Apple Up Premarket on Record Setting iPhone Sales

Andrew Klips |

Tim Cook CEO of AppleIt doesn’t matter if you are a fan of the Apple (AAPL) iPhone or not, it is hard to ignore the sheer explosiveness across the consumer world that is created when the latest model is about to hit the material or virtual shelves of retailers. According to Apple and AT&T (T), the latest version of the already iconic phone is no different. In fact, the cosmic sales boom is getting bigger. After making prior comments that it “been completely blown away by customer response,” Apple released a statement this morning noting the massive volume of pre-orders for their newest smartphone model. Pre-orders began being taken on Friday.

The company said that pre-orders tallied more than 2 million units in the first 24 hours. This number far exceeded the one million pre-orders in the first 24 hours of the iPhone 4S last year and crushed the 600,000 pre-orders for the iPhone 4 in 2010 in the same time frame. Apple looks to be on pace to meet or exceed analyst sales predictions of six to ten million units in the first week.

AT&T started the fervor this morning with commentary that their orders for the iPhone 5 were breaking records set by its predecessor in October 2011. No actual numbers were provided to support the claim, but AT&T said that it has taken a record number of orders since the sixth edition of iPhone was offered on Friday. Investors will be watching for AT&T to release some press today similar to Apple’s news revealing hard numbers from sales which could prove a catalyst for stock movement.

When the iPhone 4S launched nearly one year ago, AT&T reported 200,000 preorders in its first 12 hours of sales, so the company is obviously saying that those numbers have been topped by the iPhone 5.

The official hard launch date for the iPhone 5 originally was set for September 21, but the high demand has bumped some arrival dates for the phone to arrive from China back by up to three weeks. AppleInsider.com reported that, beginning yesterday, the first shipments for preorders are in transit from ZhengZhou, China.
Apple, the world’s largest public company, is keeping a steady stride and distancing itself from its closest competitor, Exxon Mobil (XOM). With Friday’s close pushing a share of AAPL to $691.28, the company has a market capitalization of $648.01 billion, 52 percent greater than XOM who rings in at $426.05 billion. Shares have made new all-time highs in each of the last five weeks and have risen about 75 percent so far in 2012.

Shares are printing $697.02 in premarket trading as of 9:00 AM Eastern.

By Andrew Klips

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 112.71 -1.91 -1.67 52,491,260
JPM.P.D JPMorgan Chase Bank N A London Branch Depositary S 26.08 0.05 0.19 98,066
T AT&T Inc. 41.28 0.17 0.41 18,867,573
XOM Exxon Mobil Corporation 83.45 -0.09 -0.11 12,667,106

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