Record breaking Q1 iPhone sales just aren’t good enough for Apple


Apple has posted its first quarter results, showing how the company hit new records with sales of its iPhones, iPads and Macs.

The company sold 51 million iPhones, 26 million iPads, and 4.8 million Macs – a substantial increase from its year-ago first quarter sales of 47.8 million, 22.9 million, and 4.1 million, respectively.

The company is elated with the high demand for its flagship smartphone iPhone 5S. But because of this huge demand, it hasn’t been able to provide enough of the things for its customers. For those still waiting to get their hands on the much coveted iPhone 5S, Apple CFO Peter Oppenheimer stated that the company won’t be able to meet the supply-demand balance until the end of the quarter.

Though Apple hit new records, CEO Tim Cook admitted that sales of the iPhone 5c weren’t quite as good as they’d been expecting. Indeed, the sales figures were far below the company’s expectations. Though exact numbers were not given, Cook stated that sales of the handset represented a smaller mix of total handset sales, something he attributes to consumers’ bigger interest in the iPhone 5S.

“I think the 5s, people are really intrigued with Touch ID,” Cook said. “It’s a major feature that has excited people. And I think that associated with the other things that are unique to the 5s, got the 5s to have a significant amount more attention and a higher mix of sales.”

The iPhone 5c is Apple’s first take on introducing a slightly more affordable iPhone, but many just see it as a downgraded version of the iPhone 5, since it comes in a plastic casing. Yes the colors look quite funky, something the younger generation might be interested in, but if you already own an iPhone 5, it would be a wiser move to buy the 5S, rather than upgrade to the 5c.

So what do the troubling sales of the iPhone 5c mean for Apple’s strategy? Well, it still did achieve record-breaking sales, and so it might not abandon the strategy for its next line of iPhones… But then again, it could come up with a plan to offer a truly mid-range iPhone without resorting to using plastic casing.

Though Apple’s first quarter results were positive, investors weren’t so happy, as the company’s shares slumped by eight percent. Investors are however expecting better sales and stronger revenue forecasts for the March quarter, when the company is expected to report the results of its recent partnership with China Mobile.

“There’s no doubt that shipments (to China Mobile) are lower than almost anybody expected,” said Pacific Crest Securities’ Andy Hargreaves. “Globally, the high-end smartphone and tablet markets are saturated, and that’s not going to grow.”

Apple is now faced with the task of assuring investors that its partnership with China Mobile will result in the growth of its mobile sales and not stagnate.