Apple Inc. (NASDAQ:AAPL) released the first weekend sales data of its new iPhone 5S and iPhone 5C yesterday, saying it sold over 9 million units in the opening weekend. After an unconventional launch last week, the phones went on to post better-than-expected performance. Cantor Fitzgerald analyst Brian J. White believes that the shares of the company should advance following the impressive numbers. The numbers further strengthen the popularity of the iPhone 5C, which was criticized at the time of launch.
Numbers aptly answers critics of iPhone 5C
The sales numbers for Apple Inc. (NASDAQ:AAPL)’s iPhone 5S and 5C are 80 percent more compared to last year’s sales of 5 million units during the opening weekend, which was then a record for Apple. The numbers are more than the expectations of analysts, who guessed 6 million to 6.5 million. According to analysts, “this is a very print for Apple.”
iPhone 5C was criticized unfairly during the time of launch, but the numbers muted the critics and skeptics. The iPhone 5C was available for pre-order from September 13th and according to the analysts weekend sales might have boosted the demand. The iPhone 5C was criticized based on the point that it is too expensive, but it defied all the forecasts.
For analysts, correctly estimating the demand this time was more complicated as Apple Inc. (NASDAQ:AAPL) launched two iPhones in 11 countries—including China—straying from earlier trends. In the previous year, the iPhone was launched in just nine countries. Stores are facing a supply crunch in the wake of huge demand, and Apple said that online orders will be shipped first in the coming weeks. On Monday, a long queue was formed in Tokyo, New York, San Francisco and other cities for the high-end 5s and the mid-tier 5c, says a report from Reuters.
Apple raises the revenue forecasts
Following the record sales numbers, Apple Inc. (NASDAQ:AAPL) said that, for the fourth quarter, it is revising its revenue forecast from $34 billion to $37 billion. Record iPhone sales and the revised forecast are evidence of the popularity of Apple at a time when the smartphones powered by Google’s Android and of Samsung have faced a decline in demand fearing smartphone market saturation.
“The critics have told you Apple lost its magic,” said Daniel Ernst, an analyst with Hudson Square Research told Reuters. “Customers are telling you something very different. Clearly, people like the product. That sentiment is almost more important than the number.”