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iPhone 4S accounts for 90% of US iPhone sales, 42% of customers break contract to buy

post #1 of 48
Thread Starter 
Despite the customary price drop of Apple's last generation iPhone 4 and the free-on-contract iPhone 3GS, the company's newest handset dominated sales and has seen strong numbers not only from early adopters, but "conventional" smartphone users as well.

Citing a recent survey by Consumer Intelligence Research Partners, All Things D reports that since the debut of the iPhone 4S in October 2011, some 89 percent of all U.S. iPhone sales can be attributed to the newest Apple smartphone.

The CIRP survey shows that iPhone buyers weren't put off by the $399 price of the top-of-the-line 4S, which boasts up to 64 GB of storage, and reports that an impressive 21 percent opted for the highest capacity model while the 32 GB and 16 GB versions garnered 34 percent and 45 percent of sales, respectively.

A deeper look into the figures reveals that recent iPhone buyers are bucking the trend of waiting the two years for their current contracts to expire before buying the popular device, and suggest that a majority of 4S adopters bypass cheaper legacy models for the newer Siri-enabled device.

“An amazing 19 percent of all iPhone buyers upgraded from the iPhone 4, a phone barely a year old at the time of the launch," said CIRP co-founder Mike Levin. "Forty-two percent of iPhone buyers broke existing carrier contracts to get the new iPhone 4S. And 19 percent of these iPhone 4S buyers sold their old iPhone in the secondary market. Early upgrades, broken contracts, and selling used phones — all allow buyers to purchase the new iPhone 4S, when conventional wisdom suggests that these users would follow the two-year contract cycle, or at least purchase the cheaper models.”

The news comes on the heels of Apple's Q1 2012 earning's call on Tuesday, which outlined the company's best performance ever and the second best quarterly corporate performance in U.S. history.


Apple's newest 4S has dominated the overall iPhone market since its launch in October | Source: All Things D


Apple's newest handset has seen amazing success after a longer than usual product refresh cycle built up customer demand to unprecedented heights. Sales were so strong that CEO Tim Cook said during the after-earnings conference call that Apple failed to correctly gauge demand for the handset, and a "risky bet" in producing devices based on what was then considered high-side estimates was in fact too small.

The iPhone 4S rollout was the fastest in company history and the product line continues to set records for both Apple and mobile carriers such as AT&T's 2011 holiday quarter where the iPhone represented 80.8 percent of all smartphones activated. Verizon recorded 4.2 million iPhone activations which represented more than half of the number one U.S. carrier's smartphone sales.
post #2 of 48
"The new iPhone 4S is a total flop."
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post #3 of 48
Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.
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post #4 of 48
I want to know how many people were coming from Android phones. I lost track of all my friends that did just that. They were all fed up with the horrible Androud experience.

Funny that we haven't heard much of a peep from fandroids infesting AI since Apple's blowout performance. They rightfully should be ashamed for supporting such an inferior system simply because it's "open" or whatever spin they want to attach to it.

However, for the sake of tradition... APPLE IS DOOMED!
post #5 of 48
Looking at the average sale rate for the iPhone it's clear that most were 4Ses but I didn't think it would be that high.


Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

So Apple changed everything about the new iPhone except for the display and the casing yet you think that means there is nothing new about it? Object permanence is suppose to begin at age 2.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #6 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

Maybe just because they can. If you can sell the iPhone 4 for $300-400 on the secondary market, you pay $100 to early termination fee for the contract plus $200 for the 4S, you are at break even with a brand new phone. (all prices estimated for sake of discussion)

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post #7 of 48
Quote:
Originally Posted by mstone View Post

Maybe just because they can. If you can sell the iPhone 4 for $300-400 on the secondary market, you pay $100 to early termination fee for the contract plus $200 for the 4S, you are at break even with a brand new phone. (all prices estimated for sake of discussion)

Most early adopters of the iPhone 4 were able to buy the 4S right away or a month later. It's a way to get a new device that is better in almost all areas and not spend any money to do it.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #8 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

I sold my 16GB iPhone 4 for $350 and bought the higher capacity 32 GB 4S for $300. I did not have an early termination fee because I am the primary on my account and pay enough that I was given the incentive pricing.

So, I made $50 and now enjoy a MUCH better low light camera and higher res video. I am not a big SIRI user, so that wasn't a factor for me and I knew if from before buying the phone, but I basically got paid to have better pics and vids of my kids and more room to store them.
post #9 of 48
Quote:
Originally Posted by SolipsismX View Post

Looking at the average sale rate for the iPhone it's clear that most were 4Ses but I didn't think it would be that high.




So Apple changed everything about the new iPhone except for the display and the casing yet you think that means there is nothing new about it? Object permanence is suppose to begin at age 2.

I didn't slate the iPhone 4S, it's a fantastic handset, best on the market hands down.

If you've got a 3GS or below I'd fully understand the need to upgrade, those handsets are now starting to feel sluggish.
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post #10 of 48
Quote:
Originally Posted by AppleInsider View Post

The iPhone 4S rollout was the fastest in company history and the product line continues to set records for both Apple and mobile carriers such as AT&T's 2011 holiday quarter where the iPhone represented 80.8 percent of all smartphones activated. Verizon recorded 4.2 million iPhone activations which represented more over half of the number one U.S. carrier's smartphone sales.


Where is Slappy? Here, Slappy! Here Slappy!

Cat got your tongue, Slappy? What a guy, that Slappy.

I want to see what Slappy has to say about this!

Slappy will tell us that this PROVES that Apple is Doooooooommmmmmmmeeeeeeeddddddd!

Slappy! LOL!
post #11 of 48
Quote:
Originally Posted by SolipsismX View Post

Most early adopters of the iPhone 4 were able to buy the 4S right away or a month later. It's a way to get a new device that is better in almost all areas and not spend any money to do it.

Nice of Apple to only make cursory attempts to prevent jailbreaking. Most of those phones purchased on the secondary market are headed overseas to be jailbroken and sold on the street to the typical pay as you go customer.

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post #12 of 48
Quote:
Originally Posted by shippster View Post

I sold my 16GB iPhone 4 for $350 and bought the higher capacity 32 GB 4S for $300. I did not have an early termination fee because I am the primary on my account and pay enough that I was given the incentive pricing.

So, I made $50 and now enjoy a MUCH better low light camera and higher res video. I am not a big SIRI user, so that wasn't a factor for me and I knew if from before buying the phone, but I basically got paid to have better pics and vids of my kids and more room to store them.

Thanks, that actually makes sense. Couldn't work out why people would have paid to upgrade, but I'd in the US you could upgrade for free or actually make some money to upgrade then that makes sense.
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post #13 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

I upgraded... I handed down my iP4 to my daughter to replace her 3GS.

The iP4S is faster, better camera...

It's an easy choice.
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post #14 of 48
Quote:
Originally Posted by 8CoreWhore View Post

"The new iPhone 4S is a total flop."

Compared to the iPhone5
post #15 of 48
Quote:
Originally Posted by mstone View Post

Nice of Apple to only make cursory attempts to prevent jailbreaking. Most of those phones purchased on the secondary market are headed overseas to be jailbroken and sold on the street to the typical pay as you go customer.

1) I was surprised at how long it took for the 4S to get an untethered jailbreak.

2) I no longer have a need for JBing with iOS 5.x.


Quote:
Originally Posted by saarek View Post

Thanks, that actually makes sense. Couldn't work out why people would have paid to upgrade, but I'd in the US you could upgrade for free or actually make some money to upgrade then that makes sense.

Ah, I see, you weren't aware that 2 year contracts in the US can allow for much earlier buying of a new device at the upgrade price so long as you stay on that same carrier. I apologize for my previous comment.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #16 of 48
Is Siri driving this? Because I'll admit it is cool but I don't use it that often. Once I used it a couple times and got over the 'cool!' factor it's no big deal. I wonder how many people use it frequently?
post #17 of 48
Quote:
Originally Posted by 8CoreWhore View Post

"The new iPhone 4S is a total flop."

With the same horrible design that scratches and cracks like crazy that apparently people can't get enough of.
post #18 of 48
How could people be puzzled by this. Most of the sales were based on upgrades from 3G/3GS customers, of course they won't choose the old iPhone 4 just for $100 difference in price, it makes no sense.
post #19 of 48
Quote:
Originally Posted by SolipsismX View Post


1) I was surprised at how long it took for the 4S to get an untethered jailbreak.

2) I no longer have a need for JBing with iOS 5.x.


Well you still have to JB it if you want to run it on a carrier other than the one it is locked to regardless of OS version. I saw so many JB iPhone 3G and 3Gs in Central America last month. They are everywhere.

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post #20 of 48


What will be interesting...

