Apple's recurring revenue stream: 77% of iPhone 4 sales were upgrades

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Comments

  • Reply 21 of 33
    phalanxphalanx Posts: 109member
    Quote:
    Originally Posted by Robin Huber View Post


    Someone I know is an AT&T executive. He/she told me over a week ago that 90% of iPhone 4 buyers were upgraders. AT&T has hard data, not the hearsay kind gotten by polling people in lines. I reported this information to AI's tip line but never saw anything like it reported on this site. But when analysts report man-on-the-street polling as hard numbers, it gets published. WTF?



    This is an interesting point. AppleInsider is seeing this as a big positive. I would tend to think that it may mean the AT&T market is saturated with people that are wanting an iPhone. I guess time will tell. Love to know how they are going to fix, tap dance, etc. around the antenna issue. Saying that all phones have this issues is weak, and Steve said himself that this is a revolution, and magical. Being able to call someone with my hand around the phone must be beyond "magical". Sometimes these arrogant guys kill me.
  • Reply 22 of 33
    daveswdavesw Posts: 406member
    With all the malware and security and privacy issues I don't think Android phones should be allowed in the Enterprise.





    Twenty percent of applications on Android Market let third parties access private or

    sensitive information, according to a report from security vendor SMobile Systems.



    http://forums.appleinsider.com/showthread.php?t=110862
  • Reply 23 of 33
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by BUSHMAN4 View Post


    What kind of survey is 608 people out of 600000 buyers??? This is just a sampling not a survey. Assuming this was done at one store, demographics etc play a part in the sampling and it really DOES NOT provide any real data when applied to the masses.



    Why assume one store, when the story clearly says three stores?
  • Reply 24 of 33
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by phalanx View Post


    This is an interesting point. AppleInsider is seeing this as a big positive. I would tend to think that it may mean the AT&T market is saturated with people that are wanting an iPhone.



    There are other factors to consider. Of these "10%" what number does that represent in unit sales? How does this compare to the previous year's unit sales? AT&T has increased their subscriber levels since getting the iPhone, but perhaps more importantly they have also increased their retention rate, all seemingly at the expense of others.



    This "90%" being upgraders shows that AT&T is retaining customers YoY which is very important to their bottom line, helps to draw in more customers and says a lot about the iPhone for Apple.



    If Verizon doesn't get the iPhone next year then I think it's possible AT&T will be have more subscribers, with a greater number paying for data services and with less turn over. This is assuming that neither buys another company to boost their subscriber levels.
  • Reply 25 of 33
    The way I read the 77% upgrade figure was that new customers to iPhone 4 are not likely to be first day buyers (or even pre-orderers), esp. when first day buying an Apple product means queueing in long lines. If these percentages continue over time I'd say its not a good sign but on launch day it doesn't mean much.



    It would also be interesting to see if this is a USA phenomenon. I bought my iPhone 4 on launch day at the Regent Street shop in London and it seemed to me that there were large numbers of people upgrading (there were special deals being offered for those not out of contract) but I also noticed a lot of sim free customers too.The queues seemed about equal from what I could tell. In fact, O2, the original iPhone dealer wasn't even allowing new customers to buy the iPhone, as supplies were constrained they were only selling to existing customers. But that was at their own shops and not Apple. So presumably the sim free queue covered the other mobile operators, Vodafone and Orange.
  • Reply 26 of 33
    Quote:
    Originally Posted by AppleInsider View Post


    14 percent plan to buy an iPad in the next 90 days, almost two times the number expecting to buy a Mac.





    Why is the so called Halo effect not so much larger. When are all these iPod, iPhone & iPad users going to switch. I know the Mac market share is going up but its only climbing very slowly.



    I would have expected more of a surge. And why cant Apple run Mac ads that actually explain the benefits of a Mac i,e OS X, rather than just giving the impression you're paying for good looks?
  • Reply 27 of 33
    gwmacgwmac Posts: 1,799member
    AT&T has just about got all the defectors they are going to get. There will always be some amount of churn, but it has largely stabilized recently. There is something in the neighborhood of 180 million phone subscribers in the U.S. not on AT&T. That is a big untapped market for Apple.



    No matter how great the current or future iPhone is, some people (me included) refuse to switch to what we consider to be an inferior network. Not to mention many of us might have ridiculously cheap plans that we won't give up. I currently pay only $30 a month for a Sprint SERO account with unlimited data & text and 500 anytime minutes from 5PM weekdays. Even on Sprint I can't get the latest and greatest Android phones unless I upgrade to a similar plan for $59, granted that would give me unlimited minutes to any cell phone network. So far I have not been impressed enough with Android to switch from my HTC Touch Pro 2 and spend an extra $360 a year. But if the iPhone came to Sprint I would happily pay $59 or even more and upgrade my plan. I will not however switch to AT&T which offers far worse coverage (at least from my house and city) and pay around $120 for a similar plan. A phone after all is useless if you can't make calls.



