Seeking Alpha

IPhone 5 (AAPL) sales come in at "over 5M," well below expectations. (PR) AAPL -2.3% premarket.

IPhone 5 (AAPL) sales come in at "over 5M," well below expectations. (PR) AAPL -2.3% premarket.
Comments (73)
  • naplam
    , contributor
    Comments (76) | Send Message
     
    Hmm.. but they are out of stock apparently... so the problem is not demand but rather not having enough of them?
    24 Sep 2012, 08:41 AM Reply Like
  • Joseph Poma
    , contributor
    Comments (437) | Send Message
     
    5%? Try 2.2% Let's not get out of hand.
    24 Sep 2012, 08:43 AM Reply Like
  • 1brayden
    , contributor
    Comments (23) | Send Message
     
    Based on 5 million units, that works out to approximately a little over 2 billion in profits. Not bad for weekend sales.
    24 Sep 2012, 09:28 AM Reply Like
  • fracguru
    , contributor
    Comments (11) | Send Message
     
    Click on the 'expectations' link. It's some guy trying to predict the sales based on the lines. Seriously?
    24 Sep 2012, 08:45 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    I continue to be fascinated that it's the company that gets rewarded or punished in the near term on what analysts pull out of their butts.

     

    They claim that in the private sector performance is rewarded. But that rule has never applied to analysts. What a great job. You can pull numbers out of your butt, be wrong and get a bonus for it.
    24 Sep 2012, 08:56 AM Reply Like
  • racchole
    , contributor
    Comments (319) | Send Message
     
    Every company succumbs to the same standards of the market game. Why would Apple be any different?
    24 Sep 2012, 03:10 PM Reply Like
  • Karenkgng
    , contributor
    Comments (2) | Send Message
     
    Spot on!!!
    24 Sep 2012, 10:54 PM Reply Like
  • Karenkgng
    , contributor
    Comments (2) | Send Message
     
    Hear hear ... So true!!!!
    24 Sep 2012, 10:54 PM Reply Like
  • pagreen1966
    , contributor
    Comments (587) | Send Message
     
    Excellent! A good buying opportunity. However, they have now recovered somewhat as at the time of writing they are trading at $687 (down 1.8%):

     

    http://bit.ly/QPgNQ1
    24 Sep 2012, 08:46 AM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    They were having issues with their suppliers before hand weren't they? If so, this isn't much of surprise. However the estimates were really overstated then.

     

    Either way you can't expect everyone to keep upgrading year after year. 80% of the population is a general user, basic email, web surfing. They don't need to upgrade every year for $600. Next year the 5s will come out and they will have their 2 year upgrade waiting.

     

    I think the only story here is market saturation... we can't expect blow out sales year after year anymore.
    24 Sep 2012, 08:46 AM Reply Like
  • Modicum Stacker
    , contributor
    Comments (10) | Send Message
     
    "Either way you can't expect everyone to keep upgrading year after year."

     

    I would agree with you but I find upgrading to be quite profitable. I always renew at the earliest date, receive my subsidized phone, and then sell it at full MSRP. It's a quick $500. Until this becomes unprofitable, I don't see any slowdown in upgrades.
    24 Sep 2012, 12:51 PM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    Haha, that is brilliant... I should get my subsidized iPhone 5, sell it for 500-600 on ebay, and buy my 920, take profits and buy nokia stock.
    24 Sep 2012, 12:59 PM Reply Like
  • rrose39
    , contributor
    Comments (682) | Send Message
     
    somehow the word "brilliant" looks out of place in your comment.
    24 Sep 2012, 03:31 PM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    Could be... I'm a self described awful writer, and consider myself blessed to live in the age of lol, roflmao, wtf, and bbl.
    24 Sep 2012, 03:34 PM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    Exactly, this isn't true of any other electronic productline
    25 Sep 2012, 09:32 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    Go ahead.
    25 Sep 2012, 09:40 AM Reply Like
  • bgold1955
    , contributor
    Comments (1992) | Send Message
     
    Headlines if seen is 5m for weekend only. Add 2m in first 24 hours and who knows the additional pre orders after 1st 24 hours. Not sure but should be cleared up soon. At this time not certain it was a miss or not.
    24 Sep 2012, 08:47 AM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    I'm fairly sure that the 2 million is part of the 5 million In addition to
    24 Sep 2012, 09:23 AM Reply Like
  • bgold1955
    , contributor
    Comments (1992) | Send Message
     
