SAN FRANCISCO -- A mosh pit of fans
scrambling for the iPhone 5 snapped up a record 5 million units in the
U.S., Apple announced Monday. Analyst projections that up to 10 million
would be sold the first weekend proved far too optimistic, although the
smartphone was sold out almost everywhere.
Meanwhile,
riots and brawling at a partner electronics factory in China led to a
one-day suspension of work there. The cause of the clash, which
erupted in a nearby dormitory among 2,000 workers, was unknown. But the
closure of the plant by Foxconn Technology Group -- while unknown
whether it builds iPhones -- raises further questions about Apple's
ability to meet customer demands. The factory was expected to open on
Tuesday.
Apple has struggled to keep up with demand for its iPhone 5, which goes on sale in an additional 22 countries on Friday.
"While
we have sold out of our initial supply, stores continue to receive
iPhone 5 shipments regularly, and customers can continue to order online
and receive an estimated delivery date," CEO Tim Cook said in a
statement.
Apple declined to comment on the issues at Foxconn, and the Chinese company did not respond to requests for comment.
Supplies
of iPhones at Apple Stores around the U.S. have run thin, and online
orders ship in three to four weeks. San Francisco's downtown store had
no models available on Monday. Fourteen out of 20 stores surveyed across
the nation were sold out over the weekend, according to Piper Jaffray.
Tight supplies come after Apple sold more
than 4 million iPhone 4S models last year in three days and faced
ramped-up expectations for as many as 10 million to be sold in the same
period this time around, according to Piper Jaffray forecasts.
"I
feel like anything is going to cause a supply problem, whether it's the
Foxconn riot or litigation with Samsung," Piper Jaffray analyst Gene
Munster says.
Supply issues aside, Apple is
under heavy criticism among users about its Maps app, which displaced
Google Maps. Some owners of older iPhone models have delayed downloading
the new iOS 6 operating system that Apple made available last week. "I
am afraid to upgrade my iPhone because I hear the Apple Maps suck.
True?" Howard Blackson, an urban designer in San Diego, wrote on
Twitter.
Rivalry between Apple and
Google has intensified with the exclusion of Google's Maps and its
YouTube service as preloaded apps on the iPhone 5. Shares of Apple
traded 1.3% lower to close at $690.79, while Google's stock rose 2.1% to
$749.38.
USA Today