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. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Older iPhone Models Bolster Record Global Sales
Older iPhone Models Bolster Record Global Sales

By Adam Dickter
July 24, 2013 11:49AM

    Bookmark and Share
"Consumers have a lot more choices at the high end," said analyst Michael Levin. He added that increasing its customer base is a mixed blessing for Apple since newcomers tend to buy the cheaper models. "Previously, customers would upgrade or buy the top iPhone, and now a lot of first-time buyers are buying the legacy device rather than the flagship."
 

Related Topics

iPhone
Apple
Sales
mini iPad



Even with competitors swarming into the market with equal or better specs, Apple's iPhone continues to be a consumer favorite around the world, with record sales of more than 31 million in the quarter ending in June -- the highest ever for that period.

The iPhone continues to be Apple's most lucrative product, contributing strongly to the Cupertino, Calif.-based technology giant's $35.36 billion in revenue and $6.96 billion in net profit slightly better than Wall Street analysts' projections for the quarter.

Undercut by 4S

Analysts say the vibrant iPhone sales may largely be attributable to the sales of the discounted, penultimate device, the 4S, which is now available in emerging overseas markets.

In the U.S., the most recent iPhone, model 5, which was released last fall, amounted to slightly more than half of iPhone sales, according to surveys by the Chicago-based Consumer Intelligence Research Partners, which polls 500 consumers every quarter.

"The iPhone 5 hasn't done as well as the 4S," said Michael Levin, co-founder of CIRP. "At this point in its lifecycle, the 4S accounted for 70 percent of iPhone sales, while the 5 is at 52 percent."

Apple hasn't disclosed a breakdown of iPhone sales. But in an earnings call with analysts on Tuesday, CEO Tim Cook confirmed that overall sales of the iPhone 5 amounted to slightly more than half, according to a participant in the call.

Levin attributed the difference to increased competition from devices such as Samsung's Galaxy S 4 and new devices running the latest version of the BlackBerry and Windows operating systems.

"Consumers have a lot more choices at the high end," Levin told us. He added that increasing its customer base is a mixed blessing for Apple since newcomers tend to buy the cheaper models. "Previously, customers would upgrade or buy the top iPhone, and now a lot of first-time buyers are buying the legacy device rather than the flagship."

The basic model (16 gigabyte) iPhone5, which has a larger screen and access to long-term evolution, high-speed data, sells for $200 with a two-year voice and data contract. But the top wireless carriers are selling the 4S for $99 and giving away the iPhone 4 for free with a two-year contract. Lower revenue from the cheaper devices is already being seen in lower margins.

New Products Needed

Apple's third-quarter numbers were particularly encouraging given that it hasn't launched a major new product yet this year. But Apple, under CEO Tim Cook, clearly recognizes that it can't rest on its laurels for long. Speculation is rife that the company will refresh the iPad and iPhone lines soon with a variety of screen sizes. While the iPhone 5 is the first to increase the display from 3.5 inches to 4, The Wall Street Journal recently reported that Apple is looking at larger screens for the phones and smaller screens for tablets.

Apple already has the 7-inch iPad mini. But its biggest rival, Samsung, has a range of 27 screen sizes for its tablets and phones.

With a new iPhone on the horizon, Apple should be glad for the new customers incorporated into its ecosystem of the App Store, iTunes and iCloud, who may well be enticed to "generation skip" from the older models to the newest when their contracts are up.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Android 'Fake ID' Puts Millions at Risk
2.   FTC Wants Fix for Mobile Cramming
3.   Facebook To Force Use of Messenger
4.   BlackBerry Acquires Secusmart
5.   T-Mobile Calls 'BS' on AT&T Promo


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
FTC Wants Fix for Mobile Cramming
Overcharges are 'the perfect scam'.
Average Rating:
BlackBerry Acquires Secusmart
German security firm offers street cred.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

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 | CRM Systems | 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

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.