With the iPhone 5c taking 27 percent this year, it's just slightly ahead of the 23 percent share the iPhone 4S captured during the same period in 2012, just after the launch of the iPhone 5.
In other words they could have stuck to their old strategy of demoting the previous flagship one level, and would have sold almost the same (27% vs 23%)?
This is exactly what the 5c should be doing. How would a regular 5 have sold? A 5 with a more expensive case? How much would it have cannibalized sales of the 5s? I think the 5c strategy worked out perfectly, no cannibalization and higher margins from those who did buy it.
There hasn't been much evidence yet that the 5c was a "great move" unless I've missed a lot.
You missed the numbers.
Originally Posted by Gatorguy
So then you're basing your "how much more evidence do we need" on this single report, even tho you've dismissed other reports that are painting the 5c sales in a lesser light.
Probably because this one has numbers and every single other report has nothing more substantial than “I think so”.
Originally Posted by Ingela
How much would it have cannibalized sales of the 5s?
Not at all, given that absolutely no iPhone has done that.
Probably because this one has numbers and every single other report has nothing more substantial than “I think so”.
Not at all, given that absolutely no iPhone has done that.
Nearly all the AI articles on 5c sales included "numbers" IIRC. Some like this one were simple percentages and not units, while others offered numbers of units and no percentages and I thought one surmised both. I believe there were even some with "price cut" numbers. Could be wrong. Why are these "numbers" more reliable/factual than other "numbers". I guess you're saying a survey from Consumer Intelligence Research Partners should be considered accurate from now on?
Let me break this down for simple minds like mine. The 5C is selling way more than the 4S did at this point last year. The 5C is a Very Successful Product.
Did I call it? Yes.
Will analysts try to hide the success d the 5C? Yes.
Will the analysts fairly quickly be proved ridiculously wrong? Yes.
to know if the 27% Vs 23% is meaningful, we need to know the margin of error of the data. Those numbers are close so with a modest margin of error they are statistically a tie.
I think Apple is doing this deliberately and they are playing it smart.
In the first month(s) of release, iPhones sell predominantly to existing Apple owners. I believe the data is showing diminishing percentages of *new* iPhone adopters year to year. Apple priced the 5c 'higher than expected' The faithful look at the prices and go "$100 bucks more for a 5s? I'll take that one." Had Apple priced the 5c lower there very well could have been more cannibalization.
Once the initial rush sales spike is over, I'm betting Apple will lower the pricing on the 5c and allow it to go after more market share without completely throwing margins under the bus.
At its current pricing I don't thing 27% is bad at all.
Quote: It could also be an indication that the 5c is simply overpriced, particularly since its primary competitor is a used iPhone 5, perhaps picked up from a friend who's upgraded to a 5s. And that iPhone 5, if it has been treated well, will look much better.
I think this is Apple's strategy. It's actually priced "just right". It's not cannibalizing it's flagship, while providing a less expensive option with great margins. What they will do is lower the price or allow retailers to discount more. Overall this puts huge pressure on Android while not tarnishing the Apple brand.
to know if the 27% Vs 23% is meaningful, we need to know the margin of error of the data. Those numbers are close so with a modest margin of error they are statistically a tie.
Oh, don't let facts get in the way of a good argument.
I think this is Apple's strategy. It's actually priced "just right". It's not cannibalizing it's flagship, while providing a less expensive option with great margins. What they will do is lower the price or allow retailers to discount more. Overall this puts huge pressure on Android while not tarnishing the Apple brand.
The gap is so big in Europe atleast that it wont give android any problems expanding even further. Actually its the opposite for Apple. Apple is going to have more problems later if they dont sell bigger volumes than earlier. It is apple that is going to be such a niche soon that any services will work lastly on it (eg. web pages and services etc.). It all now hangs on the ipad. The iphone is a lost cause already (OK, maybe not in the states but elsewhere).
There are plenty of services only android now and its so cheap that they can throw in a phone on the side just for kicks. Bought a 7000 Euro geothermal pump. the UI app is only for android. Not even 2 Years later is there an iphone version. Well thats why they gave a 250 Euro android phone on the side for free.