    I wonder how many people on AT&T or Verizon would give Sprint a try if they offered an iPhone with their $69 anytime/any mobile or $99 unlimited everything plan and their 100% money back guarantee if you are not happy with the service in 30 days.
  • Reply 28 of 33
    jousterjouster Posts: 460member
    Quote:
    Originally Posted by bluedalmatian View Post


    Why is the so called Halo effect not so much larger. When are all these iPod, iPhone & iPad users going to switch?



    They already did. They use iOS. Apple gets $ and they get a nice device. And soon, when iOS runs on top of OS X, it won't matter.
  • Reply 29 of 33
    akhomerunakhomerun Posts: 386member
    I have no idea so many people were lined up for the iPhone 4 that were using their 3GS (I'm talking about first hand experience in the mall here). Don't they realize many of the features are available in the current model as part of the software update?



    The only hardware updates are

    - Design, which is more ugly and less unique, but possibly slightly more durable.

    - Supposedly better signal. Slightly better call quality. I didn't see signal quality and call quality preventing anybody from buying an iPhone (aside from issues which are purely AT&T's fault)

    - Processor speed and RAM. I didn't find many people complaining about the speed of the 3GS. Multitasking is available on the 3GS

    - Front facing camera. Pretty useless feature since it FaceTime works between iPhone 4s in WiFi only. Wouldn't a WiFi enabled Skype device be much more useful? Also, very few iPhone competitors have front facing cameras...tells you a lot about how much people really want the feature.

    - Display. While it's awesome, the screen is already pretty small and many people had trouble identifying individual pixels as it was.

    - HD video recording. Price vs. need would step in here. Taking random videos of uninteresting shit requires HD? Having HD video capability also means more people will have to pay more for the higher capacity iPhone models. Thanks Apple for being the only one unwilling to give me a MicroSD slot. I mean come on, even the hunk-of-junk LG enV has this. I'm talking about the ORIGINAL enV, not the current 4th iteration.



    That's it. And people are willing to renew a 2 year contract and pay $200 just for that.



    Well, I guess I'm not rich enough to relate.



    Not trying to bash the iPhone 4 tremendously. If you have an iPhone 3G, 2G, or no iPhone at all, this is the phone to get. It would also be nice to see a standardized USB charger like so many other phone manufacturers have now committed to. The dock connector should be there, but there should be a standard USB option.
  • Reply 30 of 33
    bettiebluebettieblue Posts: 294member
    Quote:
    Originally Posted by BUSHMAN4 View Post


    What kind of survey is 608 people out of 600000 buyers??? This is just a sampling not a survey. Assuming this was done at one store, demographics etc play a part in the sampling and it really DOES NOT provide any real data when applied to the masses.



    I could not agree more. Even thought is was more than one store, it was all from people waiting outside in a line to buy the iPhone.....WTF???



    Go to Bestbuy or Walmart where the phone is sold and ask people going in and out of the store.



    I mean seriously if you go to Yankee stadium and poll people waiting in line to buy playoff tickets, how many would say they are Yankee fans?????



    This is not a survey. Basing any conclusions on this data is flat out ignorant.
  • Reply 31 of 33
    ddubres79ddubres79 Posts: 101member
    Should read, " Apple's recurring revenue stream: 77% of iPhone 4 sales, from 608 people across three select locations, were upgrades.'
  • Reply 32 of 33
    Quote:
    Originally Posted by davesw View Post


    Twenty percent of applications on Android Market let third parties access private or

    sensitive information, according to a report from security vendor SMobile Systems.



    http://forums.appleinsider.com/showthread.php?t=110862



    More recently:



    CNET retracts article on Android app privacy threat

    http://www.zdnet.com/blog/burnette/c...results-rivers
  • Reply 33 of 33
    guinnessguinness Posts: 473member
    Quote:
    Originally Posted by bluedalmatian View Post


    Why is the so called Halo effect not so much larger. When are all these iPod, iPhone & iPad users going to switch. I know the Mac market share is going up but its only climbing very slowly.



    I would have expected more of a surge. And why cant Apple run Mac ads that actually explain the benefits of a Mac i,e OS X, rather than just giving the impression you're paying for good looks?



    Probably economics.



    Cheapest desktop (sans monitor) Mac is $700, cheapest AIO is $1200, laptop, $1000. Most PC's are under $1000. I personally don't see the market for the iPad, but it's selling well, but that starts at $500, which is still a lot cheaper than most Macs.



    And considering that most people only use their computers for web/e-mail/pics, the OS is basically a wash (maybe not so much Linux, but most distros work well out of the box). So even than an iPad would work for a lot people, why spend the $1000+ for a full Mac?



    Other users (like me) like the aesthetics, but I'm put off on paying top dollar for last year's technology. Oh, I like the 10 hour batteries and the thin designs, but it's not that impressive if I'm still stuck with a C2D or integrated graphics...I'll stick with my PC and older Mini. If I didn't want/care about the components as much, then Apple would be an option for me, but most of their computers aren't for me.



    Spending $200 on a phone or iPod is about what everyone pays for a smartphone or DAP to begin with.
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