    What I read was 5m Fri - Sun. Who knows for sure as really can't rely wholly on media this early in the story.
    24 Sep 2012, 09:45 AM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    There was a significant change, between this year and last year. Last year they managed to deliver the preorders before the opening weekend was ended. So the preorders counted as part of the Sales total. This weekend they couldn't deliver almost half of the preorders in time so you can add about another million to the total
    25 Sep 2012, 09:35 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (218) | Send Message
     
    The phone is not much different than the 4s. I'd still buy the 4s over the 5. A lot of people buying the 5 are the people that need the newest tech gadget and like to show off. Not worth the extra money in my opinion.
    24 Sep 2012, 08:49 AM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    If you have an upgrade for it, your only paying I think $200? That's pretty reasonable, if you don't have the upgrade the 4S is a great phone and is probably more then the common user will ever need.
    24 Sep 2012, 08:53 AM Reply Like
  • rrose39
    , contributor
    Comments (682) | Send Message
     
    I liked the 4S as well, but after a few days now I have come to greatly appreciate the new dimensions of the 5.

     

    Much easier to grasp than the 4S, and also lighter.

     

    Kudos to Jony Ive, et al.
    24 Sep 2012, 03:34 PM Reply Like
  • pirota
    , contributor
    Comments (150) | Send Message
     
    Apple misses expectations = my dream come true :)))
    24 Sep 2012, 08:52 AM Reply Like
  • bgold1955
    , contributor
    Comments (1992) | Send Message
     
    Go short then.
    24 Sep 2012, 09:01 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    You must have a pathetic life if a company missing expectations for two weeks sales of one product is a dream come true.

     

    Most people think of children and spouses as dreams come true. My golden retrievers were more important to me than any "missed expectations" on any stock I ever owned or didn't own.
    24 Sep 2012, 09:03 AM Reply Like
  • pirota
    , contributor
    Comments (150) | Send Message
     
    For me it means that only few million of earth citizens are those that are continually robbed by Apple while the larger part of population can continue living freely without having to pay Apple-tax - i.e. they don't have to pay for things they should not pay ...
    24 Sep 2012, 09:10 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    You missed on that point. The 5 million sold were stock, not ordered. They just didn't have enough on hand....

     

    Apple: 5 Million IPhone 5 Sales over Weekend, Supplies Sold Out
    8:52 AM ET 9/24/12 | Dow Jones
    By Drew FitzGerald

     

    Sales of Apple Inc.'s (AAPL) iPhone 5 topped more than five million during its first three days in stores, a new record that still undershot some analysts' estimates because of supply constraints.

     

    The company has sold out of its initial inventory, Chief Executive Tim Cook said, though most customers who preordered their iPhones had their devices shipped already.

     

    "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," Mr. Cook said in a statement. "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." ...

     

    ====================

     

    In other words, it's not a demand issue, it's a supply issue. Sorry to disappoint you.
    24 Sep 2012, 09:16 AM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    So I'm not clear, I was fairly certain that the preorders were included in the initial sales are they?
    24 Sep 2012, 09:27 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    The story from DOW Jones reads that it was a supply issue. That's clearly written. I can't guarantee what Dow Jones wrote is correct. But I also would need some reason to think they're wrong.
    24 Sep 2012, 09:34 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    Let's get into your illusion of "robbed". As far as I know Apple customers freely buy Apple products. No one holds a gun to their head and says they have to buy an iPhone.

     

    Are Lexus owners being robbed? Infinity buyers? Fiat? Rolex? If I buy an original Rembrandt oil am I being robbed when I can get a reproduction on the cheap?

     

    Do you think we should look at your purchases and judge your shopping?
    24 Sep 2012, 09:39 AM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    People need to ignore pirota... Obvious troll is obvious type of deal..

