Apple today announced it has sold over five million iPhone 5s, just three days after its launch on September 21, and more than 100 million iOS devices have been updated with iOS 6. The iPhone 5 is available in the US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK, and will be available in 22 more countries on September 28 and more than 100 countries by the end of the year.
iPhone 5 is available in the US for $199 (US) for the 16GB model with a 2 year contract from AT&T, Verizon and Sprint, which pay Apple $600 for the device.
That number blasted past sales of the iPhone 4s, which Apple introduced it in October 2011. It sold more than 4 million units in its first weekend.
According to the latest study from ComScore, AT&T leads in pre-orders with about 68% of total online sales in the first three days. This records the best order ever received by AT&T for the iPhones. The other two major rivals – Verizon and Sprint – accounted for just 24% and 8% share of iPhone 5 sales, respectively.
When compared to the 68% share of iPhone 5 sales, AT&T received merely 48% of pre-orders for iPhone 4S in the first three days and was followed by 35% for Verizon and 17% for Sprint. This suggests that though AT&T is behind Verizon in deploying 4G LTE services needed for iPhone 5, the existing customers, who are eligible for upgrades, are boosting demand for the new product.
The company now has to pay $100 extra per phone to Apple, when compared to previous iPhone 4S, in the form of subsidy. This subsidy of $400 per iPhone 5 will dilute the company’s earnings for the next several quarters, but the revenue expected from a 2-year data contract should reap big profits, longer term.
The increase in percent of AT&T sales surprised some observers, who believed that Verizon’s LTE lead would compel many to jump ship.