iPhone 5 Pre-Orders Top Two Million, Confirm Supply Shortage

Apple AAPL has announced that the iPhone 5 has been pre-ordered by more than two million eager consumers, breaking the previous record set by the iPhone 4S by more than one million units. The company announced that iPhone 5 demand has exceeded the "initial supply." Consequently, some customers will not receive Apple's newest smartphone until October. "iPhone 5 pre-orders have shattered the previous record held by iPhone 4S and the customer response to iPhone 5 has been phenomenal," Philip Schiller, Apple's senior vice president of Worldwide Marketing, said in a company release. "iPhone 5 is the best iPhone yet, the most beautiful product we've ever made, and we hope customers love it as much as we do." Earlier this morning, AT&T T announced that it had sold more iPhone 5 pre-orders than any previous model, including the iPhone 4S. The company neglected to provide any specific sales figures, but Apple's announcement is beginning to put things into perspective. If the iPhone 5 sales demand is on par with the number of pre-orders, Apple could have the potential to beat the quarterly sales record set by the iPhone 4S. That may not be possible, however, if the company cannot produce a large number of devices. In the months and weeks leading up to its unveiling, the iPhone 5 was expected to be in short supply. Numerous reports suggested that the smartphone's new in-cell display is at the source of the problem, as it is more difficult to manufacture than traditional touch panels. Apple was expected to unveil an iPhone that was radically different from its predecessors last week. Instead, the company took a more conservative approach to iPhone development, producing a device that was slightly longer and thinner than the iPhone 4S. Consumers may not care, however. Late-night talk show host Jimmy Kimmel recently conducted an experiment to see how people would respond if they were told that the 11-month-old iPhone 4S was actually the iPhone 5. Their amusing reactions have garnered more than eight million views on YouTube since the video was posted on September 13. During the segment, everyday consumers reported that the device is lighter, thinner, and faster than the iPhone 4S (even the phone Kimmel gave them was, in fact, an iPhone 4S). Follow me @LouisBedigianBZ