     

    The dude lives/breaths anti-Apple crap and is probably just upset he didn't get in below $500 ( I feel for him I don't own AAPL and am mad I didn't get in below $500 either).
    24 Sep 2012, 09:43 AM Reply Like
  • bobbarnett
    , contributor
    Comments (5) | Send Message
     
    Folks-here we have an idiot
    24 Sep 2012, 09:48 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    OMG ... the was my 666th post. Had I noticed that was going to happen I would have put some satanic reference in there.
    24 Sep 2012, 09:50 AM Reply Like
  • pirota
    , contributor
    Comments (150) | Send Message
     
    I am very sorry but Apple missed expectations ... have a nice day (as I probably will :))
    24 Sep 2012, 10:28 AM Reply Like
  • mille58475
    , contributor
    Comment (1) | Send Message
     
    you are the biggest idiot among all the commenters
    24 Sep 2012, 10:52 AM Reply Like
  • raincity
    , contributor
    Comments (217) | Send Message
     
    free will pirota. Nobody is forcing you to buy anything. get a life.
    24 Sep 2012, 11:35 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    Now you're changing your story. You care about "expectations", you don't really care how many iPhones Apple sells.

     

    I care about how many iPhone Apple sells, so it looks like we both win.
    25 Sep 2012, 09:53 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    pirota has a personality disorder. I doubt it's fixable.

     

    At a minimum, it's an insecurity about the product he picked out. As Apple will sell 10s of millions of iPhone 5, he lays around looking at his POS smartphone that he can't figure out how to use and wondering if he'll even get the next Android update ... which he won't.
    25 Sep 2012, 09:57 AM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (517) | Send Message
     
    Guys it's Sept 23rd with 8 more days in the quarter

     

    5M is a good number for the few days the 5 has been available. I expect when the quarter's done over 10M, as much as 13M will be delivered.

     

    This is much ado about nothing
    24 Sep 2012, 08:52 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2883) | Send Message
     
    Apple sold 5+ M iphone 5s during the first weekend, but do they count those backed up orders as sales or not?
    24 Sep 2012, 08:52 AM Reply Like
  • bgold1955
    , contributor
    Comments (1992) | Send Message
     
    Good question. Tried to get a 5 - 16 g, white silver and indicated 3-4 weeks for delivery to the store as the store was out.
    24 Sep 2012, 08:56 AM Reply Like
  • oregondean
    , contributor
    Comments (103) | Send Message
     
    Yes, they are orders but Apple does not count them as revenues (sales) until they ship.

     

    I'm impressed they delivered 5M phones over the weekend!

     

    There are two more weeks to ship product and add to this quarter/year's profits.
    24 Sep 2012, 09:50 AM Reply Like
  • EJC1645
    , contributor
    Comments (82) | Send Message
     
    Let the "chicken littles" bid the share price down.
    Its called OPPORTUNITY !!!
    24 Sep 2012, 08:58 AM Reply Like
  • thgilnoom
    , contributor
    Comments (165) | Send Message
     
    Oh, they only sold 5 million. I better short the stock. Are you nuts? That's a great number and a great success. I don't know what Apple has to do to get a little respect.
    24 Sep 2012, 09:01 AM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    it's the problem with being the star, expectations that continue to be blown out will only get more outlandish. Eventually everything Apple does will fall short of expectations and this will become common.
    24 Sep 2012, 09:03 AM Reply Like
  • chopchop0
    , contributor
    Comments (3243) | Send Message
     
    I think it's about expectations vs actual results.
    24 Sep 2012, 09:12 AM Reply Like
  • Dean Scarpinato
    , contributor
    Comments (372) | Send Message
     
    Maybe Paul McCartney should have left the Beatles when reporters said they were yesterdays news (1966) bc they had 3500 empty seats at Candlestick Park.
    24 Sep 2012, 09:20 AM Reply Like
  • Monsieur Dupond
    , contributor
    Comments (4) | Send Message
     
    At least they won't have to beat 8M next time!
    24 Sep 2012, 09:05 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    If Gene Munster says 8 million next time, they'll have to beat 8 million.

     

    To some extent, Apple might be better off if they did what Amazon does .... "We sold far more than we expected, but we're not going to tell you how many, so there."
    24 Sep 2012, 09:42 AM Reply Like
  • CMacintosh
    , contributor
    Comments (89) | Send Message
     
    Apple counts sales as "delivered" into customer hands.
    24 Sep 2012, 09:20 AM Reply Like
  • mrmerc
    , contributor
    Comments (13) | Send Message
     
    5 Million first weekend, that is a new record! who says they missed expectations? Someone who is a perma shorter or a analysts who owns zero shares! its down 2.2% as I write this if - 5% is reached I will add.
    24 Sep 2012, 09:21 AM Reply Like
  • BRASIL
    , contributor
    Comments (62) | Send Message
     
