Analyst: iPhone 5 sales could hit 10M over weekend

The iPhone 5 hits stores in eight countries Friday at 8 a.m. local times, giving customers in Australia the first chance to buy the device, followed by those in Japan, Hong Kong, Singapore, France, Germany, the United Kingdom, Canada and the United States. With a new wireless contract, the device costs $199, $299 and $399 in the United States, depending on the amount of memory.

Pedro Mendez, 21, of Elmhurst, got in line at Apple's flagship store on Fifth Avenue in New York on Tuesday, Sept. 18, to make sure he'd get the new phone. The next day there were about 16 people on line with him.

"It's something you have to do," said Mendez, who plans to sell his iPhone 4S to a friend. "You stand in line, you see everyone the next day at school and talk about it."

The crowds reinforce estimates from analysts that the iPhone 5 will be the largest consumer-electronics debut in history. Apple may sell as many as 10 million iPhones during the weekend sales rush, according to Gene Munster, an analyst at Piper Jaffray Cos. Because Apple generates about two-thirds of its profit from the iPhone, a successful introduction is critical to fuel growth that has led investors to catapult the company, based in Cupertino, Calif., to the world's most valuable company.

"We've never seen anything like this before," said Andrew McAfee, principal research scientist at Massachusetts Institute of Technology's Center for Digital Business. "It used to be that with tech products the nerds got them, obsessed about them, and talked about them, and the cool kids wanted no part of that conversation. That's just not true anymore."

The new iPhone has a bigger screen, lightweight body design and faster microprocessor, and is compatible with speedier wireless networks. Software upgrades include new mapping and turn-by-turn navigation features.

Technology gadget reviewers mostly praised the new device, especially for its swifter wireless speeds that improve Web browsing and other data-hungry tasks. One criticism was the new mapping features, which don't include details on how to navigate public transportation.

The lines around the world show how customers remain loyal to Apple once they buy one of its products, said Giri Cherukuri, a portfolio manager for Oakbrook Investments LLC, which owns Apple shares.

"The longer people are in the Apple ecosystem, the harder it is for them to switch away," he said.

To take advantage of the iPhone's popularity, some of the first to get in line were there for the publicity. Joseph Cruz, 19, said Gazelle.com offered to pay for his iPhone, along with four others in line in New York, if he agreed to wear the company's T-shirts and wrist bands.

"I've just got to wear this stuff for the whole week and they'll pay for my iPhone," he said. "I was going to stand out here regardless."