The release of iPhone 5 last month had already surpassed web traffic volume of Samsung Galaxy S III. This is primarily because in such a very short time Apple had sold millions of iPhone 5. Add to that the fact that iPhone 5 is equipped with 4G browsing speeds thus escalating data usage to greater heights. In a 7-day Chikita Insights analysis between October 3 and October 5, there were 56% Apple iPhone 5 impressions as compared to 44% Samsung Galaxy S III impressions. According to Chitika, the reason behind it is that iPhone users are more active internet users.

For the last 1 year, Apple posted a $40.13 billion net income and $148.81 billion revenue. It had posted a net profit margin of +26.97% and operating margin of +35.62%. There was also a 41.16% sales growth during the recent 5 years. Apple was +74.55% ahead of its 52-week low while trailing -10.44% behind its 52-week high price. However, its 1.2% share price volatility had remained stable.

With more than 5 million iPhone 5 units sold when Apple started selling in September, iPhone 5 is now regarded as the quickest selling cell phone of all time. But analysts projected the sales to be from 7 to 10 million units on its 1st weekend. This also caused the stock market price of Apple to dip by 10% which is translated to some $60 billion market capitalization. The culprit is iPhone 5’s anodized aluminum chassis which is reported to be easily scratched. However, the decline in number of units is reported to be due to Apple’s inability to keep up with the demand. Bloomberg said that the supply issue is caused by Foxconn’s quality control crackdown to minimize the scratches issue. Foxconn is Apple’s chassis maker and assembler in China.

When asked about the issue, Apple was reported to be saying that the scuffs and scratches are normal. Without publicly admitting iPhone 5’s flaw, it has however asked Foxconn to guarantee that all the units are shipped in perfect condition. Nevertheless, ensuring top-of-the-line quality control is just a temporary solution because the units may be shipped in perfect condition but may still be easily scratched because of daily use.

Foxconn is now instituting tighter quality control. Because of this, there’s a shortage in aluminum chassis for all production lines of Foxconn to produce output. According to Bloomberg, Foxconn had even stopped its operation in some factories but the company was quick to deny it. Eventually, Apple and Foxconn will be able to resolve the anodized aluminum chassis issue but analysts still predict that Apple won’t be able to deliver a lot of units from September up to December.

iPhone 5 is believed to pressure Apple’s competitors. Sterne Agee analyst Shaw Wu is quoted into saying that demands for Apple phone can easily go up to 45 million before the year is over. Mark Moskowitz, a JP Morgan analyst, assumed that iPhone 5 will be able to drive an upgrade cycle for the next 18 months.