Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Apple Fans Fret that iPhone
Apple Fans Fret that iPhone's Lost Its Luster

By Adam Dickter
January 24, 2013 2:32PM

    Bookmark and Share
"The slowed growth does signify that Apple's [iPhone] shipments are becoming increasingly dependent on replacements and upgrades and less so on finding new customers," said analyst Mike Morgan. "It is difficult to capture new customers from those that are loyal to other platforms such as Android, and this will only get worse" for Apple's iPhone.
 



Apple's eagerly awaited fourth-quarter earnings report seems to have confirmed what many analysts see as a problem in Cupertino, as the iPhone starts to show signs of consumer fatigue. The technology giant, still easily one of the world's most profitable companies, sold 47.8 million smartphones in the quarter, less than the average Wall Street projections as reported by the financial press, though still up 28 percent from the same quarter last year, when 37 million were sold.

The iPhone 5 was released in September with a larger screen size, better camera and faster processor, but perhaps lacking enough virtual bells and whistles to go head-to-head with an army of rivals including Samsung's leading device, the Galaxy S III. News of Apple's supposed component-order reductions earlier this month created worry in advance of the earnings.

More iPads, Fewer Macs

In other good and bad news, the company saw record sales of its iPad tablets, 22.9 million, up year-over-year from 15.4 million, but sold about a million less of what was once its signature product: Mac computers fell from 5.2 million units to 4.1 million. Record profit for the quarter was a not-too-shabby $13.1 billion, indicating no short-term problem.

"We're pleased to have generated over $23 billion in cash flow from operations during the quarter," CFO Peter Oppenheimer said in Apple's earnings statement. "We're very confident in our product pipeline as we continue to focus on innovation and making the best products in the world."

But there's no denying that to keep on top of its game Apple needs to keep iPhone users from defecting to Android, Windows Phone 8 or BlackBerry 10 while at the same time picking up new smartphone customers in the remaining emerging markets. Investors showed their concern by deflating Apple's share price 11 percent on Thursday when the results were released.

Mike Morgan, senior mobile devices analyst at ABI Research, told us the iPhone sales represent "a respectable showing."

"Apple was able to keep its mix of new versus old in line with previous launch quarters, which implies that its latest device has added enough meaningful technology to meet the needs of those looking to upgrade to the latest version," Morgan said.

But Morgan noted that total iPhone shipments for the year show that Apple growth slowed to 46 percent, down from 96 percent in 2011.

"The slowed growth does signify that Apple's shipments are becoming increasingly dependent on replacements and upgrades and less so on finding new customers. It is difficult to capture new customers from those that are loyal to other platforms such as Android, and this will only get worse as Android OEMs continue to improve the devices they are making," he said.

Unfilled Shoes?

Consultant Rob Enderle of the Enderle Group told us that without a complete picture of supply, demand and the realism of analyst estimates for the quarter, "you can't determine whether it is a transitory problem or a trend. However the decline in margins is clearly a trend and the rate of decline appears significant."

He sees Apple plagued with the unique problem of having needed to replace, in the late Steve Jobs, "a CEO who has created and driven a very unique company but avoided training a successor for fear they would actually succeed" in replacing him.
 

Tell Us What You Think
Comment:

Name:

tims:

Posted: 2013-01-31 @ 3:17pm PT
Nonsense on iPhone.

At&T and Verizon reported that iPhone accounted for 85% and 65% of total activations in the Dec. quarter. That means that Android is seeing a lot of defections.

It is impossible for those kinds of percentages (which are shockingly high) to come from new smartphone users (the market is not grwing anywhere near that much) or iPhone owners upgrading. Obviously I don't have the actual figures of how many defections there were but I can't see how you get to 85 out of 100 ATT activations being iPhones without a material portion of those coming from other smartphones.

More Power Scotty:

Posted: 2013-01-24 @ 10:22pm PT
I love my Apple products for the most part... but c'mon Apple... you've got to do something about the ridiculously short battery life on the iPhone and MacBook Air.

How is it possible that a phone can be so popular and not be able to hold a charge for even a full day? Not to mention how pathetic it is that my MacBook Air can barely last until lunchtime.

I mean, these are supposed to be WIRELESS, PORTABLE products, Apple. What gives????

Pete W:

Posted: 2013-01-24 @ 10:17pm PT
If you read all the comments about people wanting to switch from Windows 8 to Apple, you'll see that Apple's going to be getting a whole lot of new users REAL soon!

Apple's Overrated:

Posted: 2013-01-24 @ 10:13pm PT
I used to like Apple, but the more they keep bringing out new versions of the same old thing (iPhone 3, no 4, no 5).... and having the Apple fanboys hype it to death... the more I say Apple's going down.



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Mobile Tech
1.   Cortana Fills Windows Phone Gap
2.   Galaxy S5 Phone: Less Can Be More
3.   Beware: Facebook Shares Your Locale
4.   Android Gets Chrome Remote Desktop
5.   Amazon 3D Smartphone Pics Leaked


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Cortana Fills Windows Phone Gap
Siri-like virtual assistant has promise.
Average Rating:
Galaxy S5 Phone: Less Can Be More
Most formidable iPhone competitor yet.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.