So far when the new versions of the iPhone were being released, it hardly had any competition around its launch date. However, that doesn’t appear to be true for the launch of the iPhone 5 which is scheduled for the second week of September, probably the 12th of the month. By the release date, Apple is likely going to have around 15 million units in its inventory and that should be enough to cater to the initial demand for the popular smartphone. In addition, by the end of 2013, around 600 million customers will be freed from their contracts with operators and a majority of them are likely to go for the iPhone, according to research by Jeffries.
The demand for the iPhone is constantly on the rise and in fact it is this that has caused a decline in overall smartphone sales in the second quarter. While Apple’s sales fell because of the possible release of the new version, it appears that customers who are loyal to other manufacturers are also waiting for the iPhone to release before making a decision. This effect was profound in Europe and Asia and though the slump in the respective economies might have influenced the sales a bit, the iPhone too was a major factor.
Currently, Apple needs the new iPhone to sell fast and sell big once it is released particularly to stave off competition from the likes of the Samsung Galaxy SIII that is already on the market. If Apple has upgraded the iPhone 5 only by a bit with respect to the predecessor then it might have trouble as consumers were already shaken by the minor difference between the iPhone 4 and 4S. In addition, there are other manufacturers getting ready to release their flagship devices around the same time, which will inevitably compete with the iPhone. From the past, it can be seen that the price of the iPhone is quite high as soon as it releases and it easily tops most of the other devices in the high end market. That might not happen this time but the competition just might prove superior to the iPhone in several respects.
The iPhone 5 is speculated to have a larger screen, a more powerful processor and 4G LTE capabilities. If all this is true, it might become instantly popular and help Apple retain its grasp on the market.
August 20, 2012 at 9:22 am
In addition, by the end of 2013, around 600 million customers will be freed from their contracts with operators and a majority of them are likely to go for the iPhone, according to research by Jeffries.
Based on that number, “majority” means at least 301 million customers. You honestly believe that Apple will sell 300M+ iPhones by the end of 2013? It sounds ridiculous even for a hardcore Apple fanatic like myself. The iPhone 5 must be amazing and sell well.
Many of my friends, coworkers, and family have either already purchased the Samsung Galaxy S3 or are waiting to get one soon when their contracts expire. Hopefully Apple can achieve its goal of getting all Samsung phones banned after it wins the trial this week. The best offense against Android is a strong patent portfolio and great lawyers.