Launch iPhone 7 purchasers predominantly upgraders, looking for 128 GB

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in iPhone
An analyst's examination of iPhone 7 buyers at launch sees more customers looking at 128GB models versus 256GB, with the vast majority of early buyers upgraders from older iPhones rather than switchers from Android.




Financial analyst firm Piper Jaffray polled 83 people waiting in line for an iPhone 7. The company found that 54% of launch buyers were looking at buying an iPhone 7, with the remaining 46% set on buying the iPhone 7 plus, what the firm calls "essentially the inverse" of launch traffic for the iPhone 6 and 6s.

According to the firm, more buyers were seeking the 128 GB capacity than the 256 GB model, which may have been affected by the larger phone not being available at retail. The analyst firm assumes that the larger Plus-sizes of the iPhone also will attract customers seeking higher storage capacities, as it has in the past.

Additionally, 98% of the buyers in line already owned an iPhone, with only 2% being switchers from Android. Between the small sample size, and prevalence of launch day purchasers being upgraders from older iPhones, little weight was attributed to the switcher percentages by the firm.

Previous launches differed somewhat as far as switcher numbers. For the iPhone 6s launch, 88% of buyers were loyalists to Apple. Notably, the iPhone 6s launch population sample size was lower than the current group.

Despite difficulties in pre-ordering phones on the iPhone Upgrade Program on launch day, 34% of the respondents were planning on using the program to finance the day's purchase. Piper Jaffray believes that approximately 25% of iPhone sales in the US are made at Apple retail locations, with about 9% of the total being sold through the upgrade program.




Piper Jaffray believes that the polling size decrease over the peak of 608 hit with the iPhone 4 has little to do with demand, and more to do with the vast array of pre-ordering options now available to customers.

Comments

  • Reply 1 of 17
    So one of the leading industry analysts gets press for 83 interviews?  
    theothergeoffRSGinSFperkedelwatto_cobra
  • Reply 2 of 17
    AI's postings have just about hit bottom with this dribble.  AI, you could have written this in light of what it is...an 'analyst' looking to get their and/or their Company's name in print.  You could have chastised the 'analyst' for even suggesting that there was some relevance to their "survey."

    Sad, AI, just sad!
    lkruppRSGinSFperkedelDeelron
  • Reply 3 of 17
    64GB is the sweet spot for me, since my photos, videos, and music are in the cloud, But since they dropped this size I had to go to 128GB.
    matthere
  • Reply 4 of 17
    Think how many more phones they would have sold if they actually had the PLUS at the stores. Apple shot themselves in the foot big time on this one. It's not like the past where you buy iPhone 7 then turn it in for the PLUS when they get more in "in a few days".

    This time apple warned customers "make sure this is the one you want because 30 days will pass before the stores will get the first PLUS models and you won't be able to swap out".

    This was an exact quote from three different store managers from three different stores. 
  • Reply 5 of 17
    I am waiting the biggest storage I can get. I am coming from a 16 GB iPhone and oh boy I hate it. By the way this is my wife's iPhone. We just swapped. I gave her my Galaxy S6 Edge Plus because I couldn't the bloatware that is Touchwhiz. 
    watto_cobra
  • Reply 6 of 17
    volcanvolcan Posts: 1,763member
    We just swapped. I gave her my Galaxy S6 Edge Plus because I couldn't the bloatware that is Touchwhiz. 
    Good enough for your wife though...
    cali
  • Reply 7 of 17
    calicali Posts: 3,495member
    razormaid said:
    Think how many more phones they would have sold if they actually had the PLUS at the stores. Apple shot themselves in the foot big time on this one. It's not like the past where you buy iPhone 7 then turn it in for the PLUS when they get more in "in a few days".

    This time apple warned customers "make sure this is the one you want because 30 days will pass before the stores will get the first PLUS models and you won't be able to swap out".

