Although it was reported that iPhone 5 has been the top selling mobile phone at the three largest US carriers, Apple’s legacy iPhone 4 and iPhone 4S have also been strong performers during the holiday shopping season.
Strong iPhone 5, iPhone 4S and iPhone 4 Sales
In a channel check conducted by Canaccord Genuity, Michael Walkley revealed that sales of iPhone 5 have been “very strong” at AT&T, Verizon and Sprint. Additionally, international sales of Apple’s latest handset have also been positive.
However, Walkley also found out that iPhone 4 and iPhone 4S sales have also been strong. To be specific, the iPhone 4—which is available for free with a two-year contract—was sold out at many stores.
Stabilizing Supplies for iPhone 5
Aside from strong sales of Apple handsets, it was also reported that the company is catching up with the demand for iPhone 5. There were claims that the handset has greatly improved, resolving earlier constraint issues.
The company was also able to meet demand as they are set launch their latest handset in over 50 new countries in the coming weeks. This includes Brazil, China, Russia, South Korea and Taiwan. In relation to this, it was said that all major Taiwanese carriers would start accepting pre-orders of the iPhone 5 a week prior to its release.
Apple’s international expansion of their latest handset comes as the company has started to catch up with demands in the US, where the device was launched last September. It was also reported that they have started selling the handset’s unlocked version last week through its online store in the US.
By the end of 2012, it is expected that Apple would have launched the iPhone 5 in 100 countries with 240 carriers. Considering the strong performance of iPhone 4 and iPhone 4S, Walkley believes that this is only the start of what he believes a “strong multi-year product cycle.”
With the launches set to take place during the holiday quarter, Walkley deems that Apple will be able to sell a total of 47.5 million iPhone units within the three-month frame. That would tantamount to a 77 percent unit increase in iPhone sales.
On the other hand, Canaccord Genuity reiterated its “buy” recommendation for AAPL stock, with a price target of $800. They also believe that strong iPhone sales will help the company achieve gross margins of 38.7 percent during the December quarter.