News / Economy

Apple Polishes Forecast After Selling 9 mln New iPhones

First customers of the Apple store in Oberhausen< Germany, are all smiles with their new iPhones on Sept. 20, 2013.
First customers of the Apple store in Oberhausen< Germany, are all smiles with their new iPhones on Sept. 20, 2013.
Reuters
Apple Inc sold 9 million new iPhones in an opening weekend for the product that included China for the first time and almost doubled sales from the last iPhone launch, and the company issued a more optimistic financial forecast.
 
Apple shares jumped more than 4.6 percent after the company said revenue in the fiscal fourth quarter would gravitate towards the high end of its previous forecast for $34 billion to $37 billion.
 
Apple, which began selling the top-tier iPhone 5s and cheaper, multi-hued iPhone 5c on Friday, rarely adjusts its outlook in the middle of a quarter. Since CEO Tim Cook took the reins, the world's largest tech company has begun to court Wall Street more visibly.
 
“The critics have told you Apple lost its magic,” said Daniel Ernst, an analyst with Hudson Square Research. “Customers are telling you something very different. Clearly, people like the product. That sentiment is almost more important than the number.”
 
Sales of the new models were nearly double those of the iPhone 5's 5 million in the first weekend after its launch a year ago, and far surpassed the roughly 6 million that analysts had projected.
 
The record unit sales and beefed-up forecast reinforced expectations of strong demand for Apples latest gadgets. Critics had said the iPhone 5c was priced too high to take advantage of pent-up demand in emerging markets.
 
Apple, which had grown notorious for providing conservative estimates that it routinely overshot, had resolved to improve its guidance for investors. Analysts have said the change will help rein in some over-the-top financial expectations.
 
The forecast for Apple's latest iPhone launch proved trickier than in the past for analysts, because the company introduced two models simultaneously in 11 countries including the crucial Chinese market. Apple launched iPhone 5 in just nine countries.
 
Another factor was that this time around, Apple signed on NTT Docomo, Japan's largest mobile carrier.
 
China joined the rollout that included Hong Kong, Singapore, the United States, Australia, Japan, Britain, Canada, Germany, France and Puerto Rico. Previously, Apple began selling phones in China only months after the global launch.
 
“We underscore one important caveat for investors: Apple's iPhone seasonality is likely to be exaggerated this cycle because of the addition of NTT DoCoMo, and particularly because of the early launch in China,” said Bernstein Research's Toni Sacconaghi, who has an “outperform” rating on Apple.
 
“Although upside exists for the September and December quarters, the risk exists that the fall-off in iPhone sales beginning in the March quarter could be more acute than history, potentially resulting in some downside to estimates.”
 
Supply limited
 
Demand for the iPhone 5S has exceeded initial supply and many online orders are scheduled to be shipped in the coming weeks, Apple said. On Friday, long lines formed outside stores in Tokyo, New York, San Francisco and other cities for the new top-of-the-line 5s and the less-expensive 5c. It was the first time Apple launched two iPhone models simultaneously.
 
The gold-colored version of the 5S, which also comes in silver and gray, was sold out as of Friday and will now ship only in October, according to Apple's website. As of Monday, the two other colors were also set to be shipped only in October.
 
“Thanks to all our amazing customers for the fantastic weekend!” said Cook in his second tweet, after he joined Twitter following a visit to Palo Alto Apple store last Friday.
 
Apple also said gross profit margin would come in near the top of a range of between 36 percent to 37 percent, in line with average forecasts for 36.7 percent. The more optimistic margin forecast should allay investor concerns that, at just $100 les than the 5s, the 5c will draw buyers away from the premium gadget.
 
Analysts' average revenue forecast for the quarter stands at $36.1 billion, according to Thomson Reuters I/B/E/S.
 
The company said more than 200 million iOS devices are now running iOS 7 mobile software, rolled out just before the iPhone launch.
 
Apple did not break out separate sales figures for the 5S and 5C. The 5C, which starts at $199 with a contract, offers a touch ID that scans a user's fingerprint to unlock the phone. The 5C starts at $99, comes in five colors.
 
“If Apple could ship so well without even having a larger screen iPhone, which we think it could deliver next year, then Apple is getting over a key hump,” Shebly Seyrafi, an analyst with FBN Securities, said in a note to clients. “We believe that the immediate availability of the phone in China is also a key driver of the strength.”

You May Like

Video Experts Warn World Losing Ebola Fight

Doctors Without Borders says world is losing battle against Ebola, unless wealthy nations dispatch specialized biological disaster response teams More

Video Experts: Rise of Islamic State Significant Development in Jihadism

Many analysts contend the group - which grew out of al-Qaida in Iraq - has been rebuilding for years More

US-Based Hong Kongers Pledge Support for Pro-Democracy Activists

Democracy advocates call on Chinese living abroad to join them in opposing new election rules for their home territory More

This forum has been closed.
Comment Sorting
Comments
     
by: Weng from: Japan
September 25, 2013 8:10 AM
"Apple did not break out separate sales figures for the 5S and 5C. The 5C, which starts at $199 with a contract, offers a touch ID that scans a user's fingerprint to unlock the phone. The 5C starts at $99, comes in five colors."

The 5S, which starts at$199....
The 5C starts at $99...


by: sinclair, from: london
September 23, 2013 3:59 PM
where can i buy one of these new i-phones, 5s or 5c.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Larger Than Life Chinese Lanterns Make Southern California Appearancei
X
Elizabeth Lee
September 02, 2014 8:57 PM
Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Larger Than Life Chinese Lanterns Make Southern California Appearance

Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Experts See Rise of ISIS as Significant Development

The Islamic State’s rise seems sudden. It caught the U.S. by surprise this summer when it captured large portions of northern Iraq and spread its wings in neighboring Syria. But many analysts contend that the group - which grew out of al-Qaida in Iraq - has been rebuilding for years. VOA's Jela de Franceschi takes a closer look at the rise of ISIS and its implications for the Middle East and beyond.
Video

Video Israel Concerned Over Syrian Rebels in Golan

Israeli officials are following with concern the recent fighting between Syrian rebels and government forces near the contested Golan Heights. Forty-four U.N. peacekeepers from Fiji have been seized by Syrian Islamist rebels and the clashes occasionally have spilled into Israel. VOA’s Scott Bobb reports from Jerusalem.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.