    Seems like they did not include the phones in transit..not yet delivered...could be a rather large number.
    24 Sep 2012, 09:22 AM Reply Like
  • SunnydaysBlueskies
    , contributor
    Comments (2) | Send Message
     
    People are overreacting now as. Over 5 million phones for a weekend is actually great. No idea who put that 8+ million out in the market anyways. That and a combination of bad PR on Foxconn leads to sell now pre-market. Give it a couple of weeks and you see the stock comfortably above $700.
    24 Sep 2012, 09:23 AM Reply Like
  • apple_investor
    , contributor
    Comments (184) | Send Message
     
    5 million the first 3 days. Maybe another 5 million by end of quarter - 20 more countries on Friday. Should revive this Q's numbers - maybe 28 million iPhones for this Q. Easily $45 for the fiscal year, maybe $46. Next quarter, 50-60 million iPhone units, and same for the quarter after that. Everything is right on track.
    24 Sep 2012, 09:26 AM Reply Like
  • lsnylic
    , contributor
    Comments (14) | Send Message
     
    if the naysayers are so smart why don't they short the stock and see what happens to them .!
    24 Sep 2012, 09:27 AM Reply Like
  • gensearch2
    , contributor
    Comments (1447) | Send Message
     
    The market is starting to figure out that 5 million delivered isn't all that bad. Low for the day was 683, Apple is trading right now over 691.
    24 Sep 2012, 09:46 AM Reply Like
  • wbrowder@swbell.net
    , contributor
    Comments (30) | Send Message
     
    with one of there main parts suppliers Foxconn closing because of 2000 employees drawling--- may continue to slow production into the 4th quarter. Then, we may see a concern AAPL fandome.
    24 Sep 2012, 09:31 AM Reply Like
  • bobbarnett
    , contributor
    Comments (5) | Send Message
     
    Except 1/2 the reports say the Foxconn fighting was at the dormitories, not the factory
    24 Sep 2012, 09:49 AM Reply Like
  • oregondean
    , contributor
    Comments (103) | Send Message
     
    That's one of over 70 plants - and we don't know (yet) if they make Apple products (or what part of an Apple product) yet.
    24 Sep 2012, 09:53 AM Reply Like
  • Harel
    , contributor
    Comments (18) | Send Message
     
    The fiesta around the iPhone seems to fade away.
    See also the court battles Apple<----->Sams...
    At least the lawyers make a buck.
    That is true for mid to long range.
    What next?
    Steven,may he rip,is not around anymore.
    The 5 seems to be the end of his legacy.
    Any leaks on the new wonders?
    24 Sep 2012, 09:56 AM Reply Like
  • tclark13
    , contributor
    Comments (133) | Send Message
     
    Whats next? Iphone 6 of course.
    24 Sep 2012, 10:31 AM Reply Like
  • UncleFred
    , contributor
    Comments (163) | Send Message
     
    In a comment to an erlier SA article, I predicted that supply constraints would limit initial sales, and that the only time to look at AAPL iPhone 5 sales and get an honest view would be January '13. When there is a waiting line for something, as a rule, that stimulates even more demand. Personally, I am waiting for the crowds to subside before ordering two unlocked iPhone 5s to replace the 3g and 3gs phones my wife and I are currently using. These old phones still work very well. No emergency to replace them. I suspect there are many, many people like myself that are content to sit back and let the dust settle before replacing their older, still good-enough phones. So, once again, wait 'til January '13 for a true picture of iPhone 5 sales. The only other comment I can add is people I know that switched from AAPL to android phones soon sold them to go back to the AAPL ecosystem, where there are less frequent re-boots, and everything works together, seamlessly. AAPL is kinda like the Roach Motel: once you go in, you can't (well, don't want to) get out.
    24 Sep 2012, 10:49 AM Reply Like
  • SunnydaysBlueskies
    , contributor
    Comments (2) | Send Message
     
    One thing I am wondering about the 8 million forecast is: When Apple launched the new iPhone the stores were sold out this weekend and online they were sold out within a few hours.

     

    Now: What was the 8 million forecast based on? Assuming there was enough supply (that is all *immediately* available phones to be shipped online and stock in the stores) and assuming that number is 8 million or higher, then Apple did indeed sell that figure. Cause they were quickly sold out!

     

    Assuming there were never that amount of phones available in stock to begin with, then why would someone come up with that forecast in the first place?

