Analyst Says Perhaps Millions of iPhone 5 Pre-Orders Still in Transit, Not Included in Announced Sales
Earlier today, Apple officially announced sales of over five million iPhone 5 units during its launch weekend, easily topping the iPhone 4S debut from last year but falling short of many analysts' expectations.
ISI Group analyst Brian Marshall theorizes that the apparent shortfall compared to expectations may stem from Apple's rapid sellout of its own launch day pre-orders, which occurred in just about an hour. Apple announced two million pre-orders for the iPhone 5 in the first 24 hours of availability, a figure that was used by analysts to predict blockbuster opening weekend sales of 6-10 million units.
Marshall notes that many of those first-day pre-orders, as well as ones made after that date, have yet to be delivered, and thus Apple can not yet count them as sold. A brief "clarification" from Marshall reads:
[R]ecall the 5mil+ iPhone 5 reported sales only takes into consideration: 1) what was sold into partners (e.g., retail outlets, carriers, etc.), 2) sold in AAPL retail stores, and 3) direct to customers only if they signed for the device. Importantly, this doesn't take into consideration units in delivery direct to customers (i.e., AAPL must have signature of acceptance by customer before it is counted as a sale) and we estimate units in transit could be in the millions currently.
Some of those "late" iPhone 5 pre-orders through Apple that had been quoted delivery in early October have already begun shipping with estimated delivery dates of September 27. Those units will not, however, be counted as sales by Apple until they are delivered.
Update 7:13 AM: Piper Jaffray analyst Gene Munster, who was responsible for the widely cited 6-10 million unit estimate, has released his own note expressing similar sentiments. He believes that up to a million iPhone 5 pre-orders remain in transit and notes that in-store supply was tighter for the iPhone 5 than for the iPhone 4S, holding back iPhone 5 sales numbers.
We believe there are two factors that negatively impacted the number. First, our sales expectation assumed that Apple would include all phones pre-ordered online. We believe that this may have been up to 1 million additional units as units pre-ordered after the middle of the first day were projected to be available in October. Second, we noted 1.25 days of Apple Retail inventory compared to 2.5 days during the 4S launch. Our 8 million estimate assumed full weekend availability and the counting of all online pre-orders. We believe that if supply were not a constraint and Apple included all pre-orders, the launch weekend number would have been closer to 7-8 million, assuming ~1 million October pre-order sales and an additional 1-2 million units at retail.
Popular Stories
The end of an 18-year era is on the horizon for the iPhone.
Apple reportedly plans to announce a new iPhone SE as soon as next week, and the device is expected to feature a full-screen design with Face ID, instead of a Touch ID home button. That means Apple will no longer sell any new iPhone models with a home button, for the first time since the original iPhone launched.
The home button...
Oppo has confirmed a February 20 global launch for its Find N5, which the company claims is the world's thinnest device in the foldable phone category. The phone is expected to be re-branded as the OnePlus Open 2 in the US.
The Chinese vendor has been teasing the device in the last few weeks, touting its waterproofing and nearly invisible display crease, and highlighting its thinness by compa...
There continue to be signs of a new MacBook Air with an M4 chip, indicating that we could see the machine launch in the not too distant future. A private account on X today shared the identifiers that the MacBook Air will use, and those identifiers correspond to the M4 chip.
According to the source, both the 13-inch MacBook Air and the 15-inch MacBook Air will be equipped with Apple's...
As the wait continues for Apple's long-rumored, fourth-generation iPhone SE, French electronics retailer Boulanger has prematurely published a product listing for a "new" model of the iPhone SE. The placeholder page says the device is "coming soon," but it offers no further information, and the price shown is obviously not real.
The listing was spotted by a reader of the French technology...
Apple today released watchOS 11.3.1, a minor update to the operating system that runs on the Apple Watch. watchOS 11.3.1 is compatible with the Apple Watch Series 6 and later, all Apple Watch Ultra models, and the Apple Watch SE 2.
watchOS 11.3.1 can be downloaded by opening up the Apple Watch app and going to General > Software Update. To install the new software, the Apple Watch needs to...
Apple today released macOS Sequoia 15.3.1, a minor update to the macOS Sequoia operating system that came out last September. macOS 15.3.1 comes a few weeks after the launch of macOS Sequoia 15.3.
Mac users can download the macOS Sequoia update through the Software Update section of System Settings. Apple has also released macOS 13.7.4 and macOS 14.7.4 for those who are...
Apple's long-awaited Powerbeats Pro 2 are finally expected to be announced this Tuesday. Ahead of time, one lucky Walmart customer was able to get their hands on the earbuds early, according to a since-deleted Reddit post over the weekend.
A leaked image of the Powerbeats Pro 2 in Electric Orange
"My local Walmart had them in the cage," the Reddit user explained. "I asked if I can buy them...
Apple today released iOS 18.3.1 and iPadOS 18.3.1, minor updates for the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.3.1 comes two weeks after Apple released iOS 18.3.
The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iPadOS 17.7.5 for those still running...
Apple today increased its estimated trade-in values for select Mac models in the United States, with the full changes outlined below.
Apple says the extra trade-in credit for select Macs is available with the purchase of an eligible new Apple device through April 2.
The trade-in values increased by between $10 and $50.
Model
New Value
Old Value
MacBook Pro
Up to $925
...