Apple stock is jumping because the iPhone 7 is exceeding expectations

Apple iPhone 7 release store queue

T-Mobile U.S. Inc. said that preorders for Apple’s iPhone 7 reach a record in the wireless carrier’s history.

Studio A, an Apple Premium Reseller that has 33 outlets in Taiwan, said that so far it has received five times the number of pre-orders that it obtained for the iPhone 6S a year ago when that model was released.

Two major American wireless carriers, Sprint and T-Mobile, announced on Tuesday that iPhone 7 presales were exceeding expectations. Patel, whose detailed review is worth reading in full, thinks that the new iPhone 7 and 7 Plus are “terrific phones”, but he also calls them “incomplete”. Also, customers who switch to Sprint can save half off the price of most Verizon (VZ), ATT (T) and T-Mobile standard rate plans, the company said.

The carriers’ reports contradict a survey released Monday that said iPhone 7 demand was down compared with the demand for the iPhone 6 past year. “The entire time I was using the iPhone 7, I felt like I had a prototype of next year’s rumored drastic iPhone redesign disguised as an iPhone 6”, Patel concludes.

Looks like Apple’s atypical decision to not reveal first-weekend presale numbers might not necessarily matter too much, even if it reportedly left certain investors anxious. That offer lets customers get an iPhone 7 handset for free if they trade in a paid-off iPhone 6 or 6S phone. If the supply numbers had improved this year as well, it’s highly likely that Apple would have disclosed them. Apple adopted a similar strategy with the release of its latest smartphone, the iPhone 7. But as we have expanded our distribution through carriers and resellers to hundreds of thousands of locations around the world, we are now at a point where we know before taking the first customer pre-order that we will sell out of iPhone 7. “With the iPhone 7, you seem even more hesitant”, he noted.

Apple quickly ran through its Upgrade Program pre-order inventory when sales started on September 9th.

The iPhone 7 already swaps the physical home button for a virtual one but leaves the traditional design to help ease the transition.