Digital Spy

Search Digital Spy
 

DS Forums

 
 

iPhone 5 selling at 50%


Reply
Thread Tools Search this Thread
Old 24-07-2013, 01:58
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934

Research showing that the iPhone 5 only selling as well as the 4 and 4s together. Not great news for the apple flagship, does it show consumers not willing to part with big money for little innovation or show it is time for the budget iPhone giving apple consumers what they seem to be asking for.

Important decisions ahead for team Cupertino perhaps.

allthingsd.com/20130722/consumers-still-buying-tons-of-older-iphones/
swordman is offline   Reply With Quote
Please sign in or register to remove this advertisement.
Old 24-07-2013, 02:04
IslandNiles
Forum Member
 
Join Date: Apr 2005
Posts: 12,829
Well, that's a rather negative spin (as expected).

The results have been announced:

http://www.bbc.co.uk/news/business-23428109

Apple sold 31.2m iPhones last quarter. So even if half of those were the iPhone 5, that's more than 15m. That's in its third quarter on sale. I'm not going to start comparing directly to the sales of other handsets that are earlier in their life cycle, but those are strong sales.
IslandNiles is offline   Reply With Quote
Old 24-07-2013, 02:53
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934
I think those results bear out what I have said above profits down, margins down and average selling price down. A bigger smartphone market means more phone sales but if you can't convince people to buy your flagship where the real money is it's a slippery slope.

Either people are happy with the low end apple products or maybe it's time for the multi coloured budget iPhone or apple need to produce something to convince consumers that shelling out top dollar on the latest apple smartphone is worth it.
swordman is offline   Reply With Quote
Old 24-07-2013, 03:04
Step666
Forum Member
 
Join Date: May 2012
Location: Scotland
Posts: 1,226
average selling price down
That's an industry-wide trend, there's been a marked drop in the average selling price of smartphones in general.
It's not necessarily bad news for Apple, provided they're prepared for it, either by releasing more competitively-priced devices or simply in accepting that if they wish to remain a premium brand they will lose market share.

In many ways it's worse for HTC and Blackberry as they have limited resources and geared their entire strategy around the top end of the market, with limited success for each of them.
Step666 is offline   Reply With Quote
Old 24-07-2013, 03:16
paulbrock
Forum Member
 
Join Date: Apr 2002
Location: Wapping, London
Posts: 15,847
Guardian reports that ipad sales dropped 15%. That's quite a drop for what I thought would be a massively growing market isn't it?

edit: according to this the tablet market nearly doubled worldwide over the last year...
http://www.independent.co.uk/life-st...e-8671640.html
paulbrock is offline Follow this poster on Twitter   Reply With Quote
Old 24-07-2013, 06:36
inkfinger
Forum Member
 
Join Date: Mar 2002
Location: Co Durham
Posts: 165
Guardian reports that ipad sales dropped 15%. That's quite a drop for what I thought would be a massively growing market isn't it?

edit: according to this the tablet market nearly doubled worldwide over the last year...
http://www.independent.co.uk/life-st...e-8671640.html
True, but in the same quarter last year, the iPad 3 hadn't long been released and would be selling like crazy. This year there hasn't been any new models yet, so things are bound to be slowing down.

Mind you that doesn't seem to have harmed iPhone sales!
inkfinger is offline   Reply With Quote
Old 24-07-2013, 07:33
Everything Goes
Forum Member
 
Join Date: Mar 2002
Location: In the future....
Posts: 9,572
There seems to be little enthusiasm for the more expensive iPhone 5. Why pay a premium for a slightly bigger screen that you would be hard pushed to tell the difference from the 4 or 4S. If anything the elongated iPhone 5 screen appears deceptively smaller than its predecessors.
Everything Goes is offline   Reply With Quote
Old 24-07-2013, 07:54
kidspud
Forum Member
 
Join Date: May 2010
Posts: 5,261
There seems to be little enthusiasm for the more expensive iPhone 5. Why pay a premium for a slightly bigger screen that you would be hard pushed to tell the difference from the 4 or 4S. If anything the elongated iPhone 5 screen appears deceptively smaller than its predecessors.
How many iPhone 5 in total have been sold?

Edit: Research is suggesting 55-60 million units, so I guess it depends on your definition of "little enthusiasm".
kidspud is online now   Reply With Quote
Old 24-07-2013, 08:31
Everything Goes
Forum Member
 
Join Date: Mar 2002
Location: In the future....
Posts: 9,572
How many iPhone 5 in total have been sold?

Edit: Research is suggesting 55-60 million units, so I guess it depends on your definition of "little enthusiasm".
Not as much enthusiasm as there should be about their flagship product. It should be doing much better than it is. Its a flagging flagship
Everything Goes is offline   Reply With Quote
Old 24-07-2013, 09:22
IslandNiles
Forum Member
 
Join Date: Apr 2005
Posts: 12,829
Guardian reports that ipad sales dropped 15%. That's quite a drop for what I thought would be a massively growing market isn't it?

edit: according to this the tablet market nearly doubled worldwide over the last year...
http://www.independent.co.uk/life-st...e-8671640.html
I agree with that. The drop-off in iPad sales should be be worrying for Apple. They've made a bit of a mess of their product cycle, in my view. We're more than halfway through 2013 and, other than some minor changes to the Macs, they haven't released any new products.

Have to disagree with some other posters re iPhone sales though. That's the strongest part of the report for Apple!
IslandNiles is offline   Reply With Quote
Old 24-07-2013, 10:22
Quackers
Forum Member
 
Join Date: Nov 2001
Location: Staffordshire
Posts: 4,584
It does not surprise me, iPhones have always had a premium, but some of the offers on the older models have been so low in the last few months who would not be tempted? Just last week T-Mobile had the iPhone 4 for free on a 15.50 a month tariff. The best you could get on that a year ago was a free cheap, slow, plastic Samsung Galaxy Y. They have sold 5 million more iPhones this period compared to the same last year and i bet its down to the price of a free iPhone with a contract is now in a sweeter spot for many.
Quackers is offline   Reply With Quote
Old 24-07-2013, 10:28
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934
IPhones always are though, you need look at the sales figures and the actual information behind them. Any company selling three products of which its flagship big earner is only accounting for half of those sales needs to rethink is strategy.

It may be Apple need to become more of a budget brand in relation to the iPhone if this is what is customers are asking for. Perhaps trying to compete at the upper end of the market is a mistake and making iPhones to a budget would provide better revenue streams.
swordman is offline   Reply With Quote
Old 24-07-2013, 11:27
kidspud
Forum Member
 
Join Date: May 2010
Posts: 5,261
IPhones always are though, you need look at the sales figures and the actual information behind them. Any company selling three products of which its flagship big earner is only accounting for half of those sales needs to rethink is strategy.

It may be Apple need to become more of a budget brand in relation to the iPhone if this is what is customers are asking for. Perhaps trying to compete at the upper end of the market is a mistake and making iPhones to a budget would provide better revenue streams.
Apple doesn't sell just 3 products and to suggest that a good business strategy would be to rely on a single premium product accounting for the vast majority of sales would be a far more risky strategy.
kidspud is online now   Reply With Quote
Old 24-07-2013, 11:47
calico_pie
Forum Member
 
Join Date: Oct 2012
Posts: 6,370
Research showing that the iPhone 5 only selling as well as the 4 and 4s together. Not great news for the apple flagship, does it show consumers not willing to part with big money for little innovation or show it is time for the budget iPhone giving apple consumers what they seem to be asking for.

Important decisions ahead for team Cupertino perhaps.

allthingsd.com/20130722/consumers-still-buying-tons-of-older-iphones/
Research showing that the current models of smartphones not selling as well as previous models. Not great news for the latest phones, does it show consumers not willing to part with big money for little innovation or show it is time for other models.

Important decisions ahead for smartphone manufacturers.

As should be obvious, its an industry wide trend.

Chances are in a year or two, there will be an upward spike again, as more owners with phones 2-3 years old upgrade.

But hey - making it all about Apple is much more fun, huh?

And even then, if you're losing sales to other iPhone models, and still raking in tens of billions of dollars, exceeding expectations, then you have to put quite a bit of spin on it to make it sound that gloomy.
calico_pie is online now   Reply With Quote
Old 24-07-2013, 11:57
-GONZO-
Forum Member
 
Join Date: Dec 2005
Location: Kent
Posts: 7,960

Chances are in a year or two, there will be an upward spike again, as more owners with phones 2-3 years old upgrade.
To me this does make some sense as my wife wants an iPhone 5 but her current contract doesn't end until the end of next month.
The same will apply for myself with my next phone which if I do decide to stick with iPhone then it won't be for another 2 years which will mean I'm likely to bypass the 6th and 7th generation of iPhones.
-GONZO- is offline   Reply With Quote
Old 24-07-2013, 12:00
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934
Apple doesn't sell just 3 products and to suggest that a good business strategy would be to rely on a single premium product accounting for the vast majority of sales would be a far more risky strategy.
In the context of this forum and thread it is three products not sure how any other product is relevant here or is this just you being your usual pedantic self.

The fact remains that flagships are were the money is made little profit is made through the 4s. So to ignore the realities and imagine a company can chug along selling mainly old models is very foolish.
swordman is offline   Reply With Quote
Old 24-07-2013, 12:04
Zack06
Forum Member
 
Join Date: Aug 2009
Posts: 27,135
This really isn't that surprising. In any case, they are worrying figures for Apple, sales slumps all round is never a good sign, especially for flagship models. Definitely a sign that Apple's once iron grip on the market is now well and truly over.
Zack06 is offline   Reply With Quote
Old 24-07-2013, 12:17
kidspud
Forum Member
 
Join Date: May 2010
Posts: 5,261
In the context of this forum and thread it is three products not sure how any other product is relevant here or is this just you being your usual pedantic self.

The fact remains that flagships are were the money is made little profit is made through the 4s. So to ignore the realities and imagine a company can chug along selling mainly old models is very foolish.
I'm not being pedantic at all, I was stating fact.

