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: The impressive part
by bassbeast on Wed 25th Sep 2013 14:38 UTC in reply to "The impressive part"
bassbeast
Member since:
2007-11-11

What I'd say is more impressive is how Mr Holwerda managed to make a negative article about the new iPhone when everybody else is talking about how quickly they ran through the stock.

Look I personally don't own an iAnything but even an Android phone user like me will give credit where credit is due and congratulate them on their numbers, but Mr Holwerda seems to have a serious almost rabid hatred for all things Apple. Maybe he is an Android or WinPhone fanboy, maybe he had a bad exp with an Apple device in the past, but in any case the article feels like "two minutes of hate" and unless he is trying to troll for pageviews its really kinda sad as it comes off as sour grapes.

Reply Parent Score: 6

RE[2]: The impressive part
by Neolander on Wed 25th Sep 2013 15:29 in reply to "RE: The impressive part"
Neolander Member since:
2010-03-08

What I'd say is more impressive is how Mr Holwerda managed to make a negative article about the new iPhone when everybody else is talking about how quickly they ran through the stock.

If running through the stock was a measure of market success, becoming successful on any market would be as simple as

1/Coming up with a pessimistic estimate of the amount of buyers
2/Dividing it by ten
3/Producing the resulting amount of devices

Though I believe they actually teach people to do that when they want to give a premium image of their product in marketing courses.

Edited 2013-09-25 15:32 UTC

Reply Parent Score: 6

RE[3]: The impressive part
by Nelson on Wed 25th Sep 2013 17:11 in reply to "RE[2]: The impressive part"
Nelson Member since:
2005-11-29

Its not just running through the stock, its running through the stock of 9 million devices. Thats a very large number.

Reply Parent Score: 3

RE[3]: The impressive part
by bassbeast on Thu 26th Sep 2013 07:40 in reply to "RE[2]: The impressive part"
bassbeast Member since:
2007-11-11

Thanks I so rarely get to use this...WHOOSH, you completely missed the point which is if Apple gave everyone a free iPhone Holwerda would say "Look at how they are trying to lock people into their platform!".

There is pointing out the negatives of a product and then there is fanboys waving their flags and spewing venom and what we have seen here for the past couple of years from Mr Holwerda when it comes to apple is firmly in the latter.

Reply Parent Score: 2

RE[2]: The impressive part
by phoenix on Wed 25th Sep 2013 16:57 in reply to "RE: The impressive part"
phoenix Member since:
2005-07-11

You've completely missed the point. Whoosh!

Reply Parent Score: 1

RE[2]: The impressive part
by CaptainN- on Wed 25th Sep 2013 20:09 in reply to "RE: The impressive part"
CaptainN- Member since:
2005-07-07

There's also the total lack of regard for the idea that Apple (and any company which must market a product to sell a product) has certainly adjusted its sales strategy to account for it's existing stock and ability to deliver them once sold. It's not like they could produce 3 times as many iPhones just because they used 3 times as much marketing to reach 3 times the sales numbers. Then they'd just have a shortage of stock, and egg on their face (and all the financial press hand wringing cause they failed to deliver, yada yada), as well as wasted marketing dollars.

It almost sounds like Thom still believes in the philosophy department's "economics". Business is not philosophy.

Reply Parent Score: 2

RE[2]: The impressive part
by cdude on Wed 25th Sep 2013 21:21 in reply to "RE: The impressive part"
cdude Member since:
2008-09-21

I think he has a point. But the point isn't meaned to be negative. The point is that someone should proper compare, consider context.

First note: Two models.
I think this is not an advantage (or disadvantage) to consider at all when looking at that numbers. Very less individuals would buy both but only one of them. Also the price- and hardware/software differences are not high (enough) to make it magically two times more offer or open complete new markets. The cheaper iPhone is not mid- or low-end but that we knew already. Still I think it had some positive effects just like the new iOS7 design had. Some but not much.

Second note: More markets, potentiell customers.
This isn't linear too cause it depends on the markets. Conditions like how much of the customers have the money (both models premium segment) and are willing to invest at the very first days cause of strong demand? Conditions like brand recogniation (in China lower then in US I would expect) or timing (its holiday season end in china and universities just started again), etc.

Theird note: Still impressive.
As written by Tom its still impressive even if only round about linear upscale rather then an explosive demand. It means there is demand, strong demand, for there products also outside of there core markets. It means they grow and growing is good. Its just not the unexpected super one-hit wonder some like to make it.

Edited 2013-09-25 21:33 UTC

Reply Parent Score: 0