Source - http://online.wsj.com/
By - DON CLARK
Category - Santa Clarita Local Colleges
Posted By - Hampton Inn Santa Clarita
By - DON CLARK
Category - Santa Clarita Local Colleges
Posted By - Hampton Inn Santa Clarita
Santa Clarita Local Colleges |
Apple Inc.
AAPL +4.97%
may have a hit with its new iPhone 5S, but prospects for the lower-price iPhone 5C are less clear.
Those
conclusions emerged after Apple said Monday that it sold nine million
of the two handsets in their first three days on the market—well above
what analysts had anticipated.
The company also said that its quarterly sales and profit margin
would likely be at the high end of the company's previous forecast.
Apple in July projected revenue between $34 billion and $37 billion and
gross margin between 36% and 37%.
The company's stock jumped $23.23, or 5%, to close at $490.64 on the Nasdaq Stock Market.
Apple also said that more than 200
million of its devices already were running iOS 7—a free overhaul
released last week of the operating system used on iPhones, iPads and
iPod Touch devices.
Apple's record volume for the new
iPhones compared with five million iPhone 5 models sold on its opening
weekend a year ago. Analyst had predicted that six million to seven
million of this year's models would be sold in the debut weekend.
But there are caveats with the Apple
figures, among them the decision to sell the phone in China in the
opening weekend this year.
And beyond sales by the company to
consumers from its own stores and website, Apple's count includes sales
to other retailers. While Apple appears to have exhausted inventory of
the iPhone 5S, the nine million units include unsold iPhone 5C models at
non-Apple retailers, analysts said.
"If you adjust for the 5C, it's not the
blowout that it initially looks like," said Gene Munster, an analyst at
Piper Jaffray. He estimated that three million to four million iPhone
5C models are with retailers and that the number of both handsets in the
hands of consumers was 5.5 million.
Apple didn't break down its sales other
than to say that demand for the iPhone 5S exceeded supply. "Thanks to
all our amazing customers for the fantastic weekend," Chief Executive Tim Cook, a new Twitter user, said in a tweet Monday.
Assessing demand for the phones is particularly difficult because
more countries are involved this year: 11, compared with nine for the
iPhone 5 release last year. And China, in particular, is a huge
smartphone market.
Toni Sacconaghi, an analyst at Sanford C. Bernstein,
said the original iPhone 5 sold two million units in its first weekend
of sales in China. He estimated that China likely contributed a similar
amount this year.
The cautions aside, analysts still
said the rollout was stronger than they expected, as indicated by longer
lines at stores than last year. While some Apple analysts were
disappointed that the iPhone 5C wasn't priced low enough to attract a
new class of buyers, they said there remained a substantial number of
iPhone users who wanted to upgrade their phones and that new trade-in
programs made the process less expensive.
"People forget that there is a massive
installed base out there," said Brian Marshall, an analyst at ISI
International Group. As a result, when "each phone comes out, the launch
gets bigger and bigger."
Several signs indicated strong
customer preference for the iPhone 5S. Cantor Fitzgerald said its survey
of buyers in New York found that 88% bought that model but that Apple's
figures suggested that the less-expensive iPhone 5C also sold well.
Boston-based research firm Localytics
said data generated from apps downloaded by users over the weekend
indicated that the iPhone 5S sold 3.5 times as many units as the 5C.
Raj Aggarwal, the firm's chief executive, cautioned that
the initial data didn't necessarily show the long-term prospects for
the iPhone 5C since sales on the opening weekend could have been
distorted by hard-core buyers. "The people who are excited enough to
stand in line on a Friday morning, these are the early adopters," he
said. "They are more likely to want the more sophisticated top-end
device."