Apple shares surge on iPhone-launch numbers
Successful launch of new iPhone models pushes Apple shares higher; stock still down in 2013
NEW YORK (AP) -- Shares of Apple Inc. soared Monday after the company said that it sold 9 million new iPhones in the best launch ever for the phone.
THE SPARK: On Friday, the company began selling a lower-cost version called the 5C and a top-of-the-line 5S. When the weekend ended, Apple said demand for the 5S had exceeded the supply, and many online orders would be shipped in the coming weeks.
Sales topped the forecasts of many analysts, who had been lukewarm about the new models.
Apple also said that fiscal fourth-quarter revenue will be at the high end of its previous outlook of between $34 billion and $37 billion. Analysts had forecast $36.17 billion, according to FactSet.
THE ANALYSIS: "While the company did not break out 5s versus 5c units, indications are that most customers bought the high-end 5s, as early adopters tend to buy the most advanced products," said Janney Capital Markets analyst Bill Choi. "However, we believe that sales of the 5c might be better than expected."
Cantor Fitzgerald analyst Brian White said limited availability of the 5S indicated that demand for the 5C was stronger than expected.
"In our view, the criticism of the iPhone 5C as being too expensive versus expectations and thus demand would be muted were proven wrong," he wrote in a note to clients.
SHARE ACTION: Apple shares gained $19.38, or 4.2 percent, to $486.79 in morning trading. The shares have traded in a 52-week range of $385.10 to $695.12. Even with Monday's gain, the shares are down 8.5 percent for the year so far.
