Credit: Shutterstock photoApple ( AAPL ) began taking online preorders for its flagship iPhone X smartphone at 3 a.m. ET on Friday and expected delivery dates quickly got pushed back to five to six weeks, confirming reports of short supply for the 11th-generation iPhone.
[ibd-display-video id=2431069 width=50 float=left autostart=true]After lackluster sales of Apple's other new smartphones this year, the iPhone 8 and iPhone 8 Plus, the company is hoping many customers were simply waiting for the premium iPhone X. The iPhone 8 series phones went on sale Sept. 22 after a week of preorders. The iPhone X officially goes on sale next Friday, Nov. 3.
Within 30 minutes of Apple taking preorders for the iPhone X, promised delivery dates slipped from the Nov. 3 launch date until early December.
Apple investors cheered the news as a sign of strong demand for the high-priced handset. Apple shares were up 3.2%, near 162.50, in afternoon trading on the stock market today . Apple stock broke out of a cup-with-handle base with a buy point of 160.97.
Apple is selling versions of the iPhone X in two colors - silver and black - and two data storage configurations of 64 and 256 gigabytes. The 64-gigabyte phones cost $999 and the 256-gigabyte models cost $1,149.
Apple has a lot riding on the new handsets. Many analysts have predicted the 11th-generation iPhones will spur a "supercycle" of upgrade activity among iPhone users who have stretched the life of their current devices, waiting for a phone worthy of an upgrade.
IBD'S TAKE:Apple stock has an IBD Composite Rating of 70, meaning it has outperformed 70% of stocks in key metrics over the past 12 months. For more analysis on Apple, visit the IBD Stock Checkup .
The iPhone X, pronounced "ten" as in the Roman numeral, is Apple's 10th-anniversary smartphone. It features a 5.8-inch OLED screen with no physical home button to interrupt the display.
The iPhone X uses facial recognition technology for security to unlock the device and make Apple Pay purchases. It sports upgraded cameras, processors and a sleek new design. Like the iPhone 8 series devices, it boasts wireless charging capability and augmented reality technology.
Apple has faced several production snags with the iPhone X involving new components, which have pushed back full production for the handset.
In a note to clients Thursday, Rosenblatt Securities analyst Jun Zhang said Apple is ramping up production of the iPhone X, but is likely to have only 3 million units at launch.
In a report Friday, Drexel Hamilton analyst Brian White said iPhone X sales were "off to a strong start." He reiterated his buy rating on Apple stock with a price target of 208.
"The combination of strong demand and supply constraints is driving surging shipment delivery times for the iPhone X," White said. "Apple is taking the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultraluxury smartphone market with the highest priced iPhone in the company's history."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
