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

[AidenShaw]

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.

No, it means that some unknown percentage of the 9 million phones are in people's hands.

The rest are sitting in boxes at carrier stores, retail store, and any other outlet that ordered more 5Cs than they could sell.

You quoted Apple's 10-K filing, but didn't understand that "the customer" also refers to the carriers and retail stores - ergo Apple's comment "For most of the Company’s product sales, these criteria are met at the time the product is shipped" specifically means that it is "sold" when it leaves the warehouse for the channel.

 

[sofila]

So much for "Apple is Doomed" or "Its the same phone as last year"


Go Apple!

or the same buyers as last year

 

[OTACORB]

Apple has always been slow to move in some areas. Take the display.... Even if they are convinced they need to move to a bigger one, they won't do it till iPhone 6. So, all those complaining about a bigger screen, its not happening until they deem it something they need to do. Bottom line is if a bigger screen is required, then you may need to jump ship. Chances are once they do release it, you'll be back! I've met very few that have jumped ship that didn't come back. Customization is great for Android, but other than that, I see no reason to jump ship and customization is something I play with for about a week or two and then rarely touch again.

I am one that does want a bigger screen, but not enough to give up a stable OS with hardware that enhances the user experience vs the competition. I think it also matter how much you've bought into the Apple ecosystem as well. I have head units in my car, boomboxes, clock radios, Apple TV's iPad which all take advantage of the ecosystem.

Anyway... I wouldn't have expected those sales figures to be any different. I am amazed though at how many would love for Apple to fail in favor of Samsung.

 

[Mark Booth]

If Apple continues to receive an average of $600 per iPhone (between the selling price and carrier subsidy)....

Mark

 

[BaldiMac]

If Apple continues to receive an average of $600 per iPhone (between the selling price and carrier subsidy)....

Image




Mark

Pfft. Blackberry almost made that much in one day.

 

[ladeer]

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?

Thankfully GAAP already defined this for you. A company can't claim sales of a product until the order has been shipped.

 

[OTACORB]

Pfft. Blackberry almost made that much in one day.

$600 you are right they almost did! LOL

 

[foodog]

Even if we disregard any addiction, if an app you NEED is only in iOS, you HAVE to buy a new iPhone when the old one doesn't cut it anymore.

This is the problem people have with money too, that can't differentiate the differences between needs and wants. Easily the highest ranking cause of financial troubles. Even if you choose to believe differently words have meanings.

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Something that you need for work is supporting life.

Something that you need for moral reasons is also not a want.

Where you work, what you do for work is a choice.... I cannot choose to not eat food and live for very long. I cannot choose to not drink fluids and live very long. I can choose to leave my job and do something else.

I notice I keep providing specifics of what needs are, and you keep giving non-specific needed "apps"

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

I think it depends... I don't know on what it depends though. The 5s I ordered was charged the second I hit submit; the 5c hasn't been charged yet... I'm hoping its free.

 

[50548]

And AGAIN I was right - the 5S is an under-produced success, while the 5C is a FLOP, particularly since these stats were NOT published by Apple nor did they consider, in their "best ever" statement, that those sales concerned many more countries than on other occasions.

Now who is going to disagree with me when I state that Cook USED to be a good COO until he became a bad CEO?

You're welcome.

 

[Rogifan]

And AGAIN I was right - the 5S is an under-produced success, while the 5C is a FLOP, particularly since these stats were NOT published by Apple nor did they consider, in their "best ever" statement, that those sales concerned many more countries than on other occasions.

Now who is going to disagree with me when I state that Cook USED to be a good COO until he became a bad CEO?

You're welcome.

Ok ill bite. When has Apple ever broken out sales by model. NEVER. Was the iPad mini a FLOP because Apple didn't break out sales between it and the 4th gen iPad? And how is 11 launch countries "many more" than 9?

 

[Kendo]

And AGAIN I was right - the 5S is an under-produced success, while the 5C is a FLOP, particularly since these stats were NOT published by Apple nor did they consider, in their "best ever" statement, that those sales concerned many more countries than on other occasions.

Now who is going to disagree with me when I state that Cook USED to be a good COO until he became a bad CEO?

You're welcome.

You don't know what it takes to be a CEO nor what a CEO's daily activities are or what a CEO's responsibilities should be. I don't know how you can make that judgment and then say you're welcome as if you provided some valuable insight.

A CEO is the top employee of any company in terms of success, smarts, and business sense. They are the most important person in the company (in this case hundreds of thousands). Are you even the top employee in your department? Your floor?

 

[chinesedemo]

5s gold, silver, slate? It's the same phone as last year!!!!? Doesn't anyone notice this? I feel like Im taking crazy pills!??!!

 

[paradox00]

"nearly doubles". You have to take into account China.

5+2 million vs. 9 million

You don't 'have' to take into account China. Their last China launch had unconstrained stock because they timed it well away from the original launch.

It wouldn't be more "fair" to include those unrestrained launch numbers here when the primary reason sales aren't higher are supply constraints. You can never get a true apples to apples comparison between launches, but there's nothing wrong with comparing initial launch numbers against each other. If you want better, more "fair" results wait until next year and add up the total sales over the year.

