iPhone 4 remains top-selling US smartphone despite growing iPhone 5 hype
Even as rumors of Apple's fifth-generation iPhone persist ahead of an anticipated launch, sales of the iPhone 4, first released in 2010, reportedly continue to top the competition at both AT&T and Verizon.
Analyst T. Michael Walkley with Canaccord Genuity revealed in a note to investors on Tuesday that checks with U.S. carriers indicate that sales of the iPhone 4 remain on top ahead of the iPhone 5 debut, despite the fact that the iPhone 4 is more than a year old.
"Our checks indicated strong sales of the iPhone 4, as it remained the top selling smartphone at AT&T and Verizon despite increasing consumer expectations for the iPhone 5 launch," he wrote.
"During the holiday season, we anticipate strong sales of the iPhone 5, as we anticipate a strong global launch with increased distribution to new carriers including Sprint in the U.S. market."
Walkley's research found that the iPhone 4 remained the top-selling handset at both AT&T and Verizon in August. In addition, the $50 entry-level $50 iPhone 3GS was the second strongest selling handset at AT&T. Verizon does not offer the iPhone 3GS.
The iPhone 4 and iPhone 3GS beat out the $200 Samsung Infuse 4G, which was the third-best selling handset at AT&T. And at Verizon, the Samsung Charge 4G came in second, while the HTC Thunderbolt 4G was third.
"While Motorola Mobility and RIM enjoyed stronger sell-through trends in 2010, our (first half of calendar 2011) checks indicate a clear trend toward increasing share for Apple, HTC and Samsung," Walkley wrote.
In addition to strong sales of the iPhone 4, he also found that the 3G-capable iPad 2 is the top-selling tablet at both AT&T and Verizon, which are the only two carriers that offer the iPad in the U.S.
Walkley's expectation that the so-called "iPhone 5" will be available on Sprint in addition to AT&T and Verizon stems from a rumor that surfaced last month. The Wall Street Journal cited anonymous sources who revealed America's third-largest carrier would gain access to the nation's best-selling smartphone.
His findings reaffirm what Walkley found earlier this year, in May, when checks with carriers found that the iPhone 3GS, despite first being released in 2009, continues to outsell newer Android devices. In addition, he found at the time that the first-generation iPad at Verizon was outselling many Android-powered tablets.
Based on strong sales of the iPhone 4 and continued momentum expected with the launch of Apple's next-generation handset, Canaccord Genuity has raised its price target for AAPL stock to $545, from $515.
"Based on solid demand trends for iPhone/iPad, poor sell-through trends for competing tablet offerings, and the ramping iOS ecosystem driving longer-term replacement sales, we believe Apple will maintain dominant value share of both the tablet and smartphone markets to drive healthy long-term earnings growth," Walkley said.
Analyst T. Michael Walkley with Canaccord Genuity revealed in a note to investors on Tuesday that checks with U.S. carriers indicate that sales of the iPhone 4 remain on top ahead of the iPhone 5 debut, despite the fact that the iPhone 4 is more than a year old.
"Our checks indicated strong sales of the iPhone 4, as it remained the top selling smartphone at AT&T and Verizon despite increasing consumer expectations for the iPhone 5 launch," he wrote.
"During the holiday season, we anticipate strong sales of the iPhone 5, as we anticipate a strong global launch with increased distribution to new carriers including Sprint in the U.S. market."
Walkley's research found that the iPhone 4 remained the top-selling handset at both AT&T and Verizon in August. In addition, the $50 entry-level $50 iPhone 3GS was the second strongest selling handset at AT&T. Verizon does not offer the iPhone 3GS.
The iPhone 4 and iPhone 3GS beat out the $200 Samsung Infuse 4G, which was the third-best selling handset at AT&T. And at Verizon, the Samsung Charge 4G came in second, while the HTC Thunderbolt 4G was third.
"While Motorola Mobility and RIM enjoyed stronger sell-through trends in 2010, our (first half of calendar 2011) checks indicate a clear trend toward increasing share for Apple, HTC and Samsung," Walkley wrote.
In addition to strong sales of the iPhone 4, he also found that the 3G-capable iPad 2 is the top-selling tablet at both AT&T and Verizon, which are the only two carriers that offer the iPad in the U.S.
