New iPhone sales top forecast, Apple polishes forecast

iPhone5c_34L_AllColors_PRINT

Apple Inc. sold a higher-than-expected 9 million iPhone 5s and iPhone 5c models in the first three days following their Friday launch, prompting the company to issue a more optimistic financial forecast.

Apple shares rose 4.5 percent to $488.64 in early trading on Monday following the news.

Sales of the new models were nearly double those of the iPhone 5 in the first weekend after its launch a year ago. The iPhone 5 sold 5 million in its first three days on the market.

“It’s a great number,” Colin Gillis, an analyst with BGC Partners, of the sales figure for the 5s and 5c. “We have been saying they will be selling every 5s they can make and it looks like that is the case.”

Wall Street analysts had expected Apple to sell about 6 million of the two new iPhones.

Apple tweaked its financial forecast to reflect the higher sales, an unusual move for the company. It said revenue in the fiscal fourth quarter would be near the high end of its previous forecast of $34 billion to $37 billion. It said gross profit margin would come in at the top of its previous forecast of 36 percent to 37 percent.

Analysts’ average revenue forecast is $36.10 billion, according to Thomson Reuters I/B/E/S.

Daniel Ernst, an analyst with Hudson Square Research, said iPhone sales show Apple still has a deep connection with its customers.

“The critics have told you Apple lost its magic,” he said. “Customers are telling you something very different. Clearly, people like the product. That sentiment is almost more important than the number.”

Demand for the iPhone 5s has exceeded initial supplies, and many online orders are scheduled to be shipped in the coming weeks, Apple said.

On Friday, long lines formed outside stores in Tokyo, New York, San Francisco and other cities for the new top-of-the-line 5s and the less-expensive 5c. It was the first time Apple launched two iPhone models simultaneously.

The gold-colored version of the 5S, which also comes in silver and gray, was sold out as of Friday and will now ship only in October, according to Apple’s website. As of Monday, the two other colors were also set to be shipped only in October.

“The demand for the new iPhones has been incredible, and while we’ve sold out of our initial supply of iPhone 5s, stores continue to receive new iPhone shipments regularly,” Apple Chief Executive Tim Cook said in a statement. “We appreciate everyone’s patience and are working hard to build enough new iPhones for everyone.”

MORE COUNTRIES

The company said more than 200 million iOS devices are now running the upgraded mobile operating system iOS 7, which was rolled out just before the iPhone launch.

Apple did not break out separate sales figures for the 5s and 5c. The 5s, whose price starts at $199, offers a touch ID that scans a user’s fingerprint to unlock the phone. The 5c, which starts at $99, comes in an array of colors.

Apple for the first time simultaneously launched the new iPhones in China, a crucial market, along with the rollout in Hong Kong, Singapore, the United States, Australia, Japan, UK, Canada, Germany, France and Puerto Rico.

It previously launched it phones in China a few months after the U.S. launch.

The more optimistic margin forecast should allay investor concerns that, at just $100 les than the 5s, the 5c will draw buyers away from the premium gadget.

“If Apple could ship so well without even having a larger screen iPhone, which we think it could deliver next year, then Apple is getting over a key hump,” Shebly Seyrafi, an analyst with FBN Securities, said in a note to clients. “We believe that the immediate availability of the phone in China is also a key driver of the strength.”

 


News
Entertainment
Sports
Lifestyle
News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

News

Mets mascot Mr. Met target of Bill Clinton…

Mets mascot Mr. Met has told how he ended up in the crosshairs of a Secret Service sniper rifle. The man behind the Mr. Met…

International

Jews in eastern Ukraine ordered to register, Kerry…

Secretary of State John Kerry condemned reports that Jews in eastern Ukraine had been ordered to register with the authorities "or suffer the consequences."

National

Chelsea Clinton pregnant with first child

Chelsea Clinton is pregnant with her first child.

Movies

Review: 'Transcendence' is not stupid but sometimes lacks…

The cyberthriller "Transcendence" explores artificial intelligence, nanotechnology and other ethical quandaries, but has too much ambition, if anything.

Television

Dick Wolf to bring fictionalized world of 'Law…

A&E has ordered a pilot called "D.O.A." from "Law and Order" mastermind Dick Wolf that will focus on real detectives reexamining cold cases. A trio…

Television

Shane West talks WGN America's 'Salem'

The actor on history lessons, a new network and showing his butt.

Music

Both feet on the ground with Aimee Mann…

What began with a cool double-bill of Ted Leo opening for Aimee Mann morphed into a full-fledged collaborative project that they're calling The Both. “There…

MLB

MLB video highlights: Red Sox score two in…

Lester shines in Red Sox win over White Sox

Sports

2014 Boston Marathon preview: Elite American, International runners…

2014 Boston Marathon: Elite American, International runners to watch

NBA

2014 NBA Finals odds: Ranking which playoff teams…

2014 NBA Finals odds: Ranking which playoff teams have the best shot at a championship. The Thunder, Clippers, Heat and Rockets lead the way.

NFL

2014 Patriots, full NFL schedule release date announced

2014 Patriots, full NFL schedule release date announced

Style

Light-up nail art syncs with phone

This Japanese technology syncs light-up nail art with your phone.

Wellbeing

Why is dance cardio taking off in NYC?

Instructors at some of the city's hottest classes explain why.

Travel

Earth Day travel in the Florida Keys

See why this eco-friendly destination deserves your attention.

Tech

Sorry, Facebook — FarmVille goes mobile with 'Country…

Zynga has released a version of the hit "FarmVille" tailored for smartphones and tablets in the hope of reaping a bumper crop of players.