Apple stocks fall 7% after it releases its third quarter financial report showing that iPhone sales were lower than investors expected. Even though revenue is up 33% at $49.6 billion, iPhone sales are short 1.3 million units than expected in part due to low inventory. iPhone sales make up half of Apple’s revenue. CEO Cook:
Channel was down by 600,000. We sold more units than we thought we would. We always run with just the inventory we thought we need. In this quarter, we were able to end right at the bottom end of our range. Revenue would have been higher if we expanded channel, but that’s not how we think of the business.
Demand for the iPhone 6 boosts earnings to $1.42 a share on revenue of $42.1 billion. That compares to a consensus estimate of analysts surveyed by Thomson Reuters of $1.31 a share and $39.88 billion. Cook:
[We] are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.
Apple sold 39.3 million iPhones, generating about $23.68 billion in revenue, up 21% from a year ago. IPad sales declined 14% to $5.32 billion, with about 12.32 units sold.
Within the first weekend, the sales from iPhone 6 top the $10 million mark. This is a record- breaking debut for the iPhone 6 and the iPhone 6 Plus models. Tim Cook:
Sales for iPhone 6 and iPhone 6 Plus exceeded our expectations for the launch weekend, and we couldn’t be happier,We would like to thank all of our customers for making this our best launch ever, shattering all previous sell-through records by a large margin.
While our team managed the manufacturing ramp better than ever before, we could have sold many more iPhones with greater supply and we are working hard to fill orders as quickly as possible.
Owners of the new iPhone 6 Plus are angry as it emerges the phone can bend out of shape simply when stored in a pocket. Since the new model launch, a small but growing number of iPhone 6 Plus owners have reported the issue that significantly alters the appearance of the phone. The problem, dubbed ‘Bendgate’ by some on social media sites, is due to the phone’s thin aluminium exterior – but can be solved by ensuring the middle of the phone is not subjected to a large force. A user writes:
@tim_cook hi Tim, I absolutely love my new iPhone 6 Plus!! My favorite feature is the flexible display.
Apple supplier Foxconn hires more workers for its factory in Zhengzhou, China to help meet the huge demand for the new phones. The Wall Street Journal reports that more than 200,000 Foxconn workers are stationed at the Zhengzhou factory with the sole job of assembling the new iPhones and some of its key components. The plant is operating 100 production lines 24 hours a day to keep up with demand. A person familiar with the matter tells The Wall Street Journal:
We have been churning out 140,000 iPhone 6 Plus and 400,000 iPhone 6 every day, the highest daily output ever, but the volume is still not enough to meet the preorders. For iPhone 6 Plus, we are still ramping up the production line. Another reason for the limited supply is the shortage of 5.5-inch displays.
Apple reports a record for first-day pre-orders for its new iPhone 6 and iPhone 6 Plus, hitting over four million pre-orders in the first 24 hours. They also report demand for the products outpaced initial supplies, and “a significant amount” of the devices will be delivered to customers beginning September 19, 2014, when the phones officially go on sale. The remaining orders will get to customers throughout the month of September; however, many iPhone pre-orders aren’t scheduled to arrive to customers until October. Additional supplies of the smartphones will be available to walk-in customers on September 19th, starting at 8 a.m. local time at Apple retail stores.
Apple unveils the iPhone 6 and iPhone 6 Plus. The iPhones have curved edges and bigger screens that measure 4.7 inches and 5.5 inches, up from 4 inches on the iPhone 5S. The iPhone 6 and iPhone 6 Plus feature Apple’s new A8 processor, which is 25% faster than the iPhone 5S. Both iPhones feature an 8 megapixel camera with a new sensor. The iPhones will feature Apple’s new iOS 8 software, a relatively minor update from iOS 7. Both iPhones will be available Sept. 19 in the United States and eight other countries.
Shortly after Apple reveals the new iPhone 6, Verizon Wireless announces they will give customers the phone for free with the signing of a two-year contract. Customers must also turn in their old iPhone to be eligible for the offer. They will accept the following used iPhone models: 4, 4S, 5, 5S and 5C, as long as the device still works. Customers will be given a $200 gift card once they turn in their old phone so they can buy the iPhone 6 for $199.00. Verizon did not announce when the offer will end.
YouTube user Marques Brownlee releases a second scratch test on what he claims is an iPhone 6 sapphire display obtained from a factory, as well as an iPhone 5 for comparison. The iPhone 5 shows much heavier damage than the iPhone 6, but he says the fact that he is able to scratch the iPhone 6 with sandpaper at all proves that it is not pure sapphire, because sapphire is higher than sandpaper on the Mohs scale.
G4 Games says the starting price for the iPhone 6 will be around $848 for the 32GB and over $1000 for the 64GB option, unlocked models.