Apple's iPhone 4, iPhone 3GS were two best-selling US smartphones in Q3 2011

Posted:
in iPhone edited January 2014
Demonstrating the success Apple has had in continuing to sell previous-generation iPhone models at a discounted price, the iPhone 3GS was the second-best-selling smartphone in the U.S. last quarter, bested only by Apple's iPhone 4.



The results represent the third quarter of 2011, before the iPhone 4S became available. The new data, from the NPD Group, shows domestic sales of both the iPhone 4 and iPhone 3GS beat out rivals like the HTC EVO 4G, Motorola Droid 3 and Samsung Intensity II.



NPD also found that prices of smartphones are falling even though consumers originally considered playing more for their handset. For example, among those who planned to buy a smartphone in the $200 to $250 range, 64 percent made their final purchase a handset under $200.



The average selling prices for smartphones have now declined for four consecutive quarters. In the third quarter of calendar 2011, the average smartphone cost consumers $135.



Based on this, NPD said that smartphone makers and carriers are "leaving money on the table," as consumers express interest in paying more for a better handset.



The new "Smartphone Track" service from NPD also found that mobile accessories had a strong quarter, with the market led by Zagg, followed by Otter Products, Just Wireless, Motorola, and Incase Designs.



"Even as smartphone prices continue to decline, the accessory attachment rates for smartphones in Q3 was unchanged since last year," said Ross Rubin, executive director of industry analysis for NPD. "This indicates further opportunity for retailers to improve revenue numbers by focusing marketing efforts on selling more accessories."







NPD's data is based on U.S. consumers age 18 and older who reported purchasing a mobile phone or smartphone. The data does not represent corporate or enterprise mobile phone purchases.



The new data is the latest to show the strong performance that Apple's iPhone 3GS, first released in 2009, continues to experience in the market. Various reports have reaffirmed that Apple's previous-generation models routinely outsell newer Android-powered devices.



Rather than discontinue the iPhone 3GS following the launch of the iPhone 4S, Apple opted to keep the smartphone in its lineup, and offer it for free with a new service contract, compared to $99 for an 8GB iPhone 4, and $199 for the entry-level 16GB iPhone 4S. Early reports have indicated that Apple's legacy models have seen strong sales at reduced prices since the launch of the iPhone 4S.
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Comments

  • Reply 1 of 29
    lilgto64lilgto64 Posts: 1,147member
    that seems odd to me - if I went to the store expecting to pay $99 for a 3GS only to find that I could get it for $0 instead - how does that mean the sellers are leaving money on the table?



    an expectation that I would have to spend $100 to get what I want only to discover that it is available for $0 is a benefit to the consumer that the sellers are providing better value.



    that does not necessarily mean that had there been a more attractive option for $100 that I would have bought that instead. of course with iPhones now you can get the iPhone 4 for $100, right, only with 8GB.



    seems to me that $0, $99, $199, $299, and $399 for the current range of iPhones covers every potential customer budget and at least Apple is not leaving any money on the table.



    companies whom only offer more expensive options these days may be leaving money on the table since their over priced products are not capturing the money of folks who are still likely very concerned about financial matters.
  • Reply 2 of 29
    cmvsmcmvsm Posts: 204member
    Yes, and the stock keeps plummeting off of baseless opinion and 'business' reporting. Apple is the only stock that I know of that can outsell every competitor in its class and still get bashed on stock price. This stock really needs to be investigated, as the manipulation has gone completely off the charts, especially over the last 8 weeks. Really sick of it.
  • Reply 3 of 29
    Quote:
    Originally Posted by lilgto64 View Post


    that seems odd to me - if I went to the store expecting to pay $99 for a 3GS only to find that I could get it for $0 instead - how does that mean the sellers are leaving money on the table?



    an expectation that I would have to spend $100 to get what I want only to discover that it is available for $0 is a benefit to the consumer that the sellers are providing better value.



    that does not necessarily mean that had there been a more attractive option for $100 that I would have bought that instead. of course with iPhones now you can get the iPhone 4 for $100, right, only with 8GB.



    seems to me that $0, $99, $199, $299, and $399 for the current range of iPhones covers every potential customer budget and at least Apple is not leaving any money on the table.



    companies whom only offer more expensive options these days may be leaving money on the table since their over priced products are not capturing the money of folks who are still likely very concerned about financial matters.



    This was Q3 2011, before the price drop and iPhone 4S
  • Reply 4 of 29
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by lilgto64 View Post


    that seems odd to me - if I went to the store expecting to pay $99 for a 3GS only to find that I could get it for $0 instead - how does that mean the sellers are leaving money on the table?



    How could it mean anything else? You're right that it's a great deal for the consumer, but you just repeated several times a case study in leaving money on the table.
  • Reply 5 of 29
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by cmvsm View Post


    Yes, and the stock keeps plummeting off of baseless opinion and 'business' reporting. Apple is the only stock that I know of that can outsell every competitor in its class and still get bashed on stock price. This stock really needs to be investigated, as the manipulation has gone completely off the charts, especially over the last 8 weeks. Really sick of it.



    Clueless
  • Reply 6 of 29
    Quote:
    Originally Posted by AppleInsider View Post


    Demonstrating the success Apple has had in continuing to sell previous-generation iPhone models at a discounted price, the iPhone 3GS was the second-best-selling smartphone in the U.S. last quarter, bested only by Apple's iPhone 4.



    It looks like a genius marketing move for Apple to make available iPhones from every price point from free upwards.



    Android cannot compete with their old phones because they are not backward compatible with the latest Android software, whereas the 3Gs and 4 use the latest iOS software, except for Siri



    Additionally Apple commands the largest subsidies from the carriers! Android can't now undercut Apple's prices!



    So now Apple may have the top three selling Smartphones in the US:



    1) iPhone 4S

    2) iPhone 4

    3) iPhone 3GS



    I wonder what their market share of the US Smartphone will be - over 50% perhaps?
  • Reply 7 of 29
    Quote:
    Originally Posted by cameronj View Post


    Clueless



    I am curious, though, why it's at the same price now as it was an entire quarter ago.
  • Reply 8 of 29
    Quote:
    Originally Posted by lilgto64 View Post


    Seems to me that $0, $99, $199, $299, and $399 for the current range of iPhones covers every potential customer budget and at least Apple is not leaving any money on the table.



    Yes if you want a phone on contract. The price for the 3GS and 4/4S are still prohibatively expensive for most pre-pay / pay-as-you-go users at £319, £429, £499, £599, £699.
  • Reply 9 of 29
    Quote:
    Originally Posted by cmvsm View Post


    Yes, and the stock keeps plummeting off of baseless opinion and 'business' reporting. Apple is the only stock that I know of that can outsell every competitor in its class and still get bashed on stock price. This stock really needs to be investigated, as the manipulation has gone completely off the charts, especially over the last 8 weeks. Really sick of it.



    The DOJ is carrying on an investigation.
  • Reply 10 of 29
    lkrupplkrupp Posts: 7,470member
    Quote:
    Originally Posted by Tallest Skil View Post


    I am curious, though, why it's at the same price now as it was an entire quarter ago.



    Rumors and rumors of rumors? It seems like it all started when some analyst played with his abacus and determined that iPad and iPhone sales we're slowing down. It could also be that the Steve Jobs halo effect was real and his absence is just now sinking in. Personally I think the company will get better without Jobs. His biography shows that while he was a genius who could see the future he was also so obsessed with perfection and design sometimes to the detrement of the product, i.e. the Cube. We'll see if Tim Cook + Jony Ives = Steve Jobs only better.
  • Reply 11 of 29
    cmvsmcmvsm Posts: 204member
    Quote:
    Originally Posted by cameronj View Post


    Clueless



    Really? Expound on your one word nonsense or stick to the philosophy channel.
  • Reply 12 of 29
    gatorguygatorguy Posts: 21,302member
    Quote:
    Originally Posted by mdriftmeyer View Post


    The DOJ is carrying on an investigation.



    They are? I did a search for "DOJ Apple stock price investigation" and came up empty. Several references to other DOJ investigations concerning Apple, but didn't see one on potential stock manipulation.



    Got a link?
  • Reply 13 of 29
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by Tallest Skil View Post


    I am curious, though, why it's at the same price now as it was an entire quarter ago.



    Because nothing has changed substantially in Apple's financial outlook. The market is not surprised by the iPhone 4S in a positive or negative way, it's just about what was expected, financially. Same with the aggregate of other product lines. The market is a very simple beast.
  • Reply 14 of 29
    trumptmantrumptman Posts: 16,461member
    Quote:
    Originally Posted by AppleInsider View Post


    NPD also found that prices of smartphones are falling even though consumers originally considered playing more for their handset. For example, among those who planned to buy a smartphone in the $200 to $250 range, 64 percent made their final purchase a handset under $200.



