Many people across the globe start thinking about buying presents for their love ones as early as September in preparation for the holiday season. The new iPhone 5 by Apple Inc. (NASDAQ:AAPL) is definitely one of the things included in the “wish list” of many consumers. You might not agree, but many consider the iPhone 5 as one of the must have gadgets.

iPhone 5

Shaw Wu, an analyst from research firm Sternee Agee, expects an increased consumer demand for the iPhone 5 during the holiday season, despite the halfhearted reviews and comments that the mobile device lacks a “wow factor.”

Wu raised his December quarter estimate for the iPhone 5. According to him, Apple Inc. (NASDAQ:AAPL) is capable of selling 46.5 million during the holiday season, 500,000 units more than the 46 million previous estimate. He also increased his price target for Apple Inc. (NASDAQ:AAPL) stock to $840 per share. Wu cited that the product is a “significant update” and it has the capability to “drive a product cycle.” He thinks many underestimated the iPhone 5.

Wu pointed out in his research note to investors that in the past tech bloggers and reviewers also provided negative feedbacks about the iPhone 4 due to its antenna problems. The Siri update on the iPhone 4S was considered “minor” and “disappointing. Despite all the criticisms, Wu pointed out that Apple Inc. (NASDAQ:AAPL) made a successful sales record on both products. He thinks, the iPhone 5 will deliver a similar sales performance.

Wu wrote in his remarks, “We continue to believe the iPhone 5 will put a lot of pressure on competitors, where it will incrementally capture a portion of customers attracted to Android/Windows smartphones with larger screens and/or 4G LTE wireless.”

According to Wu, the Cupertino-based company might encounter production challenges for the iPhone 5, due to limited supply of in-cell touch screens. During the current September quarter, Apple is expected to ship 27 million iPhone 5 units.

During the first day of sales, the iPhone 5 already proved its attractiveness to customers. The available iPhone 5 units for the September 21 launch day were sold-out during the first hour of the pre-order sales. Apple Inc. (NASDAQ:AAPL) recently announced that it received 2 million preorders for the first 24 hours of sales for the iPhone 5. The result doubles the 1 million pre-order first day sales performance of the iPhone 4S. Apple started shipping its pre-order units from China last Sunday. Consumers are expected to receive their mobile devices on or before September 21.