(By Rich Bieglmeier) We have been covering Google Trends for the keywords of iPhone and iPhone 5 for a few weeks. In all our previous research, we found that the Search Volume Index (SVI) scores for Apple Inc.'s
) latest and greatest smartphone lagged iPhone 4 and iPhone 4S at similar points prior to the official unveiling.
Last Wednesday, CEO, Tim Cook showed off the most anticipated product of 2012, calling the iPhone 5 ""an absolute jewel." By now, you are familiar with all the upgrades for the new phone. So, we won't bore you with redundancy. iAddicts will be able to get their hands of the phone this Friday, September 21, 2012.
By all consumer accounts, Apple's iPhone 5 is a smashing success. Preorders are stratospheric with 2 million units ordered within the first 24 hours, doubling 1 million for iPhone 4S in its first day.
Things are likely to get Tickle Me Elmo hot this weekend.
Gene Munster at Piper Jaffray wrote, "Given the 2 million pre-orders, we remain confident that Apple can deliver 8 million (range of 6-10 million) iPhones in the launch weekend. The reason we are confident in the 8 million is two-fold. First, initial 24 hour pre-orders for the iPhone 5 were up 100% y/y from the iPhone 4S. Last year, pre-orders accounted for 25% of total weekend launch unit sales. Assuming the same initial pre-order/retail distribution, the pre-order total would suggest 8 million launch units."
Based on Google Trend searches, iStock sees weekend demand in the neighborhood of 5.1 million iPhone 5s, for a total of 7.1 million units from weekend sales and preorders. That's a huge, HUGE, shift from just a week ago.
According to MarketWatch, the average selling price for the iPhone in the June quarter was $624. It's estimated that the iPhone 5 costs about $200 to make, better estimates will be available following Friday. Seven million phones at $624 equals roughly $4.43 billion in revenue. With gross margins of more than 40%, Apple could earn more than $1.77 billion in gross income, or close to $2 per share.
Not only is demand up, the SVI for iPhone and iPhone 5, combined, vertically soared by 167% immediately following the new iPhone introduction (see table below). It's as if people were waiting for permission from Tim Cook to start their online queries.
While our earlier reports showed iPhone 5 trailing, badly, both iPhone 4 and iPhone 4S in SVI intensity, the latest numbers are like our sales projections, through the roof. Now, iPhone 5's totals are roughly equal to iPhone 4 and 4S – combined!
Preorders show that iPhone 5 is off to a hot start, Google Trend suggest the fire is about to become an inferno.
| || || || || ||SVI SCORES|| || || || || |
|2010||2011||9-13-12 Update||9-19-12 Update|
| iPhone || iPhone 4 || Total || iPhone|| iPhone 4s|| Total|| iPhone|| iPhone 5||Total|| iPhone|| iPhone 5|| Total|