Apple’s still got it: New iPhones ring up record sales
Published: Monday, 23 Sep 2013 | 9:24 AM ET
Apple said Monday that sales for its new iPhone had set a record, with consumers snapping up nine million smartphones within the first few days of its launch, prompting the company to hike its revenue guidance.
The tech giant said in a statement that the iPhone 5s and 5c’s sales were accompanied by more than 200 million downloads of the iOS 7 platform, Apple’s new iteration of its operating software.
As a result, Apple said company revenue for the fourth fiscal quarter would be “near the high end” of its previous guidance of $34-$37 billion. Gross margins would also check in near the top of its prior guidance of 36-37 percent.
(Read more: Apple’s device exhaustion?)
The numbers defied some of the market’s low-ball estimates, and suggest the technology giant still has cachet with consumers as it fends off a stiff challenge from Samsung.
Apple fanatics snapped up the new 5c and 5s models in droves, with lines snaking around Apple’s iconic retail stores last week. Some ebullient fans even camped out overnight, in order to be the first to get a hold of the new device.
(Watch: Paid to stand in line)
“The demand for the new iPhones has been incredible, and while we’ve sold out of our initial supply of iPhone 5s, stores continue to receive new iPhone shipments regularly,” Apple CEO Tim Cook said in a statement.
The market’s estimates were off for Apple sales because the tech company combined sales of the 5c and 5s models, Gene Munster, an analyst at Piper Jaffray, told the “Fast Money Halftime Report.”
“The way they announced that number was a little bit different than they typically do. When you back out that channel fill of the 5c, the number was pretty much right in line with about 5.5 million, which is positive because it’s up from 5 million a year ago. But you need to kind of put that 9 million into context and I don’t think the Street was as off as maybe it looks at first blush,” said Munster, who is currently has an ‘overweight’ rating on the stock with a price target of $640 a share.
Apple’s shares, listed on the Nasdaq, rose 3.6 percent in afternoon trading. (What’s the stock doing now? Click here)
Shares in Pandora, the online radio service that faces competition from Apple’s new iTunes Radio, fell more than 10 percent. (What’s the stock doing now? Click here)
Some professional traders are also bullish on Apple’s stock.
To pro traders Stephen Weiss and Jon Najarian, Apple’s sales and shares alike could continue to rise should consumer support for rival BlackBerry wane. Weiss thinks the stock could trade to $550 a share, but will likely remain range-bound until the company produces a “truly new,” innovative product to the marketplace.
Joe Terranova, chief market strategist at Virtus Investment Partners, an asset management firm with more than $25 billion under management, said it all comes down to the technicals for Apple
If the stock is able to push through resistance of $500 a share, he thinks more investors will start a position in the stock, sending shares even higher.
How can we work together? Please contact me if you have any questions in relation to Patents, Copyright, Trade Marks, Intellectual Property or Commercial Law needs.
Sweeny Legal announces its Virtual Lawyer Service Available in Wollongong. Tomorrow’s Lawyer Today. This Service saves you time, it is convenient, and saves on costs. Alternatively I can come and visit your Office and review your needs.
Contact me if you need commercial assistance or if you need e-commerce business tools, commercial agreements, either reviewed, gap analysis or drafting, for example, Commercial and IP Agreements, Business Relationship Agreements or License Agreements.
Please contact Sweeny Legal or Brandsworth Licensing should you require any assistance with any Intellectual Property (IP) rights, Commercial Agreements of any type, or IP Business Strategies.