     

    Let aside all the negative press on Google Maps and other potential "issues". I remember when the iPhone 4S was launched the shares also dropped, just to gain new records a few weeks down the road. People sometimes expect the impossible but I am sure cash wise the company will achieve new records with their new smartphone.
    24 Sep 2012, 11:10 AM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    The forecast of 8 million which was actually reasonable and probably achieved or close to it if you count all of the phones not getting in customers hands was a simple doubling of last years 4 million initial weekend number.

     

    last year's initial weekend sales included all of the preorders because they had enough time to get the preorders to customers before the weekend ended
    25 Sep 2012, 12:14 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    The dream buying opportunity when it dumped into the low 680's immediately after the 5M sales announcement. This is all a supply side issue. I was in an Apple store on Friday and their stock of Verizon and ATT phones was completely sold out. All that was available was Sprint. Same thing happened on Saturday, but at a different Apple store. Gotta love the knee-jerk reaction of investors who sell w/o understanding why they're selling and what's to happen when the supply gets filled. Maybe they weren't paying attention to the several blocks long lines all over the world.
    24 Sep 2012, 11:10 AM Reply Like
  • Efrain Rojas
    , contributor
    Comments (197) | Send Message
     
    This isn't journalism, this is horse manure. Apple down on projections? Someone let me know who's projections they are referring to. Also, did this so-called journalist poll every prospective buyer and seller of Apple stock to arrive at the premise that a general dissatisfaction with sales led to a statistically inconsequential price decline?
    24 Sep 2012, 12:01 PM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    Not sure who the projections were done buy, but SA just had a blurb that the guy who made those projections was assuming Apple would include the pre-ordered sales in their numbers (which supposedly they haven't).

     

    So there was more a mis-communication or misunderstanding that outlandish expectations.
    24 Sep 2012, 12:28 PM Reply Like
  • alphaRAJU
    , contributor
    Comments (428) | Send Message
     
    Mr Cook should have listened to the pundits that they are going to sell 250 million iphone 5s..... and should have produced 50 million instead of running out of stock @ 5 million. I thought he was a supply guy! Maybe the ship was using imaps and got lost in the ocean. LoL
    24 Sep 2012, 02:36 PM Reply Like
  • wigit5
    , contributor
    Comments (3987) | Send Message
     
    buy iPhone 5 $600, sell on chinese ebay for $1200. Profit.
    24 Sep 2012, 02:59 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    The analyst projection of selling/delivering/shi... 10 M in a 3 day period may not even be logistically possible. That's 3.3M phones a day, or 138,889 an hour or 2,314 phones a minute, every minute of the day for 3 consecutive days.

     

    Let's assume that the 2 M phones that were preordered were all signed for and received (ridiculous, of course). That leaves 8 million phones to be sold in stores. That's 2.7M sold per day, 111,111 per hour and 1,851 every minute! People work on Fridays and go to church on Sundays.

     

    Assume for the sake of argument that there are 10,000 stores worldwide that sell iPhones (which is probably grossly overestimated). That means that on average each store sold 800 phones. We know that a lot of stores receive very limited supplies of phones. Apple stores receive the big bulk shipments, but there are only 300 or so Apple stores.

     

    Conclusion: In order for Apple to sell 10 million phones in a 3 day period: (1) 8 million phones would've had to have been shipped to stores in an extremely small window of time (2) The stores would've had to turn those phones into sales at an unrealistic rate (3) Most of the 2 million preordered phones have already been signed for (4) The 300 Apple stores EACH would've probably had to have sold about 10,000 phones which is not physically possible and they probably received no more than 2,000 phones apiece.

     

    A 10,000,000 projection in a 3 day period was a fantasy. Keep selling those shares!
    24 Sep 2012, 03:23 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1595) | Send Message
     
    Thank you for working out the numbers to show the ridiculousness of some of the expectations. Reminds me of some of Nokia's valuations back in the late 90's/early 2000's where to justify its share price, more than 3x the population of Earth would all need to purchase Nokia phones.

     

    My bet is, when the next quarterly report comes out, stock will blow past higher again because it will be a record quarter.
    24 Sep 2012, 04:11 PM Reply Like
  • Applocrat
    , contributor
    Comments (782) | Send Message
     
    Thank you for this wonderful comment.
    25 Sep 2012, 12:17 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|