When Apple announced the iPhone 4S last week, the company also revealed it would sell a new 8GB version of the iPhone 4 for $99, while the iPhone 3GS, first released in 2009, would be free with a two-year contract. In addition, both AT&T and Verizon lowered the prices of their 16GB and 32GB iPhone 4 models to $150 and $200, respectively.
Analyst T. Michael Walkley with Canaccord Genuity recently conducted a series of checks with U.S. carriers to gauge iPhone sales leading up to this Friday's launch of the iPhone 4S. He found that customers continue to embrace the iPhone 4 and two-year-old iPhone 3GS, even as a new model is set to debut.
His checks also indicated that preorders have been strong for the iPhone 4S, a fact verified by Apple on Monday, when it revealed that 1 million preorders were taken in the first 24 hours of availability. That handily topped the previous single-day preorder record of 600,000 set by the iPhone 4 when it launched in 2010.
The findings by Walkley are consistent with his past findings that previous-generation Apple iOS devices often outsell newer Android products. For example, in May he reported that the iPhone 3GS was outselling newer phones like the HTC Inspire and Motorola Atrix at AT&T stores.
The continued success of the iPhone 3GS, which is only available on AT&T in the U.S., was also tracked by the NPD Group in August, which found that the device was the second most popular smartphone in the U.S. Rather than discontinue the iPhone 3GS this year, Apple opted to keep the legacy device around and offer it for free with a carrier subsidy.
And even as rumors continued to build in the lead-up to Apple's iPhone 4S event, the iPhone 4 remained the top-selling smartphone in the U.S., despite being more than a year old. Apple's iPhone 4 held the top spot at both AT&T and Verizon, outselling the Samsung Infuse 4G, Samsung Charge 4G, and HTC Thunderbolt 4G.
80 Comments
This persistent disconnect between the reality of consumers' embrace of Apple products and the fantasy of certain tech pundits who consistently diss Apple's new products is really extraordinary. At what point are these guys going to finally look themselves in the mirror and ask "how have I become so out of touch with reality and what must I do to understand real-world consumers?"
My guess is that for many of them, that point will never come. They will just become increasingly bitter, focusing their efforts to appeal to a shrinking audience of disgruntled IT workers and aging PC DIYers who are also totally out of touch with reality. Losers.
This persistent disconnect between the reality of consumers' embrace of Apple products and the fantasy of certain tech pundits who consistently diss Apple's new products is really extraordinary. At what point are these guys going to finally look themselves in the mirror and ask "how have I become so out of touch with reality and what must I do to understand real-world consumers?"
My guess is that for many of them, that point will never come. They will just become increasingly bitter, focusing their efforts to appeal to a shrinking audience of disgruntled IT workers and aging PC DIYers who are also totally out of touch with reality. Losers.
Absolutely spot on!
I do think the news that went under the radar at the keynote last week was that you can now get an iPhone 3GS and an iPhone 4 at incredibly reasonable prices. I know an awful lot of young people who want macs and want iPhones but can't afford them because they're too young. They won't always be. When they enter work, it's macs they'll buy. I think Apple have tremendous growth to come from young people lusting after their products after school in Apple stores entering work and having newfound disposable income. Where I live, the security guards have to let school kids in on a one-in-one-out basis! They spend ages on Photo Booth lol. Just check the Photo Booth pictures on a mac in a store and you'll see what I mean!
Having an iPhone 3GS that is free on contract makes it affordable to people to whom it was not affordable a month ago.
It's not all about the shiny new model sometimes, tech world.
Both of my daughters are getting an iPhone 4 for Christmas. Both are using original iPhones. It's the perfect balance of a great phone with all the features they want as well as at the right price.
What amazes me now is how I keep hearing about how Apple needs to have more models and yet they don't get that Apple have introduced precisely that with their "legacy" phones being more than capable of being exactly those models.
Apple gave them more models by the back door but were too dumb to realise it.
My mom isn't big on the latest and greatest devices. She wants an iPhone, but doesn't really have the money to drop $200+ on a phone. Now that the 3GS is free, she's strongly considering grabbing one. The 3GS isn't a bad device - it takes DECENT video and pretty good photos. It's better than her current WinMo phone (Samsung Propel)
the fact the 3GS is free will be a HUGE factor for most people.
the average consumer will understand that the new iPhones are "better" but will not care.
most people would rather have the "free" device than drop $100 or $200 for something that is only better to the power user.....