Analysts: Apple’s iPhone continues to be the hottest ticket around

“The iPhone 4S wasn’t exactly Apple’s brightest moment. Yet it will probably still outshine the competition this holiday season,” Sinead Carew and Poornima Gupta report for Reuters. “And people seeking to commemorate the legacy of Apple’s iconic co-founder Steve Jobs, who died on Wednesday, may scoop up the last iPhone to be unveiled in his lifetime.”

“‘Store traffic will increase and there’s going to be some sentiment-related purchases,'” said Janney Montgomery Scott analyst Bill Choi,” Carew and Gupta report. “Bill Kreher of Edward Jones, said Jobs place in pop culture will cause a sales boost. ‘But over the long run the products will stand on their merit,’ he said.”

Carew and Gupta report, “Apple’s iPhone — seen as the market’s gold standard — is its highest-margin product and accounts for 40 percent of its annual revenue. It is the world’s biggest selling smartphone… Analysts say Apple will have one of its best holiday quarters on record this year with brisk sales of a cheaper version of iPhone 4 and a free iPhone 3GS on top of iPhone 4S sales to customers who want the latest device.”

“The iPhone 4S remains among the fastest smartphones out there. It will be available on more than 100 carriers by year’s end, and a free-with-a-contract older-generation model will draw in new users, analysts say,” Carew and Gupta report. “Then there’s the ‘Siri’ voice-command software that has pundits gushing over its ease of use versus rivals’ offerings.”

“Jefferies & Co analyst Peter Misek said he received one phone call from a person who told him they would probably get an iPhone 4S to commemorate Jobs,” Carew and Gupta report. “But more importantly, he said, a large number of existing iPhone customers may be eligible for a discounted phone upgrade if they renew with their wireless provider, as their two-year contracts will expire in the next 12 months. ‘The bigger thing is that 50 million to 70 million people will be coming off contract in the next year,’ Misek said.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

21 Comments

    1. I think that most people are trained by the automotive industry to expect that a new car must have redesigned tail lights or new shaped fenders. That industry has progressed at a snail’s pace and shows little innovation.

      Sales will likely be good but not as great as they should be for such a great phone. The iPhone 4S looks the same and people seem to need a visual cue that it is different. Too bad we are so stupid.

      1. You are right, Robert. Many people tend to focus on the cosmetic changes, as they have been taught by the marketers. That way a car company can change a few body panels and lights and leave the internals alone during a “refresh.”

        The iPhone 4 design is appealing to many people. The 4S upgrades the guts and the software. Apple fans are about form *and* function. This was the functional update. Nothing surprising, and nothing disappointing, either. Remember the 3G followed by the 3GS (originally 3G S)? This was the 4 followed by the 4S. The 5 will come in its own good time. Pay no attention to the naysayers. Watch the sales during Oct-Dec and then make your judgment.

  1. “The iPhone 4S wasn’t exactly Apple’s brightest moment. ”
    Standard Anal….yst comment. Do not understand something, do not want to think,,,,, just blurb. Sad.

    Side note. Said by a poster on MDN… I say lets pass it around.

    iPhone 4s…… “iPhone for Steve. ”

    While it does not have anti-gravity or teleportation apps ….. yet…. it does have Siri. I think we are going to find Siri may be the biggest improvement in iPhones for the next 4 years.

    Just a thought,
    en

  2. The iphone 4S is a great refresh. I’m not sure what all the uproar is about. I love the design, and I’m glad they didn’t change the form. It has the A5 chip, Siri, and and awesome camera. iOS5 looks amazing. My white 32 gig, Iphone 4S is on the way.

  3. I only switched to AT&T in 2007 for the iPhone, and have upgraded to each new version ever since, each time at the subsidized price, each time extending my contract (also prefer GSM). Tried to reserve a 4S and ATT has made some “adjustments” to their deal (“the better to serve you”). They say I don’t qualify for subsidized price until after Thanksgiving. So pay an extra $250 more now, or wait over six weeks ( Or wait a few months more for the iPh 5?). Just ATT’s way of saying thank you for faithfully sending them thousands of dollars over the years.

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