• Apple Needs iPhone 5 To Fend Off Surging Android



    According to a recent survey by Nielsen, 43% of all U.S. smartphone owners have a Google Android phone while 28% of them own an Apple iPhone.

    This gap is certainly large enough for Apple to start worrying about. The most interesting aspect is that this gap has increased over the last 3 months with 56% of smartphone users picking Android phone over just 28% for Apple. The big loser in this game is Research in Motion with only 9% ownership in the last 3 months, but Apple is certainly taking notice of the market share that Android is munching.

    With Apple’s iPhone 5 launch expected early next month, this could provide a nice boost for Apple’s iPhone sales that account for more than 50% of our $510 price estimate for Apple stock. Our price estimate is about 25% above market price.

    Historically sales have jumped on new iPhone launch

    Apple introduced iPhone 4 in June 2010 when it sold 1.7 million iPhones within the first three days of its launch. In the entire June 2010 quarter, it sold around 8.4 million iPhones. [2] This goes to show that the pent-up demand for the new iPhone is usually huge.

    If we consider that Apple would be able to find the same amount of success with iPhone 5 launch, Apple should be able to take market share away from Android come October. We believe that the new iPhone could have faster processor, improved camera, improved graphics performance, faster network technology and potentially thinner and lighter design that could appeal to new iPhone users and drive existing ones to upgrade.

    We also expect additional feature announcements related to the upcoming iOS 5 update and Apple’s iCloud service. These features will be the key if Apple wants to increase its presence in the mobile phone market.

    There has also speculation that Apple could unveil two different versions of iPhone. Some reports suggests a revamped iPhone 4 will be a low cost phone specifically targeted for emerging markets, which could certainly lift its market share. See our recent note: Speculation About New iPhone(s) Lifting Apple’s Stock.
    Comments 13 Comments
    1. mjmacky's Avatar
      mjmacky -
      If we consider that Apple would be able to find the same amount of success with iPhone 5 launch, Apple should be able to take market share away from Android come October
      That's assuming that a bulk of the consumers are new iPhone customers and not a bunch of people "upgrading".

      Edit: the girl on the right is cute
    1. brilman's Avatar
      brilman -
      Quote Originally Posted by ; View Post
      Edit: the girl on the right is cute
      I wonder if she comes in a Android model
    1. ulun64's Avatar
      ulun64 -
      iphone 5 still not going to have flash and HTML5 is still no where in sight.......
    1. iLOVENZB's Avatar
      iLOVENZB -
      @mjmacky, why would that be a issue? A sale is still a sale whether the customer is new or a "collector".

      Spoiler: Show


      Current gen DROID phones are far more featurefull than iPhone 4. They may not look as sexy (except for a certain Samsung model ). Customizability of the DROID OS, root access and a community that actually know what they're doing ... Apple should be shitting themselves.

      @ulun64, good point.
    1. bobbintb's Avatar
      bobbintb -
      Historically sales have jumped on new iPhone launch
      don't most product launches mean increased sales? or at least should.
    1. bonkers's Avatar
      bonkers -
      Quote Originally Posted by bobbintb View Post
      Historically sales have jumped on new iPhone launch
      don't most product launches mean increased sales? or at least should.
      only if the product is worth the money in the first place though i wouldf have thought
    1. Cabalo's Avatar
      Cabalo -
      I heard it will be slimmer and feature a bigger Apple logo.
    1. Skiz's Avatar
      Skiz -
      Quote Originally Posted by ulun64 View Post
      iphone 5 still not going to have flash and HTML5 is still no where in sight.......
      I've been using iPhones since 2007 and while I used to run into Flash sites quite a bit, I rarely see them anymore. And when I do, many offer a non-Flash version of their sites. It's essentially a nonexistent problem nowadays.

      Quote Originally Posted by iLOVENZB View Post
      @mjmacky, why would that be a issue? A sale is still a sale whether the customer is new or a "collector".

      Spoiler: Show


      Current gen DROID phones are far more featurefull than iPhone 4. They may not look as sexy (except for a certain Samsung model ). Customizability of the DROID OS, root access and a community that actually know what they're doing ... Apple should be shitting themselves.

      @ulun64, good point.
      A sale is a sale, but an upgrader does not help market share. Not that Apple is deeply concerned about that at the moment.

      You guys also continuously talk about how Apple should be worried or "shitting themselves". That makes no sense whatsoever. Their products have unparalleled popularity right now. Android may be a popular mobile OS, but it is equipped on dozens of phones. There is no single android phone that comes even remotely close to the popularity of iPhones. Every product they produce sees enormous success. Their stock continues to surge as they beat Wall Streets expectations and more and more people choose to invest. Not to mention being named the most valuable corporation in America in 2011. That's ahead of Microsoft, Walmart, IBM, and even the energy giant Exxon. Seeing as those corporations are listed below Apple on that list and are not seeing the enormous growth of Apple, should they all be shitting themselves as well?

      At this point in the game it makes no sense at all for Apple to be doing anything other than celebrating their unequaled successes.
    1. conan's Avatar
      conan -
      wow a real japan
    1. mjmacky's Avatar
      mjmacky -
      Quote Originally Posted by Skiz View Post
      To those of you who You guys also continuously talk about how Apple should be worried or "shitting themselves"... Apple makes a lot of money and will continue to make a lot of money.
      At this point in the game it makes no sense at all for Apple to be doing anything other than celebrating their unequaled successes. sale of overpriced merchandised, much like any other 'brand' in the world.
      All you needed to say. Not everyone thinks they should be worried. I in fact couldn't care less what the people at Apple marketing and sales think.
    1. megabyteme's Avatar
      megabyteme -
      Quote Originally Posted by mjmacky View Post
      Not everyone thinks they should be worried. I in fact couldn't care less what the people at Apple marketing and sales think.
      Wow, you really are an atheist, aren't you?
    1. Quarterquack's Avatar
      Quarterquack -
      I don't like articles like these. They don't do justice to the success story of Apple. They are cashing bank at a rate faster than everyone else in the market put together. iPhone 5 will still be shit without flash, microSD, a proper filesystem access and direct transfers. But people will still laud the brightness indulgent IPS panel as if it's a trend setter.
    1. mjmacky's Avatar
      mjmacky -
      Quote Originally Posted by megabyteme View Post
      Quote Originally Posted by mjmacky View Post
      Not everyone thinks they should be worried. I in fact couldn't care less what the people at Apple marketing and sales think.
      Wow, you really are an atheist, aren't you?
      Antitheist, which is why I don't prevent myself from speaking out against the manipulations of Apple. They're one of the newest religions so it tends to draw my most immediate attention, sorry scientologists (no I'm not, I'm not sorry you slimy bastards).