Soon there wont be any users below adulthood using iphones... There almost now isnt anymore (here in the Europe). Well Apple is knowingly being samsungs best buddy making a whole industry for Samsung. Apple doesnt want to cater to the most, Samsung can have them.
Well its alright, I get it, they don't like to make devices only to the richest of us. It is Apples right to chose its customers and its the customers right to chose its vendor.
If i where apple i would try to keep the foothold better but as apple is only interested in getting its margins increasing with every iteration then this strategy will have the same consequences to the ipad as the iphone has suffered.You can accelerate only as much with gasfumes.
It is apple that is going to be such a niche soon that any services will work lastly on it (eg. web pages and services etc.). The iPhone is a lost cause already…
Thanks for the FUD.
There are plenty of services only android now…
Can you name one?
Soon there wont be any users below adulthood using iphones... There almost now isnt anymore (here in the Europe).
This is exactly what the 5c should be doing. How would a regular 5 have sold? A 5 with a more expensive case? How much would it have cannibalized sales of the 5s? I think the 5c strategy worked out perfectly, no cannibalization and higher margins from those who did buy it.
Actually all the figures from this data are suspect... but let's just say they are right for argument's sake.
The same data from last year shows that the 5 sold a 68% share.
So... using this data as gospel we find that the 5c is indeed cannibalizing 5s sales.
... but as someone mentioned, the margin of error probably wipes out most of the differences in the data.
"The new data also suggests that the iPhone 5c is not carving out a larger share of overall iPhone sales than the iPhone 4S managed last year, when it was the company's $100-on-contract handset."
There hasn't been much evidence yet that the 5c was a "great move" unless I've missed a lot.
Yes, you've missed a lot. And you're wrong as usual. Move on to your next troll please.
So basically what this survet says is early adopters are buying the flagship device. Wow color me shocked.
I think that's right. It's the sustained sales shares that are important, not the first few weeks after launch.
BTW, I also think it's wrong to view Europe (even the EU) as an homogeneous market. iPhone's doing pretty well in UK, I believe. From personal experience, teens also like iPod Touch (they and parents see the 'iPhone ecosystem without the call charges' angle).
Comments
I was replying to TBell's assumed numbers.
With the iPhone 5c taking 27 percent this year, it's just slightly ahead of the 23 percent share the iPhone 4S captured during the same period in 2012, just after the launch of the iPhone 5.
In other words they could have stuck to their old strategy of demoting the previous flagship one level, and would have sold almost the same (27% vs 23%)?
This is exactly what the 5c should be doing. How would a regular 5 have sold? A 5 with a more expensive case? How much would it have cannibalized sales of the 5s? I think the 5c strategy worked out perfectly, no cannibalization and higher margins from those who did buy it.
You missed the numbers.
Probably because this one has numbers and every single other report has nothing more substantial than “I think so”.
Not at all, given that absolutely no iPhone has done that.
Nearly all the AI articles on 5c sales included "numbers" IIRC. Some like this one were simple percentages and not units, while others offered numbers of units and no percentages and I thought one surmised both. I believe there were even some with "price cut" numbers. Could be wrong. Why are these "numbers" more reliable/factual than other "numbers". I guess you're saying a survey from Consumer Intelligence Research Partners should be considered accurate from now on?
Did I call it? Yes.
Will analysts try to hide the success d the 5C? Yes.
Will the analysts fairly quickly be proved ridiculously wrong? Yes.
to know if the 27% Vs 23% is meaningful, we need to know the margin of error of the data. Those numbers are close so with a modest margin of error they are statistically a tie.
I think Apple is doing this deliberately and they are playing it smart.
In the first month(s) of release, iPhones sell predominantly to existing Apple owners. I believe the data is showing diminishing percentages of *new* iPhone adopters year to year. Apple priced the 5c 'higher than expected' The faithful look at the prices and go "$100 bucks more for a 5s? I'll take that one." Had Apple priced the 5c lower there very well could have been more cannibalization.
Once the initial rush sales spike is over, I'm betting Apple will lower the pricing on the 5c and allow it to go after more market share without completely throwing margins under the bus.
