Tuesday, July 31, 2012

iPhone 5

Tim Cook recently presented the Apple figures for the 2nd quarter, followed by a decline in the Apple stocks. The sales of the iPhone 4s has gone down, presumably because consumers are awaiting the much debated iPhone 5. According to Apple's latest annual report, they have had a massive growth in the number of iPhones sold. In 2011, 72 million iPhones where sold,  in comparison 40 million units where sold in 2010.

There are rumors that iPhone5 will not be compatible with the existing chargers and accessories. Is this a good idea? In order for Apple to change the input design on their phone they need to convey that this will actually add value to the consumer. This is a challenging task when people already have acquired numerous accessory devices such as protective cases, car chargers et cetera. It will thus be interesting to see if this change will enhance the value consumers see when purchasing a phone.

The iPhone 5?

It will be interesting to see if Apple delivers a result that is congruent with the past years trend. It has been estimated that in 2015 there will be delivered 1 billion smartphones, compared to the 500 million delivered this year. As emerging countries gain the purchasing power to acquire smartphones, Samsung, Google and HTC is expected to see a revenue growth. However, Apple has a symbolic product and should look to keep their margins and price, hence they should not get greedy and pursue the growing markets in emerging economies. I expect to see a change that offers value to customers and that the price level is consistent with the previous iPhones. If Apple can convince the customers that there is an added value, they will see huge growth in accessory sales as well as iPhones. It will be interesting to see if they can achieve over 100 million units sold.


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