    This was an exact quote from three different store managers from three different stores. 
    Screwing fans during launch was the biggest mistake in launch history.
    I wonder if this will kill launch lines/hype next year?

    all the free press....
  • Reply 8 of 17
    razormaid said:
    Think how many more phones they would have sold if they actually had the PLUS at the stores. Apple shot themselves in the foot big time on this one. It's not like the past where you buy iPhone 7 then turn it in for the PLUS when they get more in "in a few days".

    This time apple warned customers "make sure this is the one you want because 30 days will pass before the stores will get the first PLUS models and you won't be able to swap out".

    This was an exact quote from three different store managers from three different stores. 
    I had no chance for the plus on the pre-order day ( Apple Upgrade Program ). I went to Apple.com on Saturday morning ( 9/17 ) at 8am and they had stock. Reserved my 128gb black iPhone 7 Plus. My appointment was @ 11:30am I was in and out within a half an hour. I feel like Apple tried to make the initial shortage right by getting stock into stores the following day.
  • Reply 9 of 17
    volcanvolcan Posts: 1,763member
    jcs2305 said:
    I had no chance for the plus on the pre-order day ( Apple Upgrade Program ). 
    I'm going to wait for the SIM free version. I'm not sure if that can be purchased with the upgrade plan or not, but I've heard that you cannot buy the Verizon version at the Apple store without being an existing Verizon customer. I've had it with AT&T.
  • Reply 10 of 17
    levilevi Posts: 344member
    So many things to pick apart about this analysis. 1) those waiting in line aren't the average consumer - they're hardcore Apple fans (i.e. non-Android users) 2) in store sales vs online sales were down this year - changing preferences and availability being factors 3) online sales data (Slice) showed a 60/40 preference for 7 plus.
    Deelrontcuprofwatto_cobra
  • Reply 11 of 17
    So one of the leading industry analysts gets press for 83 interviews?  
    This would be munster's crew
  • Reply 12 of 17
    83 people??
  • Reply 13 of 17
    Yep that's me, 128 gig for the price of the 32? Hell yeah!


    but that was only for my 7plus because with the camera and processor and larger screen I intend to do different things with it than my 16 gig SE. Which is make calls, get texts, google stuff and get directions. 
    No need for 128 gigs for that. Especially at the previous price points.

    i think the SE and new 128 plus was a one-two punch for Apple. There was pent up demand for a capable small "work" phone on the SE, and a capable larger phone for extracaricular activities with a decent amount of storage at a fair price to do that.
    edited September 2016 watto_cobra
  • Reply 14 of 17
    For the record, Piper Jaffray is an investment bank, not a "financial analyst firm." The analysis is provided to banks' valued customers for free, and is used by their asset managers, but it's not considered a core product or revenue source. 
  • Reply 15 of 17
    RSGinSF said:
    83 people??
    83 people standing in line at an Apple Store waiting to buy an iPhone.

    If you surveyed 83 people standing in line to buy the first copies of Harry Potter and The Deathly Hallows, you'd find the vast majority have read the previous books in the series.
    watto_cobra
  • Reply 16 of 17
    Users are finding out that it is very expensive to use the cloud as your primary hard drive storage for you phone.  8 and 16GB phones were big winners for the carriers revenues!  A big come on "free or no down phones with two year contract plans" resulting in major expense for the owners of the small storage phones.
  • Reply 17 of 17
    qwwera said:
    Yep that's me, 128 gig for the price of the 32? Hell yeah!


    but that was only for my 7plus because with the camera and processor and larger screen I intend to do different things with it than my 16 gig SE. Which is make calls, get texts, google stuff and get directions. 
    No need for 128 gigs for that. Especially at the previous price points.

    i think the SE and new 128 plus was a one-two punch for Apple. There was pent up demand for a capable small "work" phone on the SE, and a capable larger phone for extracaricular activities with a decent amount of storage at a fair price to do that.
    SE available in only in 32 and 64GB models!
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