Linked by Thom Holwerda on Wed 25th Sep 2013 10:38 UTC
Apple

I've been thinking a bit more about those iPhone 5C/5S weekend sales figures, and while it is certainly impressive, if you compare it to the iPhone 5's first weekend sales figures, it's actually quite a step backwards for Apple. The issue here - something many sites and even Apple itself doesn't want to focus on - is that the iPhone 5C/5S is available to a lot more people than the iPhone 5 was.

The iPhone 5 was available to 720 million people at launch, and sold 5 million units. This is a penetration of 0.69%. The iPhone 5C and 5S, however, are available to 2078 million people, and sold 9 million units, which constitutes a penetration of 0.43%. So, Apple has two new models to advertise and lure consumers with instead of one, and has a huge additional market (China) to address, yet it failed to capitalise on either of these two factors.

What this shows is that while the sales figure is still pretty darn impressive, it's not nearly as groundbreaking if you put it in perspective. Looking at it this way, the so-called record breaking 9 million figure can easily be explained away by Apple almost tripling its launch weekend audience, instead of an increasing popularity of the iPhone.

The only reason I'm writing this is to illustrate how numbers are entirely arbitrary, and it's easy to make silly comparisons and claim an arbitrary victory - or, change perspective a bit and claim arbitrary defeat, as I've done here.

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RE[3]: Comment by MOS6510
by MOS6510 on Wed 25th Sep 2013 12:31 UTC in reply to "RE[2]: Comment by MOS6510"
MOS6510
Member since:
2011-05-12

Yeah, Apple's number are just higher on launch weekends than anyone else's and if they could produce more they'd be even higher.

More interesting is the total number of phone models sold over product lifetime.

Is there that much difference in selling amount X in one weekend vs sell X over 365 days? Maybe Apple users run faster to the shop than non-Apple users, but if sales are the same for another phone it would make both models equally successful.

When it comes to making money it's of course better to sell your stock as quickly as possible and Apple is making a lot of money on this too. They don't need to waste much money storing phones.

Considering this and taking to account that Apple continues to make money off sold iPhones through app and media sales one might wonder if they shouldn't just lower the sales price of the iPhone? They'd still make money even if they didn't sell more of them, but more likely they will sell more.

Being high prices phones leaves a lot of room for competitors to undercut them on price. If iPhones were made cheaper competitors would to go even lower, which could mean it wouldn't be worthwhile anymore. Or competitors need to come with something better, which is a win for consumers.

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