Is when the carriers normalize their contracts to the iPhone release cycle -- when a new iPhone is released, you can upgrade with no (or deferred) ETF... as long as you stay within the carrier.

I think this has got to happen -- Likely, the next iPhone will be "universal" and available in reasonably-priced unlocked editions.

There is also an opportunity for a 3rd-party to sell contract-less iPhones -- combined with financing, insurance, upgrade, service/replacement.
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post #21 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

Right of the top, Siri, 64gb of storage. Faster, better camera, it got my wife off of her 3GS and gave my daughter an iPod(sim-less 3GS)

Finally, because I could. In all honesty, I don't tend to rationalize my purchases. I consider: Does it make sense for me? Will I use it? Can I afford it?
post #22 of 48
Quote:
Originally Posted by Eternal Emperor View Post

Right of the top, Siri, 64gb of storage. Faster, better camera, it got my wife off of her 3GS and gave my daughter an iPod(sim-less 3GS)

Finally, because I could. In all honesty, I don't tend to rationalize my purchases. I consider: Does it make sense for me? Will I use it? Can I afford it?

Well, if it makes sense, then you already rationalized it.
post #23 of 48
So much for everyone claiming the cheaper models are a sizeable chunk of the 37 million in iPhone sales.
post #24 of 48
Quote:
Originally Posted by Dick Applebaum View Post

I upgraded... I handed down my iP4 to my daughter to replace her 4GS.

The iP4S is faster, better camera...

It's an easy choice.

Hold the phone

Isnt the 4GS > 4S

Its got the extra G

Why would you want to replace that.
post #25 of 48
The day the iPhone 4S was announced this forum has swamped with posts about how disappointed people were about it:

"what a crock. Let the stock slide begin." - airnerd

"THIS IS ALL WRONG. Omg" - nvidia2008

"Guess I'll shop around or keep waiting for a real "new" phone to come out." - airnerd

'This is horrifying... I'll stick to the iPhone 4 for now." - jarroyo1031

"disappointing event, no new iPhone just a re-cooked iPhone 4, true to form as in the past (see iPhone 3GS), I guess they feel they are well in front of the competition there is no need of anything new. I don't see many iPhone users upgrading to 'this', 3G and 3GS sure but not 4s. I guess we have to wait another 12 months to see anything new." - sarges

"This phone is obsolete on arrival. " - mercury99

"bad move for apple" - reklss41

"Kind of a lame update. Siri looks like it could be cool, but it's going to be released as a beta. I doubt it will be a real selling feature until the next iteration of iPhone." - yensid98

"Sobbing..." - Guava

"18 months and in the end no redesign?! Maybe next year..." - Aizmov

"No excuse here. That is a let down." - matrix07

"What a let down. Did they really need a big announcement for this???" - oneaburns

"Not Apple's finest moment. Stock is tanking." - Boogerman2000

"disappointing this how Tim Cook first presentation as CEO will be remembered. I hope the specialised press will kick them hard over the next months for this disappointing damp squib of announcement. And they waited 16 months for this? Tim do you really believe that iPhone 4 users will upgrade to this?" - sarges

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post #26 of 48
Having moved from the 4 to the 4S for almost exclusively frivolous reasons (it was a clean switch having sold my 4 for 300$ on Craigslist essentially as fast as I could post the ad), my biggest sales pitch is for the speed with which it loads pages and apps, and the dictation feature for email replys and IM. Those features alone raise it far above the 4 in overall user experience. Siri, IMO, is something that I see vast potential in as time passes but I think Apple promotes it at their peril, since there are frequent times where it bogs down or does not work, and the fact that I cannot voice dial from within the phone seems to be the dirty secret that no one talks about.
post #27 of 48
Quote:
Originally Posted by sflocal View Post

I want to know how many people were coming from Android phones. I lost track of all my friends that did just that. They were all fed up with the horrible Androud experience.

Funny that we haven't heard much of a peep from fandroids infesting AI since Apple's blowout performance. They rightfully should be ashamed for supporting such an inferior system simply because it's "open" or whatever spin they want to attach to it.

However, for the sake of tradition... APPLE IS DOOMED!

I dropped my Android in a heartbeat when i preordered my iphone 4S. I tried to sell it on ebay but I had to pay someone to buy it.

Android is winning!
post #28 of 48
re: post by "SAAREK"

What I think you might be saying is I want a different looking phone for it to be a success. The 4(s) has a dual core processor and 7 times the video performance, so it is much faster in everything it has to do. It has 4 antennaes sections that auto switch to provide the strong signal into the unit. I incorporates Bluetooth 4.0 technology, along with much better radios. It has an amazing camera with 73% better light gathering so it performs better in lower light conditions. Then you say Siri, so what?