    The average selling prices for smartphones have now declined for four consecutive quarters. In the third quarter of calendar 2011, the average smartphone cost consumers $135.



    Based on this, NPD said that smartphone makers and carriers are "leaving money on the table," as consumers express interest in paying more for a better handset.



    They aren't leaving money on the table. They are purchasing marketshare with their lower prices in a race to weed out competitors.



    Quote:
    Originally Posted by lilgto64 View Post


    that seems odd to me - if I went to the store expecting to pay $99 for a 3GS only to find that I could get it for $0 instead - how does that mean the sellers are leaving money on the table?



    an expectation that I would have to spend $100 to get what I want only to discover that it is available for $0 is a benefit to the consumer that the sellers are providing better value.



    that does not necessarily mean that had there been a more attractive option for $100 that I would have bought that instead. of course with iPhones now you can get the iPhone 4 for $100, right, only with 8GB.



    seems to me that $0, $99, $199, $299, and $399 for the current range of iPhones covers every potential customer budget and at least Apple is not leaving any money on the table.



    companies whom only offer more expensive options these days may be leaving money on the table since their over priced products are not capturing the money of folks who are still likely very concerned about financial matters.



    In effect Apple is leaving money on the table as well because they have to hit and offer the lower price points. If you went in expecting to spend $199 to get the iPhone 4/16 gig and walked out having spent $99 to get the iPhone 4/8 gig because you aren't a techie and didn't realize there was a new model, you spent $99 less dollars than you would have.



    Quote:
    Originally Posted by cmvsm View Post


    Yes, and the stock keeps plummeting off of baseless opinion and 'business' reporting. Apple is the only stock that I know of that can outsell every competitor in its class and still get bashed on stock price. This stock really needs to be investigated, as the manipulation has gone completely off the charts, especially over the last 8 weeks. Really sick of it.



    It isn't baseless. First the stock is part of the overall market which is facing massive uncertainty thanks to the Euro. Another point is that people don't like uncertainty in a market. Apple appears to be coasting or stagnanting. The iPhone 4S is a decent upgrade. However such upgrades are no longer worth a wait of 15 months. Then you add the iPad 2 which won't be upgraded for a year. The entire iPod line got absolutely zero upgrades. Even most of the Mac line has gotten by on processor, ram and storage bumps for a year or so. If there aren't big things in the pipe, then these are legitimate concerns. Apple has had their visionary leader pass on and all they are showing so far is the same stuff as a year ago with a new color or an upgraded processor and camera.
  • Reply 15 of 29
    Quote:
    Originally Posted by cameronj View Post


    Because nothing has changed substantially in Apple's financial outlook. The market is not surprised by the iPhone 4S in a positive or negative way, it's just about what was expected, financially. Same with the aggregate of other product lines. The market is a very simple beast.



    Really? The market isn't viewing the 4S (or the low sales of the 4 during the 4th fiscal qtr) in a negative way?



    AAPL was following the Naz after the initial sell off after earnings on Oct 18th (although trailing by around 2%) but then fatigue seems to have set in around the 9th of Nov when AAPL seemed to truly separate from the Naz and is now way below the Naz average for the last month by around 10%.
  • Reply 16 of 29
    Quote:
    Originally Posted by trumptman View Post


    It isn't baseless. First the stock is part of the overall market which is facing massive uncertainty thanks to the Euro. Another point is that people don't like uncertainty in a market. Apple appears to be coasting or stagnanting. The iPhone 4S is a decent upgrade. However such upgrades are no longer worth a weight of 15 months. Then you add the iPad 2 which won't be upgraded for a year. The entire iPod line got absolutely zero upgrades. Even most of the Mac line has gotten by on processor, ram and storage bumps for a year or so. If there aren't big things in the pipe, then these are legitimate concerns. Apple has had their visionary leader pass on and all they are showing so far is the same stuff as a year ago with a new color or an upgraded processor and camera.



    Exactly. Money guys are not tech guys. Whether real or not they have concerns about how Apple will perform in the next few years without SJ. As you mentioned... they may not have been overly impressed by the 4S knowing how the 4 performed in the lead up quarter.



