Why Apple Soared $23 Today

Apple  (NASDAQ: AAPL  ) impressed investors this morning by announcing that 9 million iPhone units were sold over launch weekend. That figure came in much higher than the Street expected. Analysts were looking for unit sales in the range of 5 million to 8 million. Apple didn't break out product mix, but supply constraints on the iPhone 5s suggest that many of those units may have been the iPhone 5c.

While the headline figure crushed estimates, it's important to remember that this year Apple is including two different models in its total. In all prior years when the company has launched new iPhones, it only announced unit sales for the high-end flagship. Last year's 5 million iPhone 5 units actually disappointed investors, so this year the tables have turned.

The Mac maker even took the extra step of filing a fresh 8-K with the SEC, saying it now expects both revenue and gross margin for the current quarter to come in at the high end of previously provided guidance. That puts the top line near $37 billion and gross margin around 37%. Consensus estimates are calling for $36.2 billion in revenue this quarter.

In the following video, Erin Kennedy discusses the iPhone launch weekend with Evan Niu, CFA.

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Read/Post Comments (7) | Recommend This Article (16)

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  • Report this Comment On September 23, 2013, at 10:28 PM, dwilh51183 wrote:

    WHO CARES EVAN. 9 MILLION SOLD IS 9 MILLION, WHICH EQUALS LOTS OF CASH FOR AAPL. SAMSUNG PEOPLE ARE TRADING IN THEIR PHONES BECAUSE THEY HATE DROPPED PHONE CALLS AND SKIPPING VOICES EVERY DAY, BUT THATS WHAT YOU GET WHEN THE GALAXY LINE OF PHONES HAVE NOTHING BUT CHEAP COMPONENTS INSIDE...MOSTLY PLASTIC. AAPL ROCKS AND DESERVES TO TRADE AT A 2OOO P.E.LIKE AMAZON, ALTHOUGH THE LATTER LOSES MONEY ON ALL THEIR PHONES AND SHOPPER TABLETS THEY SELL. AAPL STANDS FOR QUALITY. WHAT A GREAT PHONE THE 5S IS!!

  • Report this Comment On September 23, 2013, at 10:33 PM, dwilh51183 wrote:

    AAPL WILL SOAR ANOTHER 25$ TOMORROW AFTER 5-6 ANALYSTS UPGRADES. THE CLOWNS THAT DOWNGRADED AAPL LAST WEEK SAYING THEY EXPECTED AAPL TO SELL 26 MILLION WILL HAVE TO REVISE THEIR FORECASTS NOW THAT THEY ARE EATING CROW FOR LUNCH. AAPL IPHONE PEOPLE ARE ALL UPGRADING FROM OLDER MODELS BECAUSE THEY CAN NOW TRADE IN THEIR OLD PHONES OR SELL THEM FOR 100-500 ON CRAIGSLIST OR EBAY, SO WHY NOT GET THE GREATEST PHONE EVER MADE. A BIG SHORT SQUEEZE IS COMING FOR AAPL BECAUSE I'VE HEARD TIM COOK HAS AUTHORIZED THE 55 BILLION BUYBACK TO GO FULL STEAM AHEAD

  • Report this Comment On September 23, 2013, at 11:31 PM, rcloud0 wrote:

    Your site has filled with all those 'expert' opinions nothing but negative about APPLE until NOW! How dare they even pretended they understood everything about new iPhones before it released in the market and how dare they even tried to be a 'knew-all' about Chinese consumers without knowing Chinese spending cultural, background etc..let alone being here in China??

    'foot in the mouth' moment perhaps? If anyone listened to them and sold shares were real FOOL!

  • Report this Comment On September 23, 2013, at 11:43 PM, thethreestooges wrote:

    APPLE soared today not because it impressed investors.

    Investors already bought them last week and the week before when novice analysts downgraded and wrote negatives posts all over the web.

    APPLE soared today because the shorts are covering their positions when they saw APPLE sold 9 millions smartphones in 3 days and APPLE up their guidance.

    When APPLE report their earning, it will be back to $700 again!

  • Report this Comment On September 24, 2013, at 12:13 AM, JAVKO wrote:

    You are a piece of work!

    Sells 9M over 3 days, ups estimates and you still bash!

    I wonder who pays subscription fee to a bunch of paid bashers?

  • Report this Comment On September 24, 2013, at 2:25 AM, VinWin wrote:

    This analyst is a moron. Most of the iphone sales is 5S, not 5C. Just talk to anyone who have ordered an iPhone. Most of the people held out till this week to get the 5S, not the 5C. 5S is entirely sold out all over the world but 5C is still available. Apple must be just counting the orders even though it hasn't been shipped yet. And guess what, most of the order of the 5S are the 64 bits. This means apple's most expensive phone is selling the best !! There should be quite good upside to the stock from here.

  • Report this Comment On September 24, 2013, at 2:48 AM, fulldisclosure wrote:

    Market analysts to Apple: "Every silver cloud has a gray lining."

    What these analysts always overlook in their predictions (aside from their mountain of cash in the bank) is the word SALES. Factual sales to actual customers...not merely manufactured, in-the-chain, shipped, or released -- as their competition report. These phones aren't just ready to ship, sitting on store shelves, riding back and forth on trucks (to appear out of stock). They're units that have been actually sold -- full margins and all -- model differences notwithstanding.

    If actual annual sales figures can't be compared directly because of availability, actual phone activation or hourly web usage should be compared to see popularity of platforms.

    Comparing Apples to apple competitors, with like facts, has never been more necessary to truth. All else is either bias or incompetence.

    How can they expect anyone to buy their predictions for the future, when they fail so hard on ones like this?

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