iPhone 5s and iPhone 5c Sales Top Nine Million in Launch Weekend

[kunai]

This is great news, but if we look at the international launch + the amount of 4Ss along with 5s sold LAST year, the numbers aren't likely to be too different. I think demand for smartphones is plateauing now. We've kind of hit a barrier with regards to what we can put in these devices.

It's now a completely (or very nearly) saturated market. We'll have to wait another 3 years until the next "big thing" comes out. Probably wearables.

 

[melendezest]

Here's what it means to me. A small screen is not that big a deal to iPhone buyers. To the ones that it is a big deal to, they switch to android.

Sounds like we are saying the same thing. It is after all, merely an observation.

The sigh is meant to represent the fact that I just don't like that Apple is forcing that choice on those of us to whom it is a big deal...

 

[mdelvecchio]

Wow Apple sold 9 million iPhones ... Really who cares?
Maybe the people who bought one and are trying to justify that they made a good purchase. Also shareholders.
Is this an indication of how good the phone really is?
No, People are buying into the Apple ecosystem if you have used an iOS device in the past its a PITA to switch to android. The phones were bought on Faith in the Apple Brand. Tech reviews are always positive for new devices.
Apple Builds the best phones?
Apple puts out a an amazing final product but other Companies build the components apple just hires someone to assemble them. They design the best final product.
Apple Vs Others?
The best way to look at this is that both sides are winning because they are able to keep selling us improved devices. They are pushing each other to go past the boundaries of what a smart phone can do. Just be happy that there are people on the other side causing companies to innovate or lose customers to the competition.

uh no, tech reviews are NOT always positive for new devices. Blackberry Playbook?

 

[iGrip]

Surely, if you are going to compare the sales of the 5S and 5C, you should compare it to the last year sales of the 5 AND the 4S (same internal relation as the 5S & 5C have).

Also, how many of that 9 million are 5C's and 5S'?

Also, they also introced their products in new markets, so how are the sales compared if you only look at the US?

You can't just blindly look at that 9M number, doesn't represent the evolution of the sales per specific market.

All good points, and I'm sure that Apple looks closely at each metric you mention.

But the bottom line is that Apple sold a lot of phones and made a lot of money in a short amount of time. There seems to be no doubt that however they did it, they are still doing it well.

 

[applefan10466]

Sounds like we are saying the same thing. It is after all, merely an observation.

The sigh is meant to represent the fact that I just don't like that Apple is forcing that choice on those of us to whom it is a big deal...

Yeah definitely, I noted the bolded "me"in your original post. I was just stating that if Apple knew that millions of their customers were screaming for a bigger screen, they WOULD change it. They would not stay in business if they didn't listen to their customers.

It's a big deal to you, but I'm sure you know you are in the minority when it comes to apple customers.

 

[Nightarchaon]

You honestly believe 50% of users upgrade out of contract?

Off the sample of users in my office, thats about right (a lot of them were posting out their old fives today having sold them on ebay)

 

[therealtycho]

How many 4S's have been sold total? Compare that to 9mil and that would be your answer.

Well.... I think you mean- compare how many 4S's sold SINCE iPhone 5C & 5S came out.. or else that makes NO sense at all. iPhone 4S was at one time a new phone.. the position I'm taking (against your position that TONS of user will stay with a 4S.. unimpressed with the "meh" differences between it & a 5S) is that most users with a two year old phone DO see a new phone as a HUGE improvement.
Counting 4S sales when it was a new phone strengthens my argument, NOT YOURS.

 

[Nightarchaon]

I'm the same cycle too, but I decided to wait for the mid-bump so that I will always have the fastest and best phone of each particular model, which will always be the S model.

Now that's an interesting way of looking at it , i went the other way, id rather have the complete cycle products, and let the wrinkles of the "new" features be ironed out in the S models

 

[olowott]

Well, i am happy its going well for apple and well done.


Please get those phones out of your warehouse ASAP and to the owners - with no scratches

 

[Spacial]

I know it pains you

You have no clue whatsoever ...

 

[Xgm541]

so if you pit every single android maker against only one apple, they'd "win"? that's what you're saying? good lord. no single company is selling as many as apple, one on one, the fair way to fight. yet, apple earns the lions share of profit from ALL those other players. so apple sells more than any other maker, and it earns more than all the other makers combined.

that's the definition of winning.

No you misunderstood what I said. There are a few definitions of winning. You can win on market share, on profit margin, or on pure activations per day. In the activations per day category, android wins.

I think what people fail to realize is that comparing ONE manufacturer/software developer that has a limited product portfolio where people dont really have much choice versus many manufacturers where the choice of devices is limitless - is like comparing apples to oranges.

I wonder how many people i'll upset with this one.

 

[applefan10466]

No you misunderstood what I said. There are a few definitions of winning. You can win on market share, on profit margin, or on pure activations per day. In the activations per day category, android wins.

I think what people fail to realize is that comparing ONE manufacturer/software developer that has a limited product portfolio where people dont really have much choice versus many manufacturers where the choice of devices is limitless - is like comparing apples to oranges.

I wonder how many people i'll upset with this one.

It shouldn't upset anyone because you are correct. The only correct comparison is one manufacturer to one manufacturer. When you compare correctly, Apple is on top by an overwhelming margin.

 

[therealtycho]

Of course you don't have to. But you pay a price for switching. I would loose a great deal of music integration in my house and all of my ap store purchaces? Did not think that was a hard concept to get. For me it would take one hell of a competitor phone to get me to switch for those reasons alone. So you can kindly *****

Lol...
First you agree with me that op was WRONG when they said that people "must" buy an iPhone.. as if Tim took their children hostage.
Then you tell me to s t f u.
Hahaha.... umm, bipolar much??

Also, just an FYI from my kindergarten teacher:
Lose = opposite of win
Loose = opposite of tight

 

[lordofthereef]

I'd be interested in actual 5S versus 5C sales numbers. In my area everything sold out, and 5C came in way, WAYYYYYY higher numbers than did the 5S. We are talking anywhere from 5:1-10:1

 

[TallManNY]

For starters, that 5 million figure last year was for ONE new phone. This years figure is for TWO new phones. Although, there probably is a slight bit of cannibalization from the 5C, I would expect a better comparison would be 5S sales vs. 5 sales on opening weekend. Another thing to point out: China's opening weekend is factored into these numbers for 5S and 5C, while they were not part of the 5's opening weekend. Wasnt there like 2 million iPhone 5's sold opening weekend in China?

Yeah but when 5 launched in China, Apple wasn't supply constrained as other major markets had reached equilibrium between supply and demand. So subtracting 2 million from this weekend's numbers also isn't fair.

The 9 million number is an impressive display mainly of demand, production capacity and logistics. It eviscerates all the claims that Apple's phone is going to be poorly received because not innovative enough. I can't wait for the next earnings release to learn more about Apple's results.

 

[joesegh]

You're contradicting your logic. The 5C should sell worse than the 4S last year in relative terms.

No, that assumes that people who will buy the 5C are looking for premium build. I'd argue that's not what most 5C buyers are going to be looking for. They're looking for a new iPhone, but cheaper. In years past they would have to buy last year's model, which happened to be premium in build quality. If they had to give up that differentiator, I don't think it would have stopped them from purchasing.

Also, the 5C is not a line-up-overnight type device, and I imagine its sales will start to grow as more (at least in the US) as contracts come up for renewal, allowing people to acquire it for $99.

 

[lordofthereef]

Ok they sold 9 million, but how many did they actually build?

Good pont, and something I didn't think of. I wonder if their mid/late october ship dates are reflected in "devices sold" metric. This would make a lot of sense in understanding these numbers.

 

[AidenShaw]

You are wrong. Apple only count sales as sales. Does not matter if they sell them to retail or end users. As if a retailer like a phone carrier has any iPhone dead stock they can't just hand it back to Apple, as they bought them from Apple and have to somehow rid themselves of the excess stock themselves.

When Apple quote sales, they actually quote sales. Unlike some others who only quote shipments.

Link from Apple.com clearly explaining their policy, please.

 

[nikaru]

China being part of launch weekend and not on a 3 month delay def helped

WoW, it launched in Hong Kong, which is not mainland China so to speek. And dont know what helped but there is steel 90% of Europe and all Asia wainting for release date.

 

[flux73]

Didn't they make it available to more countries than ever though?

I'm a kill-joy I know.

And yet, that doesn't stop Samsung fans from crowing about Samsung sales in a lot more countries and with a lot more carriers, including China Mobile. Oh, and they also sell several dozen more models.

9 million phones sold is a lot of phones, no matter how you slice it.

 

[Rogifan]

Good pont, and something I didn't think of. I wonder if their mid/late october ship dates are reflected in "devices sold" metric. This would make a lot of sense in understanding these numbers.

I was under the impression for online sales Apple didn't count something as sold until the consumer's credit card was charged. Does the consumer's card get charged immediately or not until the device is preparing for shipment?

 

[therealtycho]

Off the sample of users in my office, thats about right (a lot of them were posting out their old fives today having sold them on ebay)

"Your office" may not be an accurate sample.. I hashed out the stats real quick.
Of 300 million phone users and assuming 70% response rate, you'd need to query 425 for a 90% accuracy (4% error tolerance).
Jumps to 600 for 95% & 1,037 for 99% though you'd def need a better cross section than all workers in the same industry, that likely have similar pay.

I literally have nothing to back this up, beyond having worked for a Verizon store during the 4S & 5 launch.. but I would guess the "outright buyers" in America are closer to 2% than 50%.

 

[synyster11]

Lol...
First you agree with me that op was WRONG when they said that people "must" buy an iPhone.. as if Tim took their children hostage.
Then you tell me to s t f u.
Hahaha.... umm, bipolar much??

Also, just an FYI from my kindergarten teacher:
Lose = opposite of win
Loose = opposite of tight

My point was you don't have to, but it's gonna suck if you do. Are you 12? Is it really that difficult to understand??? You really don't think people have "bought into" the eco-system? It's not a BAD thing, but it's obviously a reason some people don't switch.

 

[sclawis300]

Its counted as a sale when they sell it.... CC charged.

which is not until it is shipped form my what it sounds like.

 

[BurchK]

I wonder how many phones are actually in hand?

Given that the vast majority probably haven't shipped or even are in Country should they really be counted as sold or rather pre-ordered? Or if they are considered sold, shouldn't they say they were sold between launch and end of October when credit cards are charged and items ship?

Just playing Devils advocate, that is, this is just another twist on the sold v shipped arguments. Shouldn't they announce 9m of combined sales and commitments made? They are sold when they are paid for and shipped, surely?

No Sales is a very specific word in this context. Apple's 10-K defines revenue recognition as follows

The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company retains a portion of the risk of loss on these sales during transit.

This means that their are nine million fan boys or girls (I am one) that have a new IPhone in their hand - I wonder what their backlog is? I would not be surprised if that number is a significant fraction of 9 million delivered units.