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iPhone 5 Sales Increase Due to Improved Supply

By - Source: ValueWalk | B 21 comments

Smartphone set to be released in China this month, alongside more than 50 other countries.

With supply for Apple's iPhone 5 "dramatically improved," the smartphone is selling well in a variety of markets around the globe. Analysts at investment bank Canaccord Genuity said it's found "very strong sales" of the iPhone 5 at AT&T, Verizon and Sprint, in addition to international markets.

With the iPhone 5 set to be available in 100 countries on 240 carriers by year's end (which includes one of Apple's most valuable markets in the form of China), Canaccord has increased its estimates for iPhone sales during the December quarter.

The firm now expects Apple to sell 47.5 million iPhones in the current quarter, representing an increase from its prior forecast of 45 million. It lowered its estimate, however, for the March quarter; Canaccord sees the iPhone selling 46 million units instead of 47.5 million.

"Bolstered by the iPhone 5, we believe Apple's industry-leading software ecosystem and integrated hardware experience will lead to a strong multi-year product cycle," the company said.

Canaccord also predicts strong demand for the iPhone 4/4S, with the same applying for the iPad lineup: "Our checks indicated strong sales of legacy iPhone 4/4S models, with the iPhone 4 sold out at many stores and strong Black Friday iPad and iPad mini sales".

The firm reiterated its 'Buy' rating on Apple with a share price target of $800 during December, noting, "We believe Apple’s industry-leading software ecosystem with over 200M devices already on iOS 6 and its leading hardware expertise will lead to a strong multi-year product cycle for its key products. We believe Apple is well positioned for very strong F2013/14 sales and earnings growth driven by new product introductions, including the recently launched iPhone 5, iPad Mini, recently refreshed iPad, MacBook, and iMac lineup."

Apple initially experienced well-documented problems with its supply chain, subsequently leading to a decrease in sales due to lack of meeting consumer demand. Online waiting times increased to several weeks, while the majority of stores didn't have the device in stock. In recent days, though, Apple has managed to obtain more stock of the iPhone 5 ahead of the crucial Christmas shopping period. Online ship-by dates, meanwhile, improved to become one week.

Foxconn, Apple's main supplier, had previously stated that the smartphone is the the most difficult device it's ever assembled. It also stressed that it's unable to keep up with production demand due to the handset's complexity.

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Top Comments
  • 13 Hide
    nodeffect , December 4, 2012 5:06 AM
    Welcome to the new site.... Zakshardware.com, Lastest Apple news every day, every hour!!!
  • 11 Hide
    fuzzion , December 4, 2012 5:47 AM
    THere ARE 5 news topics on Apple in the first page alone!!! Whats going on with this site?? Sigh, may be forced to go to anandtech soon.
  • 10 Hide
    kracker , December 4, 2012 4:34 AM
    Zak is happy......................................Is that good or no? Hmm.
Other Comments
  • -9 Hide
    reprotected , December 4, 2012 4:32 AM
    Finally! Some good news of the day.
  • 10 Hide
    kracker , December 4, 2012 4:34 AM
    Zak is happy......................................Is that good or no? Hmm.
  • -2 Hide
    wildkitten , December 4, 2012 4:55 AM
    krackerZak is happy......................................Is that good or no? Hmm.

    Exactly how do you figure? All he is is the Apple beat writer and writes news reports that show Apple in a positive and negative light.

    Nothing about his writing leads one to know how he personally feels. All those who hate Apple merely are immature enough to extend that hate to the person who's job it is to cover them.
  • -8 Hide
    acerace , December 4, 2012 5:02 AM
    wildkittenExactly how do you figure? All he is is the Apple beat writer and writes news reports that show Apple in a positive and negative light.Nothing about his writing leads one to know how he personally feels. All those who hate Apple merely are immature enough to extend that hate to the person who's job it is to cover them.


    Thos people are stupid, retarded, moron, beech. Don't bother argue with them.
  • 13 Hide
    nodeffect , December 4, 2012 5:06 AM
    Welcome to the new site.... Zakshardware.com, Lastest Apple news every day, every hour!!!
  • 4 Hide
    silky salamandr , December 4, 2012 5:10 AM
    Zak with the Marcus Yam starter kit.
  • 1 Hide
    excella1221 , December 4, 2012 5:24 AM
    Quote:
    Exactly how do you figure? All he is is the Apple beat writer and writes news reports that show Apple in a positive and negative light.

    Nothing about his writing leads one to know how he personally feels. All those who hate Apple merely are immature enough to extend that hate to the person who's job it is to cover them.

    +1 to this.

    Zak makes articles about Apple, that's a fact - but they're not positive ALL THE TIME. I can understand all the hate for Apple, but not for the person writing about it. I don't know if he's assigned to it or it's his job, or he simply wants to cover everything about the company but christ's sake give him a break.
  • 5 Hide
    memadmax , December 4, 2012 5:35 AM
    Whats funny is Apple is stuck with one supplier... resulting in one company acting as a "throttle"...

    Whereas the other platforms can go as they please... they will win eventually....
  • 11 Hide
    fuzzion , December 4, 2012 5:47 AM
    THere ARE 5 news topics on Apple in the first page alone!!! Whats going on with this site?? Sigh, may be forced to go to anandtech soon.
  • 8 Hide
    dthx , December 4, 2012 7:08 AM
    Zak, you never talk to us. Is your company actually forcing you to talk exclusively about Apple or do you have some freedom in the choice of your subjects ?
  • 3 Hide
    Gundam288 , December 4, 2012 7:18 AM
    I'm seeing some people that I told to say away from the iPhone 5 are already getting it. I think what this really amounts to is older iPhone users just needed an upgrade while trying to stay in their ecosystem because they don't want to leave and lose their stuff they have bought over the years.


    Also, Zak, can you PLEASE cool down on the Apple news!?!??!

    Apple's stock slightly went up by +0.91‎ (0.16%‎) yesterday and I wouldn't be shocked to find that it might be in part to all the Apple articiles that were wrote by you! Just sell your stock in Apple and be done with it already!
  • -2 Hide
    nodeffect , December 4, 2012 7:40 AM
    excella1221+1 to this.Zak makes articles about Apple, that's a fact - but they're not positive ALL THE TIME. I can understand all the hate for Apple, but not for the person writing about it. I don't know if he's assigned to it or it's his job, or he simply wants to cover everything about the company but christ's sake give him a break.


    But christ's sake, give us a break and we will give him too....
  • 5 Hide
    vaughn2k , December 4, 2012 8:15 AM
    Zak, get a break, let us have some REAL news.This is not Apple site.
    This is TOM's Hardware.
  • 7 Hide
    -Jackson , December 4, 2012 8:30 AM
    I'd hate to be another person complaining about this site; I've loved this site for it's news since I joined in February earlier this year, but seriously, what the hell has happened to all the NEWS??
    As of late, articles seem to be more and more irrelevant and a lot of them well, frankly look half-baked.
    Are most of the writers on holidays?
  • 1 Hide
    chibiwings , December 4, 2012 10:45 AM
    i've been waiting for some new Harware parts benchies and comparison on every vendor.. all articles i see is about mobile phone and Apple.. are they imitating GSM arena?
  • 3 Hide
    wemakeourfuture , December 4, 2012 11:12 AM
    memadmaxWhats funny is Apple is stuck with one supplier... resulting in one company acting as a "throttle"...Whereas the other platforms can go as they please... they will win eventually....


    I do agree with this. It's 1980's home computing repeating itself.
    It was Microsoft and its licensing of Windows that eventually took over even though they we're not as innovative. Same is going to be true with Google and Android if they continue with their current licensing. This will eventually yield Apple to have 10% of the smartphone and tablet space.

    For Android it will be like with PCs the 90% market share will be split among 10 or so manufacturers.
    As Apple as a computer company is just as big as another PC maker it will be as big as any Android manufacturer.

    Apple will still be there, just it's stock will come down at least 50% in the years until the market matures and it settles with its 10%
  • 0 Hide
    Anonymous , December 4, 2012 2:09 PM
    You are approaching it from the wrong angle. Microsoft used to give away it's operating system (easy to pirate), hence why all those little shops that made computers when you didn't have to buy software. Now that is no longer it is more of a level playing field. Now Google is giving away it's software, but the scale of sales are so much more massive, the software isn't so large a factor.

    One could compare this to Betamax and VHS, but the Betamax (a better device) was priced to about twice the price until near the end when VHS was 90% of the market and Betamax couldn't recover because rental stores all had VHS. The current iPhones are a little above or the same as the top line others, there is little price difference. Apple is still good here, I think the iPhone is well positioned. The licensing is a factor as any can be made anywhere for cheap components, while the Betamax was made in Japan, but with today's methods Apple outsources and is the same method everyone else uses. No advantage to anyone.

    The only advantage here is Google developing and giving away the operating system to keep makers weak and keep options open for their own company (good long term thinking).

    Long term - 5 years from now. Phones will be powerful enough and "smart" enough that it will do everything one wants for a commoditized price. The operating systems and components will not matter as much. Right now we have large jumps in improvement that will slow down. The established players will fight it out and the price will go down to $250-400 instead of $400-700.

    Can Apple sort itself out for that time? They have the cash to bleed. Management stability so shouldn't have the implosion that happened at Nokia. Nothing is guaranteed but the company is as strong as anyone else right now.
  • -3 Hide
    busuan , December 4, 2012 3:59 PM
    nodeffectWelcome to the new site.... Zakshardware.com, Lastest Apple news every day, every hour!!!

    The very fact that so many hate/rage/flame comments about Tom's covering on Apple products demonstrate one cannot ignore this elephant in the room, regardless how one feels about Apple.

    A probable remedy to Apple allergy: Apple's closed-system philosophy tears away your born rights of manipulating, mod'ing, improving and personalizing tech gadgets. But that's OK. It's Apple's loss to have denied great minds and hands such as yours. Hatred will destroy your sanity only, not Apple. Stay alive to be the last ones to laugh.
  • 0 Hide
    wildkitten , December 4, 2012 4:04 PM
    vaughn2kZak, get a break, let us have some REAL news.This is not Apple site.This is TOM's Hardware.

    Exactly, it is Tom's Hardware, a technology site. Apple is a tech company and a leading one at that. Whether for better or worse, a lot of the products they make are extemely popular. Any publication or site that claims to cover all of the tech world is going to devote coverage to ALL tech sites, not just ignore one particular company because a niche of the reader base hates that company.
  • 0 Hide
    Kami3k , December 4, 2012 6:10 PM
    wildkittenExactly, it is Tom's Hardware, a technology site. Apple is a tech company and a leading one at that. Whether for better or worse, a lot of the products they make are extemely popular. Any publication or site that claims to cover all of the tech world is going to devote coverage to ALL tech sites, not just ignore one particular company because a niche of the reader base hates that company.


    Worldwide Apple is not as popular.

    Based on your logic there should be articles on here about the S3 on AT&T getting Jelly Bean finally and Verizon still not having it.

    I could go on but I've realized long ago cultists will be cultists.
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