iPhone Has Legs After 9M Unit Debut: Munster

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Sept. 23 (Bloomberg) -- Gene Munster, managing director & senior research analyst at Piper Jaffray examines the debut weekend sales strength of Apple’s iPhone 5C and 5S, which topped analyst estimates with 9 million units sold. He speaks on Bloomberg Television’s “Bloomberg West.”

Number, i fell out of my chair.

To put that into context -- we had the next vexing 5-6,000,000 units.

That 9 million included channel fill of the 5c and based on conversations we backed into what that was and there is roughly 3.5 million units in that are the real number was probably closer to 5.5 million.

That was certainly better than the feedback we had heard from the high side.

-- buy side.

The important part is even when you back out the channel inventory, it was up from the iphone 4 and 5 from one year ago.

What do you mean by channel inventory?

They had not included that in previous numbers.

When they launched a phone, they did not have any supplies other was no channel fill.

There are many places where you can buy an iphone and those places need to buy inventory.

Apple recognizes the revenue when an at&t store buys 10 phones.

They may not sell those phones but they are in their inventory but apple recognizes that rapid that -- that revenue is that is channel fill.

That is different than sell through.

It was not an apples to apples comparison versus last year but when you back that out, it is still better.

There was the benefit of china, which you mentioned but there was the headwind that they were not doing online pre-orders for the 5s so there were gives and takes.

In general, it was a solid start to the iphone 5s. it sold out in many places.

Why is that?

Why cannot apple make enough to meet demand or do they purposely not put enough out there to create a hard to get product.

We have asked apple that many times if they purposely do that to create this hot product.

Their response has always been that when someone is in the mood to buy something, they want to have it there to buy and i tend to believe that.

They want to get the money whenever they can get it.

The reality is that building this many phones at scale this quickly is a hard thing to do.

To do it tonight profitable, efficient way -- there is a lot of gives and takes there.

In this case, the reason why the supply issues are more related to the fingerprint scanner and the fact they are adding the kinks worked out of that impacts the numbers.

The good news for apple is we called stores throughout the weekend.

There was a healthy demand.

People still were clamoring for the phones even though the stores did not have them.

That is assigned there is probably legs to this story.

It seems the gold iphone is the hardest to get.

Is that because it is in the shortest supply or because it truly is the most popular?

Our believe is it is truly the most popular.

When you come out with a new color, as crazy as that sounds, that ends up being a big deal.

In the past, apple has had issues about colors.

The white iphone was harder for them to produce for some unknown reason but this was probably demand driven.

What color do you want?

I think i have to go old school.

They call it like space grey, the closest thing to black.

That's probably what i will get.

Have you given any more thought to the iphone 5c? it seems to be pretty popular and we know it was as cheap as some people thought it might be.

Do you think it will have trouble in the long run reaching some of the more middle-of-the- road consumers?

Bloomberg has done a great job of kind of pulling back the curtain as far as the apple strategy.

You have written in the past and talked about apple focusing on the high-end.

It sounds like they will stick to that roadmap.

Our belief is that throughout the year, there will be some tweaks to some of the pricing country by crunchy -- country by k-rod -- country by country.

I don't think we can say how that will be.

We believe it will be flexible and apple will not drop it to $300 like we expected but they will tweak that pricing.

I think the jury is still out and the iphone 5s, we estimate they did for million of those.

The iphone 5c, we are expecting

This text has been automatically generated. It may not be 100% accurate.


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