iPhone 5 sales disappoint as Apple fails to produce units fast enough to meet demand

“Apple Inc sold out of its latest smartphone, with more than 5 million iPhone 5s sold in the three days since it hit stores, the company said on Monday,” Jennifer Saba and Sinead Carew report for Reuters. “While sales were solid, analysts were concerned that Apple was unable to produce the new phone fast enough to meet demand.”

“The early total for the iPhone 5 topped sales of the iPhone 4S, which sold more than 4 million units in its first weekend after Apple introduced it in October 2011,” Saba and Carew report. “Expectations for new Apple products are so high that Wall Street appeared not to be wowed by the latest numbers. Investors sent shares of the stock down 1.4 percent at $690.14 in mid-morning trade. ‘It appears investors were disappointed with the slowdown in growth in the first weekend,’ said BTIG analyst Walter Piecyk.”

Saba and Carew report, “‘We believe that sales could have potentially been much higher if not for supply constraints,’ William Power, an analyst with Baird Equity Research, wrote in a note. He forecast Apple selling 8 million to 10 million units in the fiscal fourth quarter ending in September. One of Apple’s key suppliers for screens, Sharp Corp, is struggling with high costs and scrambling to raise funds to pay debt.”

“Apple signaled last week that pre-orders outstripped initial supply and that many phones would not be available until October,” Saba and Carew report. “On Friday, fans lined up at stores in cities around the world to get their hands on the new phone, which is thinner and lighter and has a bigger screen.”

Read more in the full article here.

Related articles:
Analyst: Why Apple whiffed on iPhone 5 sales – September 24, 2012
Apple iPhone 5 misses analysts’ estimates with over 5 million units sold in first weekend – September 24, 2012
Apple: iPhone 5 sales exceed five million units in first weekend; demand exceeded initial supply – September 24, 2012

30 Comments

  1. I don’t usually comment on dumb ass analysts’ statements, but S & C’s comments are ridiculous.

    Sorta like, you get fixed up on a blind date. You tell your date “I’m worth a billion dollars”. Your date says, “Damn, I’m disappointed, I was told you were worth two billion”.

  2. You people keep laughing about how ridiculous it is, but yet you see the result of how easy it is to manipulate Apple stock. Just keep listening to Gene Munster spout insane numbers about Apple product sales. Somebody definitely believes that five million iPhone 5 unit sales is a major fail and we have the share price drop to prove it. Meanwhile, Google’s share price is literally flying because… well, I’m not really sure why, but that’s a good thing for Google investors. If investors believe that Google is a better company to invest in than Apple, then Apple shareholders definitely have a problem. There really isn’t much more that Apple can do except to sell a lot more products and I have a feeling it still won’t be enough to please Wall Street.

    Google’s blind date is definitely more attractive than Apple’s blind date because in the eyes of the beholder (WS) she is.

  3. 1. Unlike most other cell phone makers, an iPhone customer will not accept a substitute, so these sales are not ‘lost’, merely postponed. Apple doomed???? Nah.
    2. A $12 drop in stock value is less than 2%. The Dow swings that much regularly. Hell, oil has moved 10% in the last few days.

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