More than 5 million units of the iPhone 5 were sold in the first three days, surpassing a record set last year by the previous model, the iPhone 4S, Cupertino, California-based Apple said today in a statement. Demand for the new handset exceeded the initial supply, Apple said.

A successful debut for the iPhone, responsible for about two-thirds of profit, is crucial to fueling the growth that transformed Apple from a niche computer maker into the world’s most valuable company. Demand for the iPhone 5, with a bigger screen and faster wireless speeds, gives Apple a boost over rivals including Samsung Electronics Co. (005930) that use Google Inc. (GOOG)’s Android mobile software.

“The number is lower than what people had expected,” said Brian White, an analyst at Topeka Capital Markets, in an interview. He had estimated debut weekend sales of 6 million to 6.5 million units. “This seems to be driven more by availability than demand.”

The shares fell 1.5 percent to $689.40 at 9:37 a.m. in New York. The stock had gained 73 percent this year.

“The story now with Apple is less about the gorgeous technology and more about if it can really execute the global supply,” saidJames Kelleher, an analyst at Argus Research, in an interview. “Can they get them to as many people as they want in the right amount of time?”

Gene Munster, an analyst at Piper Jaffray Cos. (PJC), had predicted Apple would sell as many as 10 million of the iPhone 5 during the opening weekend. Brian Marshall, an analyst at ISI Group, had anticipated sales of 6 million to 8 million phones.

Apple’s figure includes sales from wireless carriers, retail outlets, Apple stores and online orders that customers have received, Marshall said. It excludes early orders from Apple’s online store that haven’t been delivered, he said.

“Units in transit could be in the millions currently,” Marshall said in a research report today.

Natalie Kerris, an Apple spokeswoman, didn’t immediately respond to a request for comment. Early orders in Apple’s online store topped 2 million units in one day, Apple said on Sept. 17. The company said in the statement today that “while the majority of pre-orders have been shipped to customers, many are scheduled to be shipped in October.”

“Demand for iPhone 5 has been incredible and we are working hard to get an iPhone 5 into the hands of every customer who wants one as quickly as possible,” said Tim Cook, Apple’s chief executive officer, in the statement. “While we have sold out of our initial supply, stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date.”

Sales from the weekend will be included in Apple’s financial results for the fiscal fourth quarter, which ends Sept. 30. The company is expected to report profit of about $8.3 billion on sales of $36.1 billion, according to the average of analysts’ estimatescompiled by Bloomberg.

Besides the outsize screen and faster data speeds, the iPhone 5 comes with a more powerful microprocessor and lightweight body design. Software changes include new mapping and navigation features, a change Apple made to replace Google’s maps application. Some users and technology gadget reviewers have criticized the new navigation features.

In addition to the iPhone release, Apple also introduced a new version of its mobile operating system, called iOS 6. The update was downloaded by more than 100 million customers, Apple said. That compares with more than 25 million for the prior update, iOS 5, introduced last year.

That number of downloads for the latest software, “suggests reports of dissatisfaction with Apple’s new Maps application will not be a deterrent to adoption,” Marshall said.

The iPhone 5 went on sale Sept. 21 in the U.S., Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the U.K. It will be in 22 more countries on Sept. 28. Apple plans to have the iPhone in more than 100 countries by the end of the year, the fastest introduction in the company’s history.

To contact the reporters on this story: Ryan Faughnder in New York atrfaughnder@bloomberg.net; Adam Satariano in San Francisco atasatariano1@bloomberg.net

To contact the editor responsible for this story: Tom Giles attgiles5@bloomberg.net

The problem wasnt demand, it was supply. I know people who were desperately trying to get one over the weekend, but they were sold out everywhere

I was able to walk into my local AT&T store and pick one up on Saturday.  No waiting in line (besides waiting to be helped) and no preorder.

Walked by the Apple store during launch in Toronto and it was pandemonium... People waiting, laughing, crying(joy).

Then I went to best buy and no one was there buying iPhones. I asked them how come and they said that masses just don't want to buy iPhones from non Apple stores on day 1.

Apparently people who buy the iPhone on day 1 are in it for the "Apple" experience. Very cult like if you think about it...

Well I don't buy Apple products outside Apple Store... it's just the common and cheaper.

OP. EPICNESS. 

Apple's website promises shipments delivered in 3-4 weeks. The carriers -- AT&T, Verizon and Sprint -- offer similar shipment dates on their websites: 21 to 28 business days.

Did they fuck up with supply?

Still huge numbers.

Poor Vita. Heck, poor video game industry. We're screwed.

The iPhone 4S sold 4 million by it's first weekend. The iPhone 5 sold 5 million. However...

The iPhone 5 launched in more countries. And the iPhone 4S did not launch on carriers like Verizon or Sprint.

While theoretically speaking the iPhone 5 appears to be "selling better", given these facts the argument can be made that technically, the iPhone 5 is not selling better at all. More like equal or slightly under.

Then you were one of the lucky ones, I guess. 2 people I know in the UK went to 3 different shops and they were all sold out

iPhones are a lot like call of duty. It's just the same thing over and over but the second a new one comes out we all buy it anyway. Could this be a sign Black Ops 2 will also undersell?