iPhone 5 orders top 2 million in 24 hours

Associated Press

CUPERTINO, Calif. — Since Apple started taking iPhone 5 orders on its website at 2 a.m. on Friday, buyers who have a two-year service agreement with AT&T, Sprint or Verizon Wireless have been able to order the phone for $199 (16 gigabyte model), $299 (32 GB) or $399 (64 GB model).

Apple said Monday that while most orders will be delivered on Friday, at 2 million orders, demand

for the iPhone 5 exceeds the initial supply. As a result, some of the devices are scheduled for delivery in October.

The company’s stock added 1.2 percent, or $8.50, to close at $699.78 on Monday.

The iPhone 5 represents the first major revision of the iPhone’s screen size since the first model was introduced in 2007. The new iPhone has an elongated screen —4 inches measured diagonally—

that allows room for another row of icons and lets widescreen movies fit better. The calendar

will now show five days at a time instead of just three. Previous

iPhone models had 3.5-inch screens. The new phone is also thinner and weighs less than previous

models. It can operate on LTE cellular networks and sports a new processor and updated software.

T. Michael Walkley, an analyst with Canaccord Genuity, said he believes the iPhone 5’s “differentiated

form factor versus the iPhone 4S” and other improvements

should drive strong iPhone 5 sales. The record advanced orders

on Friday and through the weekend caused Walkley to revise

his previous prediction that Apple would sell 6 million of the new iPhones by September 29. He now believes “Apple could ship 9 million to 10 million” in that time, he told investors in a note on Monday.

Janney Capital Markets analyst

Bill Choi said Apple’s announcement

Monday “suggests iPhone 5 is running well ahead of iPhone 4S.” In a note to investors,

Choi reaffirmed his earlier expectation that Apple will sell 7 million to 10 million iPhone 5s by the end of September.

It won’t be easy for Apple to top the breakneck sales pace set by previous iPhones. Apple said last year that it sold over 4 million iPhone 4Ss just three days after its launch on October 14. That launch occurred less than two weeks after the death of Apple’s iconic founder Steve Jobs and as the iPhone 4S went on sale, scores of Apple devotees were still mourning him with candlelight vigils and impromptu memorial

ceremonies outside of Apple stores across the globe.

The iPhone 5 will be available at Apple’s 356 U.S. stores starting

Friday. Each customer who makes a purchase at an Apple store will be offered free personal setup service, which will help them customize their device.

The phone will be available in more than 22 countries on Sept. 28.

The iPhone 5 will be available at Apple’s website as well as through AT&T, Sprint, Verizon Wireless, some Best Buy, RadioShack, Target and Walmart stores and certain Apple authorized resellers.

AT&T Inc. said it set a sales record for the iPhone 5, with more orders than any previous iPhone model on the first day of orders and over the weekend.