 

[50548]

Ok ill bite. When has Apple ever broken out sales by model. NEVER. Was the iPad mini a FLOP because Apple didn't break out sales between it and the 4th gen iPad? And how is 11 launch countries "many more" than 9?

Thanks for biting:

1 - When has Apple released more than ONE iPhone line at the same time? NEVER. This is why they have never had any reason to break out sales by model upon launch - now they do, unless they don't want to show that there is a problem out there;

2 - The iPad mini IS a flop as it served only to reduce Apple's healthy margins on the normal iPad;

3 - iPhone 4S: 7 countries - iPhone 5: 9 countries - iPhones 5S and 5C: 11 countries, including tiny China. How is that NOT relevant, particularly considering the thousands of scalpers there?

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You don't know what it takes to be a CEO nor what a CEO's daily activities are or what a CEO's responsibilities should be. I don't know how you can make that judgment and then say you're welcome as if you provided some valuable insight.

A CEO is the top employee of any company in terms of success, smarts, and business sense. They are the most important person in the company (in this case hundreds of thousands). Are you even the top employee in your department? Your floor?

Actually I am, but that is irrelevant to this discussion - Michael Spindler was also a CEO at Apple; need I say more?

 

[BaldiMac]

Thanks for biting:

1 - When has Apple released more than ONE iPhone line at the same time? NEVER. This is why they have never had any reason to break out sales by model upon launch - now they do, unless they don't want to show that there is a problem out there;

Or they don't want to release the product mix for competitive reasons. Much like their policy with their quarterly financial statements.

2 - The iPad mini IS a flop as it served only to reduce Apple's healthy margins on the normal iPad;

A conclusion that you reached without any actual data to back it up.

3 - iPhone 4S: 7 countries - iPhone 5: 9 countries - iPhones 5S and 5C: 11 countries, including tiny China. How is that NOT relevant, particularly considering the thousands of scalpers there?

Because launch weekend numbers have always been constrained by supply and distribution, not demand. Simply adding China would not have changed how many iPhone 5's were sold last year.

 

[50548]

Because launch weekend numbers have always been constrained by supply and distribution, not demand. Simply adding China would not have changed how many iPhone 5's were sold last year.

If what you said above were true, there would be no reason for Apple to announce "best ever" launch weekends, since demand would always be inelastic when compared with supply limitations.

Apple has sold a lot of what it does NOT have - the iPhone 5S. And this has always been my theory all along (as opposed to those who thought that the 5C would sell like hot cakes); something that Cook, formerly known as the world's best COO, seems to forget now.

 

[elev8d]

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

I'm a kill-joy I know.

Great question, I'd love to see the US market breakout. I visited a local apple store on Friday at 3pm. ATT 5S were sold out, but verizon had about ten left, and sprint/t-mobile had plenty left. I'm an ATT customer of course

My iPhone4 is running iOS 7 alright though, so I'm not completely convinced on buying a new phone yet.

 

[BaldiMac]

If what you said above were true, there would be no reason for Apple to announce "best ever" launch weekends, since demand would always be inelastic when compared with supply limitations.

That does not follow.

Apple has sold a lot of what it does NOT have - the iPhone 5S. And this has always been my theory all along (as opposed to those who thought that the 5C would sell like hot cakes); something that Cook, formerly known as the world's best COO, seems to forget now.

Your awfully proud of your prediction that Apple would sell out of its top of the line iPhone on launch weekend. That is what usually happens.

 

[OC40]

I ordered two iPhone 5S' in silver (one 16gb and one 32gb) at 5:01am PST on Friday. Estimated ship date was 10/7. Our phones shipped today and will be here on Wednesday by 430pm.

Carry on.

 

[the8thark]

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

Apple quarterly conference calls. I've listened to enough of them, mostly boring, but a few of them, various Apple staff explained this fact of what they meant by sales figures.

 

[ani4ani]

Thankfully GAAP already defined this for you. A company can't claim sales of a product until the order has been shipped.

Ok, you need to learn about GAAP. This may well be how Apple recognises sales (revenue), but GAAP does not rely solely on delivery as a trigger for revenue, although it can be if the transaction is short.

 

[APhillyApple]

Some of the hate in this thread is super funny. Its so hilarious that people are so butthurt about Apple doing what they do, produce an awesome gadget that people love and it sells like crack.

 

[macs4nw]

Apple will be alive & kicking this Christmas season... AGAIN!!!

With the coming iPads, MBPs, MacPros, perhaps iMac and Mini refreshes, and possibly displays and tv, you betcha! Less constrained supply than last year would help for the Jan earnings call.

But it more than likely won't be reflected in the price of AAPL shares.

 

[Digital Dude]

While I do like iOS7 running on my 4S I have noticed a significant draw on the battery even without running Bluetooth. I would say it's on the order of about 50% faster drain. Either way, I feel the benefits of the operating system may be worth it but to make sure I went ahead and ordered the 5S 'Gold'. Not sure that I can really justify the new phone but still.

BTW, AT&T has a fairly new plan called 'premium upgrade' which in effect allows me to upgrade annually for the new models as they come out. You don't pay anything up front other than a small upgrade fee but I can deal with that. The costs over time is a bit more, but who wants to wait two years to replace an iPhone.

 

[tkhan456]

A little disingenuous given the multiple country launch and two new phones vs one.