This holiday season is expected to see heavy demand for Apple iPhones.
Strong iPhone sales this season
Apple iPhone sales are expected to surge this holiday season as consumers rush to purchase the newer models. According to CNET, analyst Ming-Chi Kuo from Apple Insider predicted that Apple will sell 71.5 million iPhones during the quarter – representing a 40 percent increase over last year’s sales. Last year, Apple saw a record-breaking 51 million iPhones sold, bringing revenue to $57.6 billion, according to Market Watch. This year, Apple sold 10 million iPhones in the first weekend after it was released. It is obvious that the demand for iPhones is strong.
Kuo expects 60 percent of all iPhone sales for the quarter to be iPhone 6 sales, which means that slightly over half of all Apple customers are foregoing buying the model with the larger screen. Either way, the iPhone 6 offers a 4.7 inch screen that is larger than the 4 inch screen on earlier models. As people increasingly use their smartphones to browse the Internet and make purchases on e-commerce sites however, it is curious that consumers are not gravitating toward the iPhone 6 Plus – the phone with a 5.5 inch screen. Perhaps a modest increase is all that is desired as portability is also important.
According to CNET, Apple’s new phones position the company to compete directly with other smartphones that feature bigger screens like those made by Samsung and Google. Interestingly, some research firms believe that Samsung is the top global smartphone seller, but Kuo upholds that Apple can close the gap and even surpass Samsung this season.
Sales of the iPhone 6 Plus, as per Kuo’s forecasts, will be in the range of 15 million units. The news source mentions that the iPhone 6 Plus is facing supply shortage as well as heavy demand and production problems. The news source noted that final sales will ultimately depend on how quickly Apple suppliers are able to deliver the units.
The holiday season and beyond…
Since the holidays are typically the most active retail spending time of the year, Kuo expects that iPhone sales will decrease after new years. With the majority of consumers making their purchases in November and December, early 2015 will see a slow down. However, after a slight dip in the beginning of the year, Kuo expects sales of the iPhone 5C and 4S to grow during the first quarter of next year, according to CNET. Promotional pricing may help move units and the 4S is expected to be promoted more in emerging markets.
Analyst Brian White at Cantor Fitzgerald commented that this holiday season will be a landmark in Apple history.
“The stars are aligned for Apple to shine bright this holiday,” said White, according to Market Watch.
Apple, similarly to other retailers, uses discounts to move units during the holidays. Last year the company offered discounts through Apple Store Gift Cards and other Black Friday promotions.
Market Watch also mentioned that total spending for mobile devices and other consumer electronics is expected to grow by 2.5 percent this holiday season as per a Consumer Electronics Association report.
It is also noteworthy to mention that Apple Pay is another incentive for consumers to buy new iPhones. The only way consumers can currently get Apple Pay – the new mobile payment technology – is to buy a new iPhone. Apple Pay has caused a stir and many consumers are eager to take advantage of the ease and added security that it adds to making purchases. Ultimately, iPhones have been and will continue to be very popular with consumers.Back To Blog