Walkley's expectation that the so-called "iPhone 5" will be available on Sprint in addition to AT&T and Verizon stems from a rumor that surfaced last month. The Wall Street Journal cited anonymous sources who revealed America's third-largest carrier would gain access to the nation's best-selling smartphone.
His findings reaffirm what Walkley found earlier this year, in May, when checks with carriers found that the iPhone 3GS, despite first being released in 2009, continues to outsell newer Android devices. In addition, he found at the time that the first-generation iPad at Verizon was outselling many Android-powered tablets.
Based on strong sales of the iPhone 4 and continued momentum expected with the launch of Apple's next-generation handset, Canaccord Genuity has raised its price target for AAPL stock to $545, from $515.
"Based on solid demand trends for iPhone/iPad, poor sell-through trends for competing tablet offerings, and the ramping iOS ecosystem driving longer-term replacement sales, we believe Apple will maintain dominant value share of both the tablet and smartphone markets to drive healthy long-term earnings growth," Walkley said.
Comments
Analyst?
...we anticipate?
Uh, unless you're drunk and think you work for Apple, Mr. Analyst, you have absolutely no right no authority to say "we" in your predictions.
Though analysts being drunk and thinking they actually work for the companies on which they're reporting makes a LOT of sense when put into context of what analysts have said over the years. They think they work for Apple, so they think that what they're predicting is fact that they read on some company internal document (that was actually a dirty napkin they found in their apartment while drunk).
Uh, unless you're drunk and think you work for Apple, Mr. Analyst, you have absolutely no right no authority to say "we" in your predictions.
I think the 'we' could refer to the company he represents, Canaccord Genuity.
Most people don't read tech news sites. There is little iPhone 5 hype outside of that. When people want a phone, they go to the store and see what's available. They don't read the rumors sites to see what's coming down the pipe, nor do they care. They know a better one will come eventually, but they want a phone today.
I read tech news sites like this one. Yet, I am very happy with my iPhone 4. I see no real need to upgrade. If only AT&T would cut the amount of my monthly bill after the iPhone goes out of contract, I would keep my iPhone 4 for a long long time. But, since they are not going to, I will upgrade as soon as I am eligible, just to get the discounted price for the iPhone 5.
For these reasons I think it will be even more popular than the 3GS. If the screen size remains unchained in iP5, it would almost not even feel like you are getting an "old" device, especially to someone who does not care about gaming (the one area where A5 can be shown to be clearly superior to the "naked" eye).
I read tech news sites like this one. Yet, I am very happy with my iPhone 4. I see no real need to upgrade. If only AT&T would cut the amount of my monthly bill after the iPhone goes out of contract, I would keep my iPhone 4 for a long long time. But, since they are not going to, I will upgrade as soon as I am eligible, just to get the discounted price for the iPhone 5.
And this is the thinking of most people.
Very few customers "hold out" for a device once they can upgrade. In fact, it's a common misconception among customers that they'll "lose" the upgrade if they wait too long (a misconception that shady dealers will encourage). On verizon, customers held out for an iphone, but that's because they WANTED an iphone (of any model). If the 3Gs came out when ATT had a iPhone4, a LOT of those customers would buy the 3GS because it was an iphone and they had the upgrade.
Think about it, when the iphone4 finally came to verizon a lot of people thought it wouldn't sell well, because the iphone5 was just around the corner. But it sold well. Why? because people could upgrade and they wanted a new toy TODAY.
The best stat is how well 3GS is doing. If I remember correctly iPhone 4 was the first iPhone with A X chipset, which is a pretty beastly chipset compared to previous (ARM?) designs that apple was using. It has the retina display. It runs iOS 5 without any hiccups.
For these reasons I think it will be even more popular than the 3GS. If the screen size remains unchained in iP5, it would almost not even feel like you are getting an "old" device, especially to someone who does not care about gaming (the one area where A5 can be shown to be clearly superior to the "naked" eye).
Yes, it's the first one we were told about with the A# designation. However, both the iPhone 3GS and iPhone 4 both use ARMv7 Cortex-A8 chips which are worlds above the previous ARMv6 ARM11 chips used in the original iPhone and iPhone 3G.
Yes, it's the first one we were told about with the A# designation. However, both the iPhone 3GS and iPhone 4 both use ARMv7 Cortex-A8 chips which are worlds above the previous ARMv6 ARM11 chips used in the original iPhone and iPhone 3G.
