The iPhone 5 broke the sales record set by its predecessor the 4S, with Apple reporting sales of over 5 million in the device's first week on the market.
However, though impressive, the figure was a disappointment to analysts who were predicting higher figures.
“The number is lower than what people had expected,” Brian White, an analyst at Topeka Capital Markets who had estimated sales of 6 to 6.5 million, told Bloomberg Businessweek. “This seems to be driven more by availability than demand.”
Apple shares fell two percent Monday morning, Agence France Presse reported, at least in part due to the supply restraints for the iPhone 5.
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"Demand for iPhone 5 has been incredible and we are working hard to get an iPhone 5 into the hands of every customer who wants one as quickly as possible," said Tim Cook, Apple's chief executive, in a statement early Monday.
Many customers who ordered the new device from the world's biggest technology company have also been less-than-thrilled, as the aluminum-plated phones have been reportedly coming out of their boxes with scratches or scuffs, the Verge reported.
According to an unofficial poll of new iPhone owners, MacRumors found that over 35 percent of the phones were damaged "out of the box."
However, Wall Street still has high hopes for the device, with JP Morgan predicting that Apple could sell as many as 50 million units in the fourth quarter, CNET reported.
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