Apple's iPhone 5 Sales Are Actually a Big Letdown: 2 Charts Spell Out Why

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Iphone 5 a let downBy Nicholas Carlson

Apple just reported that it sold more than 5 million iPhones over the iPhone 5's opening weekend.

This is a very disappointing number.

It's below top Apple analyst Gene Munster's estimate of 6 million to 10 million
. Worse, it indicates that growth may be slowing at Apple.

Take a look at this chart.

Opening weekend sales grew 70% between the 3GS and the iPhone 4, and then an astounding 135% between the 4 and the 4s. That's acceleration. iPhone 5 sales, meanwhile, grew only 25%. That's massive deceleration.
iPhone 5 Sales and growth opening weekend

Nicholas Carlson/Business Insider

Digging deeper into the numbers, we find more bad news. Check out this second chart.

Apple sold the iPhone 5 in 9 countries over its opening weekend. It sold the iPhone 4S in 7. It actually sold fewer iPhones per country this year than the last. That's not just deceleration, that's shrinkage:

iPhone Sales per country

Decelerating growth is not good for a company like Apple, which despite a modest P/E ratio, has one of the most generous trailing 12 month revenue multiples of any hardware company on the public markets.

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Kenny Ojos

You can't find an iPhone 5 anywhere. Makes me think this article is stupid.

September 28 2012 at 12:20 AM Report abuse rate up rate down Reply
cslinz62

I'm just going to stick to using my little Net10 phone. It does what I need it to do. Talk & text only. Nothing fancy. Less than $20.00 a month to keep it on. I can talk all I want on my landline for $23.00 a month with AT&T.

September 26 2012 at 1:04 AM Report abuse rate up rate down Reply
1 reply to cslinz62's comment
Steve

mmm 20+23=43 not including any fees or taxes... for both a landline for unlimited calling and net10 for outside calling/texting...or you could get tmobile or metro pcs either one with unlimited texting and calling for 50 bucks.. metro pcs is 40 a month with unlimited minutes text and data, tmobile is 50 with unlimited everything as well..yea..

September 27 2012 at 1:23 AM Report abuse rate up rate down Reply
cslinz62

I'm just going to stick to using my little Net10 phone. It does what I need it to do. Talk & text only. Nothing fancy. Less than $20.00 a month to keep it on. I can talk all I want on my landline for $23.00 a month with AT&T.

September 26 2012 at 1:03 AM Report abuse rate up rate down Reply
cslinz62

I'm just going to stick to using my little Net10 phone. It does what I need it to do. Talk & text only. Nothing fancy. Less than $20.00 a month to keep it on. I can talk all I want on my landline for $23.00 a month with AT&T.

September 26 2012 at 1:03 AM Report abuse rate up rate down Reply
polarbears217

How many phones and stuff can companies keep expecting us to buy....If you want us to buy a phone every week, make it out of cheese or jello.....It took me a few months to figure out all the ins and outs of my Iphone and I still don't use all the features.....There aren't enough people in the market with the ability to prop up a company's sales and profit year after year....It is a durable good, not a banana or yogurt or a tire...
There's a limit to how much can be sold........Stop harrassing the poor engineers and software developers and healthcare workers and farmers because growth doesn't go on and on and on....It simply cannot !....
You don't need a crystal ball or a telescope to see that.....in any field....

September 25 2012 at 11:04 PM Report abuse rate up rate down Reply
erin1law

When you pawn off old technology as new just because it has an apple logo on it people eventually figure it out. Wow a bigger screen and 4g!!!! Besides Verizon many people can not even get 4g service yet and a bigger screen does nothing to make the phone better. If people really don't care about having a better product because they only pay for the logo on the back then apple should bring back pager and beeper technology. I guarantee they will see 75% growth in the market.

September 25 2012 at 11:00 PM Report abuse rate up rate down Reply
palmnut2

yeah, with the turmoil this week at foxconn, and the memorable footage of how the chinese factory workers are treated- why don't we all just 'sit on' this latest toy and give Apple some pause (along with most of the industrial world's companies) to think about how much human suffering is necessary before we won't do business this way anymore? Look at this issue, it's all over the internet. When does it end, when do we start putting profits and gadgets beneath human dignity?

September 25 2012 at 10:21 PM Report abuse rate up rate down Reply
mondock

change the power cord so it is compatible with all my other apple products, and then I MIGHT consider the 5 - but for now, no way!

September 25 2012 at 9:53 PM Report abuse +1 rate up rate down Reply
ryan

this is such a biased review.
there are other determining factors that are completely ignored.

September 25 2012 at 9:24 PM Report abuse rate up rate down Reply
laugh

WOW - over 5 million sold at at least $200 and someone's calling it bad news? SOMEONE must be using "new math".

September 25 2012 at 7:46 PM Report abuse rate up rate down Reply