News / Economy

Apple Polishes Forecast After Selling 9 mln New iPhones

First customers of the Apple store in Oberhausen
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

Bleak China Economic Outlook Rattles Markets

Several key European stock indexes were down up to three percent, while US market indexes were off around 2.5 percent in afternoon trading More

DRC Tries Mega-Farms to Feed Population

Park at Boukanga Lonzo currently has 5,000 hectares under cultivation, crops stretching as far as eye can see, and is start of ambitious large-scale agriculture plan More

Video War, Drought Threaten Iraq's Marshlands

Areas are spawning ground for Gulf fisheries, a resting place for migrating wildfowl, source of livelihood for fishermen and herders who have called the marshes home for generations 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.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs

World Currencies

EUR
USD
0.8916
JPY
USD
121.32
GBP
USD
0.6487
CAD
USD
1.3252
INR
USD
66.401

Rates may not be current.