This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Why You Still Can't Get an iPhone 5 (Update 1)

Updated from November 7 to include updated ship time dates per Apple's Web site in the fourth paragraph.

NEW YORK ( TheStreet) -- Despite pundits initially saying Apple's (AAPL - Get Report) iPhone 5 was a step back from previous handsets, it's still extremely difficult to get one. Demand is enormous, and Apple's supplier, Foxconn Technology, is reportedly having problems keeping up with the demand.

In quotes captured by Reuters, Foxconn Chairman Terry Gou discussed the difficulties of meeting the incredible demand for the iPhone 5. "It's not easy to make the iPhones. We are falling short of meeting the huge demand," he told reporters.

A look at Apple's Website confirms Gou's comments, as all three models (16 GB, 32 GB, 64 GB) are back-ordered 3 to 4 weeks at the major iPhone carriers; AT&T (T - Get Report), Verizon (VZ - Get Report) and Sprint (S).

(Update: Apple's Web site has shown an improvement in iPhone 5 ship dates, as back orders have improved. They've moved from 3 to 4 weeks to 2 to 3 weeks.)

Apple announced that the iPhone 5 had the fastest selling launch of any phone in history, selling 5 million of the devices during its first weekend. That number disappointed Wall Street analysts and media alike (including myself), as many were expecting between 6 million to 8 million phones sold in its debut weekend.

With supplies continuing to be affected by component constraints, there were concerns that Apple would miss Wall Street iPhone estimates in its most recent fiscal quarter. Apple sold 26.9 million iPhones in its fiscal fourth-quarter, as the tech giant missed earnings estimates. Apple earned $8.67 per share on $36 billion in revenue.

Apple is clearly betting big (and rightfully so) on the iPhone 5's popularity, as it projects this holiday season will be its first $50 billion-plus revenue quarter. CFO Peter Oppenheimer expects 80% of Apple's revenue in the holiday quarter to come from new products launched in the past few weeks, most notably the iPhone 5.

The iPhone 5, despite not having every bell and whistle that fan-boys, bloggers, and Wall Street analysts wanted, is still selling faster than any phone Apple or anyone else has ever made.

Just try getting your hands on one.

Interested in more on Apple? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>Contact by Email.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.75 -0.47%
S $5.16 -1.60%
T $34.18 -0.68%
VZ $49.02 -1.10%
FB $80.05 0.57%

Markets

DOW 18,048.67 -154.70 -0.85%
S&P 500 2,091.66 -16.12 -0.76%
NASDAQ 4,945.8970 -34.0040 -0.68%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs