“Apple Inc.’s newest iPhones are fueling a surge in trade-ins of Android-based smartphones, threatening to loosen Samsung Electronics Co.’s grip on the large-screen smartphone segment as users switch allegiances,” Tim Higgins reports for Bloomberg. “When Apple’s main product, featuring bigger displays and faster chips, goes on sale starting in Australia, they may be best remembered as the generation of iPhones that won over consumers from rival smartphones. Trade-ins of Samsung phones with smartphone reseller Gazelle Inc. tripled last week and about a quarter of potential iPhone 6 buyers are new to Apple’s ecosystem, according to RBC.”
“Buzz has been building since the new iPhones were unveiled on Sept. 9 at an event near Apple’s headquarters, with pre-orders topping 4 million units in the first 24 hours and surpassing earlier releases. A third of Android users polled by Boston-based Gazelle said they’re likely to upgrade to the iPhone 6, with 39 percent saying the bigger screen was driving the decision,” Higgins reports. “Last year, a 10th of the smartphones traded in when the iPhone 5s and 5c went on sale were Android-based devices, according to Chris Sullivan, Gazelle’s CEO. ‘We’re seeing a higher propensity to switch,’ Sullivan said. ‘The combination of the screen size and the functionality’ indicates that ‘this is going to be a strong and compelling product for Android users to switch,’ he said.”
“RBC Capital Markets polled 6,000 consumers and found that ‘an impressive 26 percent of respondents who intend to purchase an iPhone are new’ to Apple’s ecosystem, with the majority coming from Android, Amit Daryanani, an analyst at RBC, wrote in a note to investors,” Higgins reports. “‘This is going to be a nightmare for Samsung,’ Tim Bajarin, an analyst at Creative Strategies Inc., said of the larger-screen iPhones.”
Read more in the full article here.
MacDailyNews Take:
As we wrote back in May:
An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.
Have a nice, toasty iPhone 6/Plus launch day, Samsung!
Don’t settle for less than the best. With Apple’s all new, 64-bit smartphones, the gorgeous 4.7-inch iPhone 6 and the stunning 5.5-inch iPhone 6 Plus, there’s never been a better time to stop settling for chintzy imitations and make the move to the real thing.
Related articles:
Apple posts new how-to guide: Switching from Android phone to iPhone – September 16, 2014
Reviewers fall all over themselves to praise Apple’s 64-bit iPhone 6/Plus – September 17, 2014
iPhone 6, iPhone 6 Plus tested at Disneyland: ‘So badass’ – September 17, 2014
Re/code reviews Apple’s 64-bit iPhone 6 Plus: ‘A statement phone,’ not a ‘plastic toy’ – September 17, 2014
Megapixels mean nothing: Apple iPhone 6 trounces Samsung Galaxy S5 in camera shootout – September 17, 2014
The Telegraph reviews Apple’s 64-bit iPhone 6 Plus: ‘It’s peerless’ – September 17, 2014
TechCrunch reviews Apple’s 64-bit iPhone 6: ‘The best smartphone available’ – September 17, 2014
USA Today’s Baig reviews Apple’s 64-bit iPhone 6/Plus: ‘Smartphone stars’ – September 17, 2014
Walt Mossberg reviews Apple’s 64-bit iPhone 6: ‘The best smartphone on the market’ – September 16, 2014
The Wall Street Journal reviews Apple’s 64-bit iPhone 6: ‘The best smartphone you can buy’ – September 16, 2014
Macworld reviews 64-bit iPhone 6 and iPhone 6 Plus: Bigger is better (in the right hands) – September 16, 2014
Take that judge KOH hats off to you for being a dutiful daughter.
MDN, your take needs editing. It should read:
An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through Judge Koh’s courtroom.
It’s still mind-boggling an American judge would throw an American company under the bus so that a foreign company, known for IP theft, can prosper.
I know. And staying focused on “trade dress” rather than technology IP, a trial by jury is the perfect remedy for a case involving trade dress that sows confusion among consumers (even among Samsung lawyers!). The travesty is that 12 ordinary individuals agreed with Apple’s assertion that Samsung intentionally made their products look like the iPhone, awarding Apple financial compensation and pain to the offender… and then our good judge decides she knows better and reduces the award.
You wonder if a Samsung official didn’t call her up one day and said something like, ” Hi Lucy; I know we’re going to lose this thing — As far as damages and penalties go, I have a number in mind, and whatever amount the court comes in under that number you get the left over.”
Wouldn’t surprise me one iota.
With the predictions of Apple moving 80 million iPhones before the end of the year, I’d have to think there would have to be consumers coming from some additional OS platforms. That’s a heck of a lot of sales for four months or so. Still, it’s amusing how Apple would only have a price target of $108 if they could move that many. I don’t have a problem with that but that would be an awful lot of revenue and it seems like that target price would be compressing the P/E. So, we’ll just have to wait and see what the iMac, iPad and AppleTV can muster up. It’s as though the Mac Pro doesn’t even exist because I never hear much about it. There should be a glut of older iPhones ready for users to pick up at bargain prices and that should help the App Store to pick up revenue. It’ll be nice to see 2014 close out with a bang although I’m not expecting the share price to rise very much.
“This is going to be a nightmare for Samsung…” I like the sound of that – I like it a lot!
If it weren’t for T-Mobile’s broken website making me wait 9 hrs to let me use my JUMP upgrade i would be getting my plus tomorrow. Now I have a vague delivery date of sometime between the 22nd and the 30th to get my plus and forever rid myself of this horrible Galaxy Note 3
When I click on the link, it brings me back here.
Please fix it MDN.
well for some reason, we should also thank Samsung for the competition. one thing we need is someone to challenge Apple to innovate further. dont worry though, with Apple finally taking its stride on the bigger screen game, samsung has no more to go. bigger screen has always been Samsung’s only advantage. now it’s gone.
next up hopefully would be their TV business.