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Monday, 24 September 2012 - Apple sells out iPhone 5, investors worry about supply |
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See the best of Reuters photography.  See more | Photo caption  Communism school The place where Mao Zedong's career as a revolutionary began is home to China's leadership academy.  Slideshow  Endeavour's final voyage The space shuttle takes its final voyage - to Los Angeles.  Slideshow  Apple sells out iPhone 5, investors worry about supply Tweet Share this Email Print Related News Apple iPhone 5 fever rages despite grumbling over maps Fri, Sep 21 2012 Grumbling over maps fails to dampen Apple iPhone 5 fever Fri, Sep 21 2012 Apple's iPhone 5 uses chips from Qualcomm, Avago, Skyworks Fri, Sep 21 2012 REFILE-WRAPUP 1-Apple still draws crowds in Asia with new iPhone 5 Fri, Sep 21 2012 Samsung to add iPhone 5 to U.S. lawsuits vs Apple Thu, Sep 20 2012 Analysis & Opinion Why I won’t be getting an iPhone 5 Why Apple is settling EC’s e-books antitrust case – but not DOJ’s Related Topics Tech » Media » An Apple employee distributes iPhone 5 shortly after the device went on sale in San Francisco, California, September 21, 2012. Credit: Reuters/Noah Berger Mon Sep 24, 2012 10:58am EDT (Reuters) - Apple Inc sold out of its latest smartphone, with more than 5 million iPhone 5s sold in the three days since it hit stores, the company said on Monday. While sales were solid, analysts were concerned that Apple was unable to produce the new phone fast enough to meet demand. The early total for the iPhone 5 topped sales of the iPhone 4S, which sold more than 4 million units in its first weekend after Apple introduced it in October 2011. Expectations for new Apple products are so high that Wall Street appeared not to be wowed by the latest numbers. Investors sent shares of the stock down 1.4 percent at $690.14 in mid-morning trade. "It appears investors were disappointed with the slowdown in growth in the first weekend," said BTIG analyst Walter Piecyk. Apple said while the majority of iPhone 5 pre-orders have been shipped to customers, many were scheduled to go out in October. The world's most valuable technology company is being closely watched for any supplier problems that may slow down the smartphone production. "We believe that sales could have potentially been much higher if not for supply constraints," William Power, an analyst with Baird Equity Research, wrote in a note. He forecast Apple selling 8 million to 10 million units in the fiscal fourth quarter ending in September. One of Apple's key suppliers for screens, Sharp Corp, is struggling with high costs and scrambling to raise funds to pay debt. Taiwan's Foxconn Technology Group, which assembles iPhones, closed a plant in China on Monday after about 2,000 workers were involved in a brawl in a company dormitory. It was not clear how long the shutdown would last. Additionally, Apple is facing stiff competition from smartphones that run on Google Inc's Android software, which has become the most-used mobile operating system in the world. Apple's key supplier as well as rival, Samsung Electronics Co Ltd, has taken the lead in smartphone sales. The iPhone 5 has been one of Apple's most aggressive international rollouts to date. The phone will be available 31 countries on September 28 and in more than 100 countries by the end of the year. "Expectations for Apple are always white hot," said Colin Gillis, a research analyst with BGC. "It's not just enough for them to break records but to smash them." Apple signaled last week that pre-orders outstripped initial supply and that many phones would not be available until October. The iPhone is Apple's highest-margin product and accounts for half of its annual revenues. On Friday, fans lined up at stores in cities around the world to get their hands on the new phone, which is thinner and lighter and has a bigger screen. (Reporting By Jennifer Saba and Sinead Carew; Editing by Gerald E. McCormick, Lisa Von Ahn and Jeffrey Benkoe) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) randburg100 wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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