iPhone 5 Sales Predicted to Hit 8 Million Units in Launch Weekend
Following Apple's announcement earlier today that it took two million iPhone 5 pre-orders in the first 24 hours of availability, Piper Jaffray analyst Gene Munster has published a new research note predicting that Apple will achieve sales in the range of 6-10 million units for the opening weekend, with the mid-range number of 8 million units being used for modeling purposes. Munster bases his predictions on the strong pre-order numbers and comparisons to last year's performance for the iPhone 4S.
Given the 2 million pre-orders, we remain confident that Apple can deliver 8 million (range of 6-10 million) iPhones in the launch weekend. The reason we are confident in the 8 million is two-fold. First, initial 24 hour pre-orders for the iPhone 5 were up 100% y/y from the iPhone 4S. Last year, pre-orders accounted for 25% of total weekend launch unit sales. Assuming the same initial pre-order/retail distribution, the pre-order total would suggest 8 million launch units.
Munster notes that with Apple's fourth fiscal quarter of 2012 coming to a close at the end of September and the company already quoting shipping estimates of 2-3 weeks for new iPhone 5 pre-orders, some of the launch weekend total may actually bleed over into the following quarter, as Apple recognizes revenue once orders ship to customers.