Apple Inc disappointed analysts by falling short of projected weekend sales on the iPhone 5, Bloomberg reports.
Apple still broke its previous opening sales record for the iPhone 4s by selling over 5 million units of the new handset, but demand still outstrips supply for the iPhone 5 and analysts fear the Cupertino-based smartphone maker may miss an opportunity to outpace rivals with its newest product.
The iPhone models still account for around two thirds of Apple's profits and a shaky launch could prove crippling as Android-powered products continue to gobble market share.
"The number is lower than what people had expected," said Brian White, an analyst at Topeka Capital Markets. He had estimated debut weekend sales of 6 million to 6.5 million units, excluding Internet purchases that haven't been shipped. "This seems to be driven more by availability than demand."
Apple shares fell 1.3% to $690.79 at market close in New York. The stock has gained 71% this year.