And I'll ask you, do you think it is a great business strategy to rely on a single premium product or a portfolio of products?

I didn't know what apple make their money on, but it does seem they have sold around 55m-60m iPhone 5 in 9 months.
kidspud is online now   Reply With Quote
Old 24-07-2013, 12:24
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934
Research showing that the current models of smartphones not selling as well as previous models. Not great news for the latest phones, does it show consumers not willing to part with big money for little innovation or show it is time for other models.

Important decisions ahead for smartphone manufacturers.

As should be obvious, its an industry wide trend.

Chances are in a year or two, there will be an upward spike again, as more owners with phones 2-3 years old upgrade.

But hey - making it all about Apple is much more fun, huh?

And even then, if you're losing sales to other iPhone models, and still raking in tens of billions of dollars, exceeding expectations, then you have to put quite a bit of spin on it to make it sound that gloomy.
Where do you get all this information from industry wide trend, sales spikes in couple of years, selling old phones is good ... amazing.

It doesn't surprise me that you think there is no concern in this report at all. In fact things never looked so good for youi imagine.
swordman is offline   Reply With Quote
Old 24-07-2013, 12:28
swordman
Forum Member
 
Join Date: Oct 2010
Posts: 5,934
I'm not being pedantic at all, I was stating fact.

And I'll ask you, do you think it is a great business strategy to rely on a single premium product or a portfolio of products?

I didn't know what apple make their money on, but it does seem they have sold around 55m-60m iPhone 5 in 9 months.
Always been your problem that you don't seem to be able to look past actual figures and the story contained in there.

That very strategy has worked well for Apple previously has it not but as I s aid they may have to aim there sights lower in the market now.
swordman is offline   Reply With Quote
Old 24-07-2013, 12:33
calico_pie
Forum Member
 
Join Date: Oct 2012
Posts: 6,370
Where do you get all this information from industry wide trend, sales spikes in couple of years, selling old phones is good ... amazing.

It doesn't surprise me that you think there is no concern in this report at all. In fact things never looked so good for youi imagine.
Well, certainly in the west, sales of smartphones are slowing down.

Is The Wall Street Journal a good enough source for you?

Five or six years ago no-one had a smartphone, so obviously sales took off pretty quickly. Initially with the first adopters, then by the time the 3GS came out, it was a much better product, and sales increased exponentially.

By 2010 Samsung were selling shedloads too, and by 2012 the smartphone market (in the west at least) was becoming saturated.

In recent months, both Apple and Samsung had have relatively disappointing sales of the iPhone 5 and S4.

But is shouldn't really be surprising to anyone who didn't expect sales to keep increasing at such high rates in perpetuity.

If it is of concern, then that concern is based on wholly unrealistic long term expectations.

Out of interest, if you have no interest in Apple, is there a reason you post so much about them?
calico_pie is online now   Reply With Quote
Old 24-07-2013, 12:35
kidspud
Forum Member
 
Join Date: May 2010
Posts: 5,261
Always been your problem that you don't seem to be able to look past actual figures and the story contained in there.

That very strategy has worked well for Apple previously has it not but as I s aid they may have to aim there sights lower in the market now.
So they may have to do the same that they have done in every other market they are involved in.

Yeah, I think you're right.
kidspud is online now   Reply With Quote
Old 24-07-2013, 12:36
calico_pie
Forum Member
 
Join Date: Oct 2012
Posts: 6,370
Always been your problem that you don't seem to be able to look past actual figures and the story contained in there.

That very strategy has worked well for Apple previously has it not but as I s aid they may have to aim there sights lower in the market now.
Apple's flagship product is the iPhone.

The iPhone is selling more than ever.

As a strategy, its not doing too badly.

If the 5S is comparable to the 5 in terms of sales, I wouldn't be surprised if there was an upward spike next year when a lot of iPhone 4 / 4S owners upgrade.

And similarly future Samsung models when S3 owners upgrade.

All of which seems to be based on perfectly sound common sense.
calico_pie is online now   Reply With Quote
Old 24-07-2013, 12:39
Viridiana
Forum Member
 
Join Date: Jan 2007
Posts: 7,469
I'm always baffled why people are so obsessed by Apple's numbers, and want desperately for it to fail. It's just super childish. People seem to forget that for years and years Apple did not dominate the market in anything. I still remember a time when the fact that i had a Mac computer was regarded as an oddity and absolutely nothing was compatible with the damn thing.


I love Apple products but I couldn't care less if there's a slump in the sales.
There are days when the only phone I ever see on public transport is the Iphone and without any exaggeration everyone i know owns an Iphone. Why would i care if everyone decided to buy other products? I do not share Apple's profits.
Viridiana is online now   Reply With Quote
Old 24-07-2013, 12:45
calico_pie
Forum Member
 
Join Date: Oct 2012
Posts: 6,370
In other news, my dad's bigger than your dad nah-nah-nah-nah-nah!

calico_pie is online now   Reply With Quote
 
Reply



Thread Tools Search this Thread
Search this Thread:

Advanced Search

 
Forum Jump


All times are GMT +1. The time now is 13:14.