Synopsis: Where Apple stands in the smartphone market is clear: The iPhone is the one to beat. It's simultaneously a leader in specs and a vanity status symbol. The high end is its territory.
So when shoppers were given the choice between the latest iPhone and the ever so slightly cheaper iPhone 5C, they decided to go big or go home. Data from Consumer Intelligence Research Partners (CIRP) shows that the newest flagship iPhone 5S is outselling the cheaper one by more than two to one.
According to CIRP, the 5S accounted for 64% of total handset sales for Apple in the last days of September. The 5C only took 27% of sales, and the now two-year-old 4S making up the rest.
In some ways, this is good news for Apple. The 5C is cheaper, and presumably comes at a lower margin. Analysts feared that if a lower-margin product ate up some of Apple's own market share, its profit margins would eventually suffer. IHS says that the cost of building and shipping the iPhone 5S is only 30% of the sticker price. That's the gold mine that makes Apple shareholders rich. Then again, there was plenty of reason to accept the lower margins because the higher-end already bought them. Maps with pinpoints indicating which cell phones people use corresponds very well to a map showing income inequality.
Analysis: "But its the latest and greatest! I have to have it now!" Thanks to people like this, Apple is able to continue building its empire. The newest finger print sensitive or touch censored home button and built in iOS 7 is presumably what makes the 5s the best seller. Forget the colors, the 5C doesn't have the button. The way people see these things are what makes Apple and the iPhone as the creme of the crop. It's shiny, it looks cool, and it doesn't work any better than another phone or laptop or computer or tablet. So why do we spend a considerably larger amount of money to have the half eaten infamous apple logo on the back?
I know! I just got the 5 and now the 5s has come out. Part if me knows I don't need to waste money in practically the exact same phone, but at the same time part of me wants the newest thing. Felicia Padilla 5th period
ReplyDeleteHonestly I don't even like the apple iPhone over other smartphones, I only have an IPhone for the status symbol. And it's ridiculous. Of course, the difference is that my iPhone was free and I still have an old version instead of paying tons and tons of money for a new on every time something big and better comes along.
ReplyDeleteI know that iphones aren't any better than smart phones especially because I used to have the note 2 and I loved it but the status of having an iphone makes me feel better. I just got the 5 and already I want the 5s and for what reason I don't know. Even though they all have the same software I just want to be able to say "I have the 5s now" I think its a showing off thing people just want it just to want it. comment 5th period Rhyann lee
ReplyDeleteIt's strange that people are willing to buy almost the exact same phone for so much more money just because it has a couple of new features. Honestly, I am just fine with my iphone4 and I don't see the point in getting a 5c or s just because of new colors or a finger scanner. -Nia Edwards 4th period
ReplyDeleteWell there goes me getting the 5c. Honestly, its the 5c's color that really gets them in the place (obviously) but the smart ones will think hmm, do I want quality? Yes. okay. done. That's what separates the two and that is why the 5s will ultimately out sell the 5c.
ReplyDeleteI think it's a great thing that apple is making products so fast! They contribute to our growing world. Apple has a great marketing strategy by making the world want the next best product, I give into it everytime!
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