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Initial Quantities of iPhone 7 Plus Sold Out, Says Apple


09/15/2016


Initial Quantities of iPhone 7 Plus Sold Out, Says Apple
As Apple Inc prepares to roll out its new gadget in stores, initial quantities of the iPhone 7 Plus have sold out globally, the company said Wednesday.
 
While the smaller iPhone 7 has also sold out in the new jet black color, the company said that supplies of the larger size of Apple's new phone have been exhausted in all shades.
 
Customers can continue to place orders for their desired models online when they enter Apple Stores Friday, when the gadgets hit shelves, but would not be able to purchase the sold-out phones on site, Apple said.
 
"We sincerely appreciate our customers' patience as we work hard to get the new iPhone into the hands of everyone who wants one as quickly as possible," Apple spokeswoman Trudy Muller said in a statement.
 
Earlier this month, Apple launched the new phones at a San Francisco event. The new phones eliminate the traditional headphone jack in favor of new technology and feature improved cameras.
 
Claiming that it is more a reflection of supply than demand, Apple broke with tradition as it said that it will not release first-weekend sales of the iPhone 7 and 7 Plus.

Many at Wall Street fear sales of the iPhone, a critical product for Apple, may be leveling off and the decision of not disclosing the figures sparked concerns among some. Apple shares on Tuesday soared as two U.S. wireless carriers - Sprint Corp and T-Mobile US Inc said that they received strong pre-orders for the iPhone 7.
 
"Based on everything I've seen it looks like demand is very strong," analyst Jan Dawson of Jackdaw Research wrote in an email.
 
Since Apple introduced the size with the iPhone 6 in 2014, the 5.5-inch iPhone model, known as the Plus, has sold out soon after launch. Customers eager to showcase the latest iPhone design also typically snap up phones in newly released finishes.

Meanwhile last week, it’s been a wild week for the world's biggest stock – Apple. The company has added some $50 billion in market capitalization in just three sessions, when its shares surged 3.5 percent Wednesday — after rising 2.4 percent Tuesday — and climbing 2.2 percent on Monday.
 
Based on bullish talk around preorders as well as reviews that were better than expected, investors become more optimistic about the iPhone 7, which goes on sale Friday.
 
On last Thursday and Friday, the stock slid 2.6 percent and 2.3 percent on those days, respectively.
 
"This is real volatility in Apple again, which we should all be excited about, especially because it's to the upside," Stacey Gilbert, Susquehanna's head of derivative strategy, observed on CNBC.
 
According to Gilbert the sentiment is strikingly bullish within the options market. "Investors are using the options here to position for upside," and even if existing short positions are being covered, "buying a call suggests that the investor is nervous that the stock could pop. Any way you look at that, sentiment says that Apple could go higher," Gilbert concluded.
 
(Source:www.reuters.com & www.cnbc.com) 


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