owners of iPad and other tablets. This should be an interesting market survey.

     

    As for whether Apple's products are more intuitive than others, I am of the opinion that it all depends on the end users. Over the years, I had thought about switching over to Apple but did not. I have tried my daughters' MBP and my relatives' iPad, I did not find them any more intuitive than my Sony VAIO laptop, Samsung Galaxy Nexus and Blackberry Playbook. Like I said before, my wife is the least technologically inclined person I know of and she can use these devices without much coaching from me. That is good enough for me.
    15 Sep 2012, 12:38 PM Reply Like
  • larrylake
    , contributor
    Comments (54) | Send Message
     
    The old saying is true....you get what you pay for.......if your on a budget...windows PC's and Android phones will do the job. For me, I would much rather spend the extra money and go with a product that is best of class. I want something that is low maintenance, the highest quality and very user friendly. At work we switched over to iMac's and I love it that it that they just work year after year like the day we purchased them. And Apple customer support is outstanding...second to none. Their is a reason you almost never see someone switching from a Mac to PC. When you look at resale value, hardware, the pre installed software and the annual cost of virus software, I really don't see much cost advantage to buying a PC
    IMHO
    16 Sep 2012, 04:47 PM Reply Like
  • harryjack
    , contributor
    Comments (483) | Send Message
     
    JH001 - OMG - you my man are 1 of millions who can write the same post. Since my wife got iMac and new iPad, I cannot be a macho tech in my house anymore! Oh well, football season is here - oh how I will miss doing all the BS you described above!!!! There should be an AAPL ad on this!
    16 Sep 2012, 10:07 PM Reply Like
  • gensearch2
    , contributor
    Comments (1462) | Send Message
     
    Defrags don't save disk space. All it does is re-order file fragments into a contiguous space on the drive.

     

    Where I volunteer, we have a dozen or so pcs running XP. Old PCs admittedly, but we have to run periodic maintenance to include defragging to have a tolerable performance .

     

    You're still doing the same thing. You're taking an extremely small sample, your family, and extrapolating it to millions of people. As an engineer you should know you need at least a thousand or so random samples to come up with a estimate that has a plus/minus 3% probability of being right.

     

    It doesn't mean squat what YOU do with your Playbook. When you make an estimate based on a non random sampling of 3 or 4 users [e.g., your family] what accuracy do you get with your prediction at +/-1 standard deviation?

     

    You're making excuses on the VCR time. You're coming up with one reason why an engineer can't change a clock. You need a manual. Since when has an engineer needed a manual? And by suggesting it's irrelevant now is ... irrelevant. The point wasn't the detail, the point was there was a huge number of people that couldn't handle changing the clock. I doubt it was because everyone was an engineer who lost their manual.

     

    Making "simple" isn't simple. I was beta testing some windows s/w our company was making for a client. One of the numerous problems I found was that they used the F10 key to call up the help menu. When I pointed out to these s/w engineers that the standard was F1, the response I got back was the client will learn that with our s/w it's F10. Morons. It shipped out that way. Guess what one of the first comments from the client was? "Where do I find the Help menu, it's not at F1." ... Classic engineer mentality. "The user can figure it out." That is NOT Apple engineering.

     

    My wife got a Galaxy S3, I'm embarrassed to admit it but I pushed her in that direction because of the screen size. Intuitive junk. I installed 3 different s/w solutions that were supposed to allow me to sync with iTunes. None of them worked. I'm sure I could figure it out eventually but that isn't how I want to spend my time and if I left it to my wife, she would never have music on her S3. It's headed back to AT&T this morning.

     

    A quick check of the Play store looking for apps that I have on my iPhone shows they aren't available. Pocket for one.

     

    I get sucked into helping a friend with his Droid. He's had it well over a month and doesn't do anything with it other than make phone calls. ... But he's proud he has LTE and it was a better bargain then an iPhone.

     

    Tell me what's "logical" about ignoring that the iPhone has won the JD Powers award for best phone 8 years in a row. Everything you write ignores that.
    17 Sep 2012, 08:48 AM Reply Like
  • bizstem
    , contributor
    Comment (1) | Send Message
     
    This is crazy....great for Apple!
    15 Sep 2012, 07:43 AM Reply Like
  • KENNETH E SPATZ
    , contributor
    Comment (1) | Send Message
     
    got mine at 8:0am
    15 Sep 2012, 07:44 AM Reply Like
  • dosteov
    , contributor
    Comment (1) | Send Message
     
    What's great about apple is the resale values in their phones. I just flipped my 4S for 425$ on ebay. Covered my early termination fee and new phone. Samsung phones are worth a nickel 6 months after they are out.
    15 Sep 2012, 08:03 AM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    The iPhone 4S, which was generally considered to be a disappointment upon its release as it wasn't the 5, sold 37 M in the Christmas quarter last year. I'll predict that by the time Apple reports its Q1 in January 2013, 70 M iPhone 5 will have been sold to date.
    15 Sep 2012, 09:13 AM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    I'm long AAPL and love that they sold out in an hour, but.... How many phones did they have available to fulfill the first wave of orders? 20M would be impressive. 100,000, not so much.
    15 Sep 2012, 09:13 AM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    Apple releases a product when the supply is ready. Not sure how many to expect here, but it's going to be far more than 100k.
    15 Sep 2012, 12:32 PM Reply Like
  • harryjack
    , contributor
    Comments (483) | Send Message
     
    We should get some initial sales numbers by Friday after store sales start.
    16 Sep 2012, 10:07 PM Reply Like
  • harryjack
    , contributor
    Comments (483) | Send Message
     
    Anybody watch the i4s star in the opening ceremony? I had a hard time spotting athletes from around the world taking pictures and tweeting with anything but an Apple. Oh, that one kid from Albania....
    15 Sep 2012, 09:19 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5430) | Send Message
     
    harryhjack,

     

    I noticed the iPhones at the opening ceremony. There is plenty of talk about how Apple is not as popular as Samsung (and others) outside the US.

     

    Someone forgot to tell the athletes from these countries.

     

    I believe the one without an iPhone was one of the four "independent" athletes with no country affiliation. What the hell was that about?

     

    Albania...that is a good one, unless you are a SA reader in Albania!
    15 Sep 2012, 11:49 AM Reply Like
  • thomasone
    , contributor
    Comments (89) | Send Message
     
    iphone 4s is the only electronic gadget other than plain vanilla cell phone , that my wife can use to the full extent. all others sit by the wayside, uncharged, lost and a manual need gets to be read.
    so yes apple has one of the few products that is intuitive which is the way things should be-
    now MS is a different story - their products are the opposite and their flaws are well the customers problem - they have to reset their thinking- Windows 8 is already playing havoc on my computer us..
    MS may have been converted with Nokia Lumina 920- just maybe
    16 Sep 2012, 04:27 PM Reply Like
  • harryjack
    , contributor
    Comments (483) | Send Message
     
    AAPL likes to beat ship dates so many phones will arrive quickly although I don't think they will arrive before store intro. After that, FEDEX drivers are going to get even skinnier!!!

     

    One other thing the populous seems to be missing - I bet 85% of buyers are NOT 4S owners so from the perspective of buyers like me, the comarison should be to the iPhone 4. Maintaining my apps I am using is a big retention factor.
    16 Sep 2012, 10:07 PM Reply Like
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