Apple sold a record 10 million iPhones in the first weekend after its new larger models went on sale. Bobbi Rebell reports.
It's a big number for the big phones- Apple sold more than 10 million of its new larger iPhone 6 and 6 Plus' over the weekend- and CEO Tim Cook says they could have sold even more if they'd had them on hand. Good news for the holidays: JMP Securities' Alex Gauna: SOUNDBITE: ALEX GAUNA, MANAGING DIRECTOR, JMP SECURITIES (ENGLISH) SAYING: "The speculation out there is that Apple is preparing to sell between 70 and 80 million iPhones this holiday season, and this would be up from 50 to 60 million in the prior holiday season, so somewhere around 30% increase. " But then the question is, with all those larger iPhones wrapped up under the tree- are the iPads old news? BGC's Colin Gillis: SOUNDBITE: COLIN GILLIS, TECHNOLOGY ANALYST, BGC (ENGLISH) SAYING: "When you start to have a larger screen it does negate to a degree your need, you know, if you have a 5.5-inch phone do you need a 7-inch tablet as well? Right, because the phone, you know, they call it a phablet, it serves both roles. And so, you may see some cannibalization happening, and already we've had weak iPad numbers for the last 2 quarters." Gillis, who has a hold on Apple stock, is enthusiastic about new revenue streams- like the Apple Watch- but warns the bar is very, very high: SOUNDBITE: COLIN GILLIS, TECHNOLOGY ANALYST, BGC (ENGLISH) SAYING: "If they take their most successful launch which was the iPad, right, most successful recent launch, and they plus it up by 30%, so it's even that much more successful. That means about 25 million watches sold in the first year, which is you know, that is a tremendous number. It would be a big success. But if you use an average selling price of $500, right, you end up with $12.5 billion, right? A big number. But it's still only a little more than 6 percent of Apple's total revenue. So when you have a company this big, that has been this successful, and this profitable its hard to move the needle." The iPhone, however remains, the biggest cash cow for Apple by far, accounting for the majority of the company's profits.