At its current pricing I don't thing 27% is bad at all.
I think this is Apple's strategy. It's actually priced "just right". It's not cannibalizing it's flagship, while providing a less expensive option with great margins. What they will do is lower the price or allow retailers to discount more. Overall this puts huge pressure on Android while not tarnishing the Apple brand.
to know if the 27% Vs 23% is meaningful, we need to know the margin of error of the data. Those numbers are close so with a modest margin of error they are statistically a tie.
Oh, don't let facts get in the way of a good argument.
Just to note:
This is a U.S.A. survey only.
I
I think this is Apple's strategy. It's actually priced "just right". It's not cannibalizing it's flagship, while providing a less expensive option with great margins. What they will do is lower the price or allow retailers to discount more. Overall this puts huge pressure on Android while not tarnishing the Apple brand.
The gap is so big in Europe atleast that it wont give android any problems expanding even further. Actually its the opposite for Apple. Apple is going to have more problems later if they dont sell bigger volumes than earlier. It is apple that is going to be such a niche soon that any services will work lastly on it (eg. web pages and services etc.). It all now hangs on the ipad. The iphone is a lost cause already (OK, maybe not in the states but elsewhere).
There are plenty of services only android now and its so cheap that they can throw in a phone on the side just for kicks. Bought a 7000 Euro geothermal pump. the UI app is only for android. Not even 2 Years later is there an iphone version. Well thats why they gave a 250 Euro android phone on the side for free.
Soon there wont be any users below adulthood using iphones... There almost now isnt anymore (here in the Europe). Well Apple is knowingly being samsungs best buddy making a whole industry for Samsung. Apple doesnt want to cater to the most, Samsung can have them.
Well its alright, I get it, they don't like to make devices only to the richest of us. It is Apples right to chose its customers and its the customers right to chose its vendor.
If i where apple i would try to keep the foothold better but as apple is only interested in getting its margins increasing with every iteration then this strategy will have the same consequences to the ipad as the iphone has suffered.You can accelerate only as much with gasfumes.
Thanks for the FUD.
There are plenty of services only android now…
Can you name one?
Soon there wont be any users below adulthood using iphones... There almost now isnt anymore (here in the Europe).
Utterly ludicrous.
This is exactly what the 5c should be doing. How would a regular 5 have sold? A 5 with a more expensive case? How much would it have cannibalized sales of the 5s? I think the 5c strategy worked out perfectly, no cannibalization and higher margins from those who did buy it.
Actually all the figures from this data are suspect... but let's just say they are right for argument's sake.
The same data from last year shows that the 5 sold a 68% share.
So... using this data as gospel we find that the 5c is indeed cannibalizing 5s sales.
... but as someone mentioned, the margin of error probably wipes out most of the differences in the data.
"Out of..."?
And "island hermit" says "So... using this data as gospel we find that the 5c is indeed cannibalizing 5s sales"…
That would appear to be the case and by almost exactly the same ratio that 4Ss cannibalized the sales of iPh5 units one year ago, right?
"The new data also suggests that the iPhone 5c is not carving out a larger share of overall iPhone sales than the iPhone 4S managed last year, when it was the company's $100-on-contract handset."
There hasn't been much evidence yet that the 5c was a "great move" unless I've missed a lot.
Yes, you've missed a lot. And you're wrong as usual. Move on to your next troll please.
So basically what this survet says is early adopters are buying the flagship device. Wow color me shocked.
I think that's right. It's the sustained sales shares that are important, not the first few weeks after launch.
BTW, I also think it's wrong to view Europe (even the EU) as an homogeneous market. iPhone's doing pretty well in UK, I believe. From personal experience, teens also like iPod Touch (they and parents see the 'iPhone ecosystem without the call charges' angle).
So 9%--roughly one out of ten--buy a 4s? And for every three 5Cs sold, someone buys a 4s? Interesting.
And "island hermit" says "So... using this data as gospel we find that the 5c is indeed cannibalizing 5s sales"…
That would appear to be the case and by almost exactly the same ratio that 4Ss cannibalized the sales of iPh5 units one year ago, right?