Expecting Tim Cook to ride in and announce the first weekend iPhone sales? You are being left out in the cold today, with the company playing its cards close. No peek if you wanted firm numbers, but it has led to a pop in shares.
Apple told the WSJ orders for the iPhone 6S and 6S Plus were ‘very strong’ and sales were on pace to break the 10 million units sold record it had with the iPhone 6 (Plus).
That’s new. Apple is taking its equivocations to Wall Street. Normally it saves those for talking about the hardware. It’s beautiful. Innovative. Like a butterfly wrapped in special aluminum. We get it Jony Ive. It’s nice to look at.
Why the hell did it take days to confirm the phone has 2GB of RAM? You realize people are going to tear these things apart the second the box shows up.
In the past, that type of waffling might generate concern. In this case, investors have other things to worry about. The Fed will make its decision soon on interest rates, and for once, it truly is a toss-up either way.
Apple has since relinquished the pop it enjoyed when the opening bell rang thanks to the broader market trending lower. Apple could have had firm numbers today, and it would have shaped out the same.
Everyone is paying attention to what happens on the interest rate front.
iPhone Preorder Strength
A reason for a lack of solid iPhone preorder numbers could be they just don’t know yet. In previous launches, China was not a Day One country. It is now. That alone damn near doubles the market Apple can tap for preorders.
Another issue? The preorder program. Lots of hand wringing on social media and forums over if consumers should jump to Apple’s program or stay with their wireless carrier. People who jump to the Apple iPhone Upgrade Program will have to go into a retail store.
While intriguing on the yearly upgrades with AppleCare+ included, consumers have to make a reservation at a local Apple retail store to order. Online orders can handle as much traffic as you can throw at them. The Apple employees? Not so much.
Credit checks, signing the loan documents and the ability to only buy two phones at a time limit the ability of families looking to wholesale upgrade.
Apple can beat the iPhone 6 performance last year. Adding China to the launch almost assures a win in the department. The stock has been beaten down and is 40% under what Nasdaq stocks are trading based on forward earnings.
It could be a case of Apple setting the bar low on purpose to blow it apart on earnings. Why give concrete numbers when the market is freaked out about interest rates coming off 0 and rising .25 percent.
Sure, it’s fun to read the tea leaves of preorder numbers. Apple has become a bellwether stock, whether it likes it or not. How many did they sell over the weekend? Who knows, but you can count on the company hitting profit targets.
I’m just going to leave my complaint about the base iPhone not having 32GB of storage. It’s a respectable grumble. Why not offer the base at 16GB just to entice consumers to the 64GB for just a $100 more?