If you look at the success of the just posted quarter, there are lots of folks who get it, want it and were willing to pay for it. Add the new software, that just keeps on coming ... iBooks2, iBooks Author, iTunesU, and iCloud services for auto sync and data sharing for all your Apple devices.

Constant improvements like over-the-air (OTA) updating. This is the work of mobile by Apple. There is literally nothing like it. iPad is spreading like wild fire ... young and old, and everyone in-between, schools, businesses are clamoring for conversion into the digital world. The publishing industrial is in a revolutionary change over... along with information sharing, TV, and entertainment.

Am I excited, You bet, and I am 78 years old, but feel 50, and hopefully act accordingly. So get with the program, and find out more so you can be just as excited as the above others.
post #29 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

64 GB
It was shiny.

Oh, I passed my 4 along to family.
post #30 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

Wakey, wakey. The iPhone 4S lets you make phonecalls, no matter how you're holding it. No bumper necessary. No drops in data speeds.

Well worth it.
post #31 of 48
Quote:
Originally Posted by Just_Me View Post

Hold the phone

Isnt the 4GS > 4S

Its got the extra G

Why would you want to replace that.

Oops... meant 3GS.
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post #32 of 48

Here ya' go...



ifunny.mobi
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post #33 of 48
Quote:
Originally Posted by Rogifan View Post

Is Siri driving this? Because I'll admit it is cool but I don't use it that often. Once I used it a couple times and got over the 'cool!' factor it's no big deal. I wonder how many people use it frequently?

I use it every day. It's how I text, set up meetings, reminders, timers for cooking and even a "snooze alarm", ie "Wake me in 35 minutes."

I even use when I wonder something? "How much is a first class postage stamp?" or "Are there any UPS stores nearby?"


If all one uses it for is "What are you wearing?" it would get old.
post #34 of 48
Quote:
Originally Posted by saarek View Post

Why would anyone with an iPhone 4 upgrade to a 4S?

Sure it's got Siri which is only really any use in the US, but apart from that one single feature what is there to upgrade for?

It's not as if the iPhone 4 is slow, or has a rubbish camera. It's got the same design etc as the 4S so why do it?

Colour me confused.

This is something that annoys me, treating technology like a fashion accessory.

Quote:
Originally Posted by kevt View Post

Wakey, wakey. The iPhone 4S lets you make phonecalls, no matter how you're holding it. No bumper necessary. No drops in data speeds.

Well worth it.

That may have consumed a massive number of design hours. I'm wondering how much of an impact it had on iphone 4 owners in choosing whether or not to upgrade.
post #35 of 48
Quote:
Originally Posted by Eternal Emperor View Post

I use it every day. It's how I text, set up meetings, reminders, timers for cooking and even a "snooze alarm", ie "Wake me in 35 minutes."

I even use when I wonder something? "How much is a first class postage stamp?" or "Are there any UPS stores nearby?"


If all one uses it for is "What are you wearing?" it would get old.

Oh I do use it for texting. But not as much as I thought I would. The novelty wore off fast.
post #36 of 48
Quote:
Originally Posted by saarek View Post

It's got the same design etc as the 4S so why do it?

YOU are the reason those Samsung ads exist.

Quote:
Originally Posted by kevt View Post

The iPhone 4S lets you make phonecalls, no matter how you're holding it. No bumper necessary.

So did the 4, your point?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #37 of 48
Wow. Stick with your contract! It makes it much easier to then justify getting the NEXT, even better iPhone!
post #38 of 48
Why are the numbers in this report quite different from the Nielsen report a couple weeks ago?
post #39 of 48
Quote:
Originally Posted by drobforever View Post

Well, if it makes sense, then you already rationalized it.

rationalize: Attempt to explain or justify (one's own or another's behavior or attitude) with logical, plausible reasons, even if these are not true...:

Stabbing myself in the thigh doesn't make sense. ;-) Buying a device I can afford and will use does.

I don't bother with "Treating myself" for example.
post #40 of 48
Quote:
Originally Posted by Rogifan View Post

Oh I do use it for texting. But not as much as I thought I would. The novelty wore off fast.

Not for me "Tell wife to pick up milk at the store" or "tell wife the refi is set for Wednesday" is faster for me, than typing.
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