Apple sells 9 million iPhones
But those record-breaking sales won't quiet skeptics.
Apple (AAPL) sold a record nine million iPhones in the weekend debut of the iPhone 5S and 5C models. That was way above the most pessimistic estimates from analysts of five million units, but also blew away optimistic Wall Street estimates of 6.5 to 7.75 million units.
And that has led the company to tell Wall Street it expects total revenue for the quarter (the fourth quarter of Apple’s fiscal year) that ends on Sept. 30 to come in at the high end of its earlier guidance of $34 million to $37 million in revenue. Gross margins, Apple said, will be near the high end of a range of 36% to 37%.The stock closed up 4.97% Monday. (Apple is a member of my Jubak’s Picks portfolio.)
But that hasn’t quieted the skeptics, nor should it. Apple still has to demonstrate it can meet demand for the 5S that led it to sell out in many stores over the weekend, in time to meet the end of the quarter and in a way that doesn’t damp overall sales momentum.
And we still don’t have numbers on sales of the cheaper 5C, that tell us much of anything about how that model will sell against competing Android phones. With the 5C likely to appeal to current Android users, if it appeals to anyone, who have annual or two-year contracts on their existing phones, it will take a while before we know how much market share the 5C can claw back.
The gold 5S has emerged has a big seller, which could hurt Apple’s revenue numbers for the September quarter. AT&T (T) and Verizon (VZ), for example, had said they won’t be able to ship gold iPhones until October. That might well cut into the revenue that Apple can claim for the period.
In other positive news for Apple, the company said users had downloaded the new iOS 7 mobile operating system onto 200 million devices since Sept. 18. That’s twice the number in last year’s operating system upgrade.
Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of Apple as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund’s portfolio.
MSN Money on Twitter and Facebook
It's freaky scary that folks are still so crazy for a phone that they can't wait a few weeks. You have to be a total moron to do that. Waiting in long lines just to say you have the latest phone is just plain stupid. So far, 9 million and counting.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.