    At this point Apple could announce a $50 billion in January but it still won't mean too much if WS doesn't see a clear path into the future filled with the innovation they've seen in the past few years.
  • Reply 17 of 29
    sflocalsflocal Posts: 4,752member
    Quote:
    Originally Posted by trumptman View Post


    It isn't baseless. First the stock is part of the overall market which is facing massive uncertainty thanks to the Euro. Another point is that people don't like uncertainty in a market. Apple appears to be coasting or stagnanting. The iPhone 4S is a decent upgrade. However such upgrades are no longer worth a weight of 15 months. Then you add the iPad 2 which won't be upgraded for a year. The entire iPod line got absolutely zero upgrades. Even most of the Mac line has gotten by on processor, ram and storage bumps for a year or so. If there aren't big things in the pipe, then these are legitimate concerns. Apple has had their visionary leader pass on and all they are showing so far is the same stuff as a year ago with a new color or an upgraded processor and camera.



    I think the Euro is mainly the key problem. However, I totally am not buying the "Apple is stagnant" argument. Looks like even folks like you have bought into the notion that Apple has to have a market changer in every product on every product refresh in order to be relevant.



    Their products are solid. Did it ever occur to you that their iPod line is getting less attention because the market for a dedicated music player is dwindling since everyone has an all-in-one device like an iPod Touch, iPhone, or other smartphones?



    They are selling boatloads of iPhones, iPads, and MacBooks. Their iMac line is continuing with great (increasing) sales, and the Chinese market is poised for a serious explosion. What more do you want when you compare Apple's performance to the other players? Honestly, what more do you expect?



    I have full faith that Apple is still innovating and will continue to come out with great products and services.



    Some people have their standards so high, that nothing that Apple comes out with will be good enough. Perhaps Apple set the bar higher with their blockbuster products that shook the market for the past few years, but that doesn't mean they ran out of steam.
  • Reply 18 of 29
    trumptmantrumptman Posts: 16,461member
    Quote:
    Originally Posted by sflocal View Post


    I think the Euro is mainly the key problem. However, I totally am not buying the "Apple is stagnant" argument. Looks like even folks like you have bought into the notion that Apple has to have a market changer in every product on every product refresh in order to be relevant..



    Since no one claimed this, I'm going to assume you meant it as a funny strawman instead of a real argument.



    Quote:

    Their products are solid. Did it ever occur to you that their iPod line is getting less attention because the market for a dedicated music player is dwindling since everyone has an all-in-one device like an iPod Touch, iPhone, or other smartphones?



    Solid isn't good enough. Apple maintains premium pricing by offering the best products in their respective markets. They often trade more expensive specs for a more comprehensive solution. As an example the iPod's can go more vertical. People are begging for built in GPS, Nike+ tracking and low power bluetooth 4.0 for wireless headsets on the current nano. GPS watches are premium priced items that fetch $300-400. Apple could take the Nano there for half that and still be making a killing at a higher price point then they charge now.



    Quote:

    They are selling boatloads of iPhones, iPads, and MacBooks. Their iMac line is continuing with great (increasing) sales, and the Chinese market is poised for a serious explosion. What more do you want when you compare Apple's performance to the other players? Honestly, what more do you expect?



    I expect profitable growth that continues to outpace the market. They have Samsung selling plenty of smartphones along with half a dozen other competitors. They have Amazon ready to make a tablet splash. They've got Microsoft cooking up Windows 8. People price current profits and future projected growth into the stock price. The future for Apple right now is uncertain and they need premium margins to maintain that stock price. They can't be just another smartphone or even a decent smartphone. They need to be the smartphone that sucks up half the profits in the market or else their stock needs to take that price hit.



    Quote:

    I have full faith that Apple is still innovating and will continue to come out with great products and services.



    So go buy some stock at the current price knowing it will go up.



    Quote:

    Some people have their standards so high, that nothing that Apple comes out with will be good enough. Perhaps Apple set the bar higher with their blockbuster products that shook the market for the past few years, but that doesn't mean they ran out of steam.



    It has nothing to do with intentions and everything to do with others stepping up and offering compelling and comprehensive solutions. I don't trust many people with my credit information. Apple has it. Amazon has it. Guess who just started offering a free app of the day and a $200 tablet. That has to be addressed.
  • Reply 19 of 29
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by cmvsm View Post


    Really? Expound on your one word nonsense or stick to the philosophy channel.



    You complain when it goes down for a week. You don't complain when it goes up 90% of other weeks. You're a homer, you have no clue about the stock market.
  • Reply 20 of 29
    conradjoeconradjoe Posts: 1,887member
    Quote:
    Originally Posted by AppleInsider View Post


    the iPhone 3GS was the second-best-selling smartphone in the U.S. last quarter





    No Android phone is cheaper. Apple won the race.
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