Posted by Sam
Churchill on September 24th, 2012
Apple today announced it has
sold over five million iPhone 5s, just three days after its
launch on September 21, and more than 100 million iOS devices have been updated
with iOS 6. The
iPhone 5 is available in the US, Australia, Canada, France,
Germany, Hong Kong, Japan, Singapore and the UK, and will be available in 22
more countries on September 28 and more than 100 countries by the end of the
year.
iPhone 5 is available in the US for $199 (US) for the 16GB model with a 2
year contract from AT&T, Verizon and Sprint, which pay Apple $600 for the
device.
That number blasted past sales of the iPhone 4s, which Apple introduced it in
October 2011. It sold more than 4 million units in its first weekend.
According to the latest study from ComScore, AT&T leads in
pre-orders with about 68% of total online sales in the first three days. This
records the best order ever received by AT&T for the iPhones. The other two
major rivals – Verizon and Sprint – accounted for just 24% and 8% share of
iPhone 5 sales, respectively.
When compared to the 68% share of iPhone 5 sales, AT&T received merely
48% of pre-orders for iPhone 4S in the first three days and was followed by 35%
for Verizon and 17% for Sprint. This suggests that though AT&T is behind
Verizon in deploying 4G LTE services needed for iPhone 5, the existing
customers, who are eligible for upgrades, are boosting demand for the new
product.
The company now has to pay $100 extra per phone to Apple, when compared to
previous iPhone 4S, in the form of subsidy. This subsidy of $400 per iPhone 5
will dilute the company’s earnings for the next several quarters, but the
revenue expected from a 2-year data contract should reap big profits, longer
term.
The increase in percent of AT&T sales surprised some observers, who
believed that Verizon’s LTE lead would compel many to jump ship.
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