According to Societe Generale analyst Andy Perkins there is something odd going on. There has been a sudden pick up in sales of the Apple iPhone 5s. The older iPhone model has jumped from contributing just 10% of Apple’s first quarter sales to counting for 20% of sales in the current quarter. That is odd indeed.
Perkins says that when an older model handset starts losing sales, it almost never rebounds, so that makes this very interesting. This information is based on handset exports from contract manufacturers Hon Hai, and Pegatron. Both companies assemble iPhones for Apple.
The $100 lower price point of the iPhone 5s compared to the newer Apple iPhone 6 is at the heart of his concern. The older model is $200 cheaper than the Apple iPhone 6 Plus, so he wonders if the excitement of the new larger screen sizes has already petered out.
Perkins is also concerned that almost everyone who wanted a larger screened iPhone will have bought one by the time the next iPhone model is released later this year. And he doesn’t predict that Apple will come up with anything more enticing to buyers than the increase in screen sizes that were responsible for a big surge in iPhone sales for the fourth quarter of 2014. During that three month period, Apple sold 74.5 million units.
He also doesn’t think that the Apple Watch, which needs to be paired with an iPhone 6 or iPhone 6 Plus, will boost iPhone sales. It all sounds very dire for Apple. This speculation sounds right on point to me, but we will have to wait and see how things play out. I think he may be onto something here. It is an interesting trend to watch.
Source Phone Arena