Wells Fargo analyst Maynard Um thinks iPhone 5 demand is high enough that shoppers need to be ready for long lines when the smartphone goes on sale in Apple's stores and at other retailers this Friday. Pre-orders for the new iPhone model started last Friday, and within an hour Apple was pushing ship times out two weeks.
Get ready to line up for the iPhone 5
"Anticipate long lines this Friday. The iPhone 5 can be purchased at an Apple retail store (initial launch in 9 countries) for those who didn't get preorders in on time, likely resulting in long store lines," Mr. Um said. "We expect several of these stores to run out their initial supply."
The iPhone 5 includes larger Retina Display than the iPhone 4S at 4-inches instead of 3.5-inches, support for high speed LTE wireless data connections, a faster processor and longer battery life, Apple's new Lightning dock connector, and more.
Apple introduced the iPhone 5 during a media event on Wednesday and said pre-order sales would start on September 14. The phone will be available in stores on September 21, and for customers that bought early enough, they'll see their iPhones delivered that date, too.
Since many of Apple's pre-order sales fall in the two-week shipping delay, Mr. Um expects many of those units won't show up on Apple's books until October -- after the end of the company's fiscal year.
"With demand exceeding initial supply, some of the orders are likely to ship in October," he said. "We remain comfortable with our September quarter estimates, with an upward bias and note every 1 million in incremental iPhone sales equates to roughly US$0.23 in EPS, all else equal."
Mr. Um is maintaining his "Outperform" rating and $740760 valuation range for Apple's stock. Apple is currently trading at $698.18, up 6.90 (1.00%).