Bad on me, I could have sworn iPhone 4 felt faster. Maybe there is some other reason for that.
http://www.forbes.com/sites/canaccor...-at-canaccord/
iPhone 5 on Sprint will eliminate another safe haven for Android in the US. I wonder if we will see the iPhone on T-mobile...
Wow I just had a crazy idea. Picture this. Apple buys T-Mobile. Now, they don't care about voice, so they drop that, and turn the frequency into LTE only spectrum. Now you can buy iPod touch and iPad and use that spectrum for LTE (paying fees directly to apple). Maybe even release an iPhone for that spectrum (though I don't know if T-mo could handle that). It will be super fast and reasonably priced. It will also never happen, but man would that be awesome.
Edit: the name of the new carrier will be Apple Tea!
Bad on me, I could have sworn iPhone 4 felt faster. Maybe there is some other reason for that.
The A4 chip on the iPhone 4 runs at a higher clock rate than the Samsung S5PC100 chip on iPhone 3GS. The A4 has more integration as an SoC, more memory, and much better graphics, all of which contributes to better performance on the iPhone 4.
Bad on me, I could have sworn iPhone 4 felt faster. Maybe there is some other reason for that.
What cvaldes1831 said. I was just pointing out the CPU architecture, not the other aspects of the PoP/SoC.
iPhone
Huge advantage having only one phone with one product name year after year. Numbers change but it it always an iPhone. Great marketing.
All iPhone fans make the same recommendation to their friends. HTC / Samsung / Droid fans all have a different favorite device.
When you go shopping for providers, you do not see much in the way of top line constants in android phones. Now you have two big companies with the same iPhone, once there are more, the one phone choice will have an even bigger impact on consumers.
Even if Samsung take over from Apple in total smart phone sales, iPhone will still be the biggest selling device and that has huge influence on someone new to the market.
This is the genius of Steve Jobs.
The A4 chip on the iPhone 4 runs at a higher clock rate than the Samsung S5PC100 chip on iPhone 3GS. The A4 has more integration as an SoC, more memory, and much better graphics, all of which contributes to better performance on the iPhone 4.
In the keynote introducing the A4 (?) chip, I believe the graphics performance is what the presenters were emphasizing (I vaguely remember claims of it being 9 times faster).
In the keynote introducing the A4 (?) chip, I believe the graphics performance is what the presenters were emphasizing (I vaguely remember claims of it being 9 times faster).
Was that the A4 or A5? I was thinking it was the A5 but I think that each could be 9x faster than before. I'll check the special events…
edit: edit 2: It's arguably still the first dual-core tablet to ship in volume.
Was that the A4 or A5? I was thinking it was the A5 but I think that each could be 9x faster than before. I'll check the special events...
It was the A5. I thought that sounded incorrect, myself.
I read tech news sites like this one. Yet, I am very happy with my iPhone 4. I see no real need to upgrade. If only AT&T would cut the amount of my monthly bill after the iPhone goes out of contract, I would keep my iPhone 4 for a long long time. But, since they are not going to, I will upgrade as soon as I am eligible, just to get the discounted price for the iPhone 5.
Yes with the cost of operation no less if you own your phone, there is little point in not upgrading to the latest.
My 8 month old well used iPhone 4 is still surprising me with it's many capabilities. I'm not concerned about keeping it for the 2y3m left in my contract. I expect by then the iPhone 6 will be out and proven, so I'll accept my carriers "gift" of a free new iPhone to continue my contract for another term.
My current iPhone 4 is promised to a family member for use as a simple phone plus all the other functions it is capable of.
...8 month old? ?2y3m left?
Lord have mercy on your three-year sentence?
Samsung Charge, Samsung Galaxy, Samsung Epic, Samsung Vibrant, HTC Thunderbolt, HTC Evo, HTC Sensation, HTC myTouch (plus another 10 or more on sale in the US)
iPhone
Huge advantage having only one phone with one product name year after year. Numbers change but it it always an iPhone. Great marketing.
This is the genius of Steve Jobs.
Definitely, having only one iPhone with regards to function, with only a storage difference size decision, makes for a much easier consumer decision.
The others present a confusing collection of different phones. RIM now in survival mode has even added to it's already too large a collection of models.
May Apple continue to KISS the iPhone.