iPhone 4S accounts for 90% of US iPhone sales, 42% of customers break contract to buy
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.
Comments
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.
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!
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.
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)
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.
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.
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.
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!
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.
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.
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.
"The new iPhone 4S is a total flop."
Compared to the iPhone5
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.
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 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.
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.
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.
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?