Neil Hughes
As the iPhone 5 went on sale Friday, lines at retail stores were again subdued compared to previous product launches, as Apple's new reservation system prevented excitement from turning into potentially dangerous crowds.
Reacting to concerns over relatively small lines at Apple's retail locations in China on Friday, Gene Munster of Piper Jaffray reminded investors that Apple's reservation system was designed to avoid crowds.
It's the same scenario as a week ago, when the iPad mini debuted in China to few crowds at Apple's stores. That product was also launched with Apple's reservation-only system, which also helps to prevent scalpers from getting their hands on the company's latest devices.
The system was instituted after the iPhone 4S launch in January of this year was disrupted by an unruly crowd in Beijing. The crowd prevented Apple from opening its store in Sanlitun, and the company decided to postpone the launch of the iPhone 4S in Beijing and Shanghai.
A scuffle also occurred in mid-2011 for the launch of the iPad 2 and white iPhone 4, where customers shook a glass door and shattered it at the Sanlitun Apple Store.
As of Monday, preorders for the iPhone 5 through carrier China Unicom were at more than 300,000 ahead of the product launch, suggesting that demand was strong. Munster noted Friday that China Unicom saw 200,000 preorders for the iPhone 4S, suggesting demand is even greater for Apple's latest model.
Munster also cited increased distribution as another potential cause for small lines for Friday's launch. He believes that Apple has about two times as many points of sale for the iPhone 5 as it did when the iPhone 4S debuted.
The iPhone 4S only launched on one carrier, while the iPhone 5 is available on two: China Telecom, in addition to China Unicom.
Munster estimates that Apple will sell 45 million iPhones in the December quarter, with between 4 million and 5 million of those coming from China. Piper Jaffray has reiterated its "overweight" rating for AAPL stock, with a price target of $900.
William Gallagher
Andrew O'Hara
Malcolm Owen
Christine McKee
Mike Wuerthele
41 Comments
I'm confused. Will this raise or lower the stock price¿
The iPhone 4S only launched on one career, while the iPhone 5 is available on two: China Telecom, in addition to China Unicom.
The Automated Slave needs an editor. Don't you guys re-read your posts???
The Automated Slave needs an editor. Don't you guys re-read your posts???
I can't seem to save my edits, otherwise I would have fixed that already… Hmm.
They should create chaos because orderly sale will not hype up the product, and sales suffer. People needs to feel that they own the one of the few phones around in order for them to get excited. This was what Jobs understood, and Cook to learn about. Another thing great about the Apple New Product introduction was that new products were spaced out a few months. Even everyone wants to contribute their hard earned money to Apple, It is not smart for them to squeeze the last dollar too often from their loyal customer base. You need them to replenish the piggy bank first before you introduce another new product. Case in point: iPhone and shortly afterwards iPad mini.
Listen to Munster, he'll tell you how it really is.