Apple said Monday it sold a record 9 million new iPhone 5s and iPhone 5c models during the first weekend the devices went on sale, topping Wall Street expectations and sending the company's shares up nearly 5%.
The stock closed up $23.23 to $490.64 Monday.
Demand for the iPhone 5s exceeded the initial supply, and many online orders are scheduled to be shipped in the coming weeks, the company added.
"The demand for the new iPhones has been incredible, and while we've sold out of our initial supply of iPhone 5s, stores continue to receive new iPhone shipments regularly," said Apple CEO Tim Cook.
Investors were expecting first-weekend sales of between 6 million and 8 million units.
"We had expected about 6 million over the opening weekend and view this as a very strong number," said Brian Marshall, an analyst at ISI Group.
When Apple launched the iPhone 5 last year, it sold 5 million of the devices during the first weekend. This year, the company launched its new iPhones in China at the same time as other major territories for the first time.
Apple said in a regulatory filing that it expects revenue for its fiscal fourth quarter to be near the high end of its previously forecast range of $34 billion to $37 billion. Gross profit margin will likely be near the high end of the previously forecast range of 36% to 37%, it added.
After that update, Scott Kessler, an equity analyst at S&P Capital IQ, raised his Apple earnings estimates for the rest of this fiscal year and the following two fiscal years.
"We see Apple as well positioned for the holiday shopping season," Kessler added.
Apple also said Monday that more than 200 million iOS devices are now running its new iOS 7 mobile operating system, making it the fastest software upgrade in history. The operating system update began rolling out to consumers last week. When Apple launched predecessor iOS 6, about 100 million customers upgraded in the first five days.
Apple also reported Monday that more than 11 million unique listeners have tuned in to iTunes Radio since launch last week. Shares of Pandora Media, a rival Internet radio provider, dipped more than 10% to $24.26.
"Many new features in iOS 7 (e.g., iTunes radio, enhanced Siri/iCloud, new UI, etc.) will help Apple retain ecosystem loyalty," ISI's Marshall said. "We also expect the 5c's lower price point to address a large part of the midtier market."
Marshall had forecast Apple to sell about 50 million iPhones during the company's December fiscal quarter, but he said Monday that this estimate is now "conservative."
The new iPhone models and the new iOS 7 will keep demand strong until Apple releases an iPhone 6 with a larger display in the first half of the company's 2014 fiscal year, Marshall added.
Courtesy: USAtoday
