Apple’s (NASDAQ:AAPL) iPhone 5 has set a new record with its initial orders, impressing investors and forcing analysts to revise their sales estimates for the device. After Apple announced on Monday that pre-orders of the new smartphone had exceeded 2 million in the first 24 hours, Canaccord Genuity analyst T. Michael Walkley issued a research note saying he believed the company could ship between 9 million and 10 million units of the phone by the end of the September quarter.
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“Given the record pre-orders, we believe Apple could ship 9 million to 10 million iPhone 5 models by September 29, or the last day of [fiscal 2012], versus our initial 6 million estimate,” Walkley wrote in a note to investors.
Walkley added that his checks with Apple’s U.S. carrier partners had led him to believe there was “record demand” for the device. In addition, he found that AT&T (NYSE:T), Verizon (NYSE:VZ), and Sprint (NYSE:S) had also seen “solid sales” of legacy iPhone models. Apple dropped the price of the 16 GB iPhone 4S to $99 after the introduction of the new version, while an 8 GB iPhone 4 is now available for free with a two-year contract.
The analyst is also looking forward to a positive next quarter: “Given our checks combined with Apple’s plans for an aggressive iPhone 5 ramp to 240 carriers in 100 countries by year end, we remain confident in our above-consensus December quarter iPhone estimates.”
Walkley is maintaining his Buy rating on Apple stock and a $797 price target. The company’s shares were up a little less than 1 percent at $697.86 on Monday afternoon.
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