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

Before you go, we thought you'd like these...
Before you go close icon
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.

Related Stories on Business Insider

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading