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Apple Could Struggle on back of iPhone 5s Sales Increase

News by admin on Thursday April 09, 2015.

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iPhone 5s
iPhone 5s

Apple has huge success, stands atop the tech world, and then analysts get all worried and start spelling doom for the company. It is a cycle that has been playing out for years and now we are getting our first spot of doom mongering regarding the iPhone 6 and iPhone 6 Plus. Andy Perkins, an analyst from Societe Generale says an increase in sales of the older iPhone 5s could be worrying for the iPhone 6 range.

Over the fourth quarter of 2014, sales of the iPhone 5s fell to 10% of all iPhone units sold, because the iPhone 6 was taking hold of the market. However, over the first period of 2015, iPhone 5s sales have actually rebounded to 20% of all iPhone units shipped. It is an impressive feat for the older device, but what does it mean for the iPhone 6 and iPhone 6 Plus, the handsets that replaced the 5s?

Well, Perkins claims that the buzz over a larger screen iPhone may have played out, while he suggests that most people who wanted a big screen "i" device have already splashed out on the iPhone 6 or 6 Plus. The analyst says that he does not think Apple will come up with anything fresh to inject new life into the iPhone range, while he also predicts the Apple Watch to struggle, going against almost all of his peers.

"We do not believe that the Apple Watch will be a major game changer for Apple, at least over the next 12 months," Perkins wrote.

There are several holes in these arguments, no matter how much some people want to hope that Apple's iron grip on the smartphone market slacks. Yes, it is almost unheard of for an old device to rebound once its sales decline, so the iPhone 5s is doing something impressive. However, Apple actually has done this before, the iPhone 4s rebounding and increasing sales several times after it had lost flagship status.

A second tier iPhone device, the iPhone 5s is $100 cheaper than the entry iPhone 6, so it has clearly found a market for those wanting a more affordable ticket into the Apple ride, or even those still craving that small screen. Perkins' predictions are actually rather bold and against consensus, so expect the iPhone 6 and iPhone 6 Plus to continue selling in impressive numbers for the next two periods at least. In other words, he?s wrong.

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