Apple closed out 2012 on a high note with its iPhone sales, but many fear its momentum is already beginning to peter out.
The Cupertino, Calif., company said today that it sold 47.8 million iPhones in the fiscal first quarter (or the last quarter of the calendar year). The results were above analysts' average projected sales of 46 million to 47 million units, although many analysts had higher estimates, and were left disappointed. It sold 37 million units a year ago.
What remains to be seen is whether the iPhone 5 can keep up with the pace of sales amid increasing competition from the likes of Samsung Electronics and its Galaxy S line. The iPhone franchise has long been the driver of revenue and earnings growth for Apple and is among the most crucial parts of its business.
Apple executives didn't directly address the issue, but noted that supplies were constrained. In addition to a shortage of iPhone 5 units in the early part of the corner, supplies of iPhone 4 were also constrained, CEO Tim Cook said during a conference call with analysts. He did say that he expects iPhone sales to grow over a year ago.
Cook also seemingly dashed any hopes of a larger display for the iPhone by touting the iPhone 5's larger 4-inch Retina Display screen. He reiterated the screen's ability to work with one hand.
"We put a lot of thinking into screen size," he said.
Apple had cut the component orders for iPhone displays, suggesting a letdown in demand, according to the Wall Street Journal.
Cook addressed that rumor directly, saying he would question the accuracy of any rumor, and noting that the single data point couldn't accurately reflect the larger picture of Apple's business.
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