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iPhone 5C opening sales may be lower than Apple expected

Stocks flew up in Apple’s favor when they announced a record amount of iPhone opening week sales, with nine million iPhone 5S and 5C units shipped in the first three days.

Apple did not disclose the split of how many iPhone 5S to iPhone 5C units were sold and we believe this may be due to the cheaper plastic iPhone not doing as well in stores, putting questions on Apple’s two iPhone strategy.

According to KGI Securities analyst Mingchi Kuo, Apple may have sold 11.4 million iPhone 5C units this quarter, quite a lot lower than the 17 million projected at the start. This means the iPhone 5S took the lion share of the 34 million iPhone sales this quarter.

There are a few reasons the iPhone 5S has sold 23 million and the iPhone 5C only sold 11, the major reason is the price, many expected the iPhone 5C to be significantly cheaper than the normal iPhone, but it was only $100 cheaper on contract and still a high-price off contract.

Other reasons could be the majority of iPhone buyers having enough disposable income to pay for the iPhone 5S and having no reason to grab the cheaper version. Apple’s biggest markets are the US and places with higher average wages, people able to get the newest phone.

It looks like the iPad Mini had a lot more success than the iPhone 5C. Apple could have replicated the idea with the smartphone, making a similar design with worse internals – this may have worked even better than the plastic iPhone 5C.

Either way, Apple is going to stick to this model for the rest of this year and next year we may see a larger iPhone 6, smaller four inch iPhone 6 Mini and the iPhone 6C.

Apple iPhone 5S outselling the iPhone 5C by significant amount

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Apple may have big records to show for the two new iPhone launches this past week, but the company has not revealed anything about how well each iPhone is doing individually, leading to speculation the iPhone 5C may be trailing behind.

Apple announced it had sold nine million iPhones in three days, destroying the five million three day record set last year with the iPhone 5. It looks like the iPhone 5S has accounted for about six million of those three days sales.

According to a new report from Localytics, the iPhone 5S may be outselling the iPhone 5C at a rate of 3.1, this has reduced this week to around 2.9, but this is still about three iPhone 5S sales for every iPhone 5C sale.

They also posted some interesting information about distribution of iPhones in the US and what carriers are selling the most iPhones. Even though the information is not really that surprising, it does give us some insight into iPhone sales and distribution.

As expected, New York tops the list as the city with the most iPhone sales, with Los Angeles and San Francisco behind in second and third respectively. Comparing the list with the most populated cities in the US is interesting, to see what big cities didn’t grab the new iPhones.

On the carrier side, it looks like AT&T and Verizon Wireless grab the big lump of customers buying both the iPhone 5S and iPhone 5C. Apple offered no exclusive color to one carrier, so it is level playing ground apart from the big differences in LTE support.

It looks like AT&T has a slight edge on Verizon Wireless when it comes to sales of both the iPhone 5S and iPhone 5C, with Sprint just scraping past T-Mobile for third place in sales, way behind the two big carriers.

One odd figure is sales on each carrier of the iPhone 5S vs iPhone 5C, with AT&T and Verizon Wireless both at 80/20 percent iPhone 5S to iPhone 5C, but Sprint at about 55/45 percent and T-Mobile at 65/35 percent.

This could show Sprint and T-Mobile have better grasp of Apple’s iPhone 5C market, even though AT&T and Verizon Wireless have more sales overall on the cheaper iPhone.

Apple passes previous record with 9 million iPhone sales in three days

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Apple has passed its previous iPhone sales record, with nine million sales in the first three days. This has surpassed early estimates from analysts, pegging the sales around the same as the iPhone 5, at five million.

This comes at a high end of the estimates and has shown the continued support by millions for the new iPhones. Apple decided not to disclose the difference in models, giving no indication on if the iPhone 5C has been successful in developing countries.

Demand for the iPhone 5S has crippled Apple’s early supply, especially with the gold model selling out almost everywhere instantly. The space grey model seems to be the least wanted model, with units still available in some stores.

Apple has announced to investors the gross margin is expected to come around the higher end of their predicted range this quarter, at 37% with quarter revenue of $34 – 37 billion dollars. This could be improved as more embrace the iPhone 5C, the cheaper smartphone.

Alongside this high-margin of sales, Apple has also announced over 200 million iOS7 downloads already. This is just under one third of all iOS devices and only half of them may be compatible with the new update, available for iPhone 4 and later, iPad 2 and later, iPad Mini and fifth generation iPod Touch.

On the software side, Apple has said iTunes Radio has been very popular with early users, with over 11 million unique listeners in the first few days. Considering the music streaming platform is free, we can see why so many people are digging it.

This is a big push for Apple, with a stock increase of 6% a few hours after the announcement. With some analysts and predictions saying this would be the end of Apple’s big streak of success, it has hit hard that iPhones are still the most valued smartphone.

The question is has Tim Cook and others done enough to keep investors happy for the next few months. The sales may look strong at the moment, but can sales in China and other Asian countries show Apple’s worldwide appeal against Android.

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