Apple Embraces Two Sides of iPhone 5: The Good & The Bad

Apple Embraces Two Sides of iPhone 5: The Good & The Bad
<a href="">JESHOOTS</a> / Pixabay

Apple Inc. (NASDAQ:AAPL) launched iPhone 5 on September 12, and set the first round of preorders in the few select countries to be two days later, which we have covered in several articles. Apple’s most recent iPhone refresh has impacted on several areas in its business, including both good and bad, as far as key units of its business are concerned.

Apple Embraces Two Sides of iPhone 5: The Good & The Bad

According to an analyst report by Barclays PLC (LON:BARC) (NYSE:BCS) Equity Research Unit, Apple Inc. (NASDAQ:AAPL)’s iPhone 5 is set to impact on several disciplines in the tech giant’s business, including both the supply chain, and product line.  Indeed, the research has details of significant impact, which shows that the Tech Industry draws some major benefits from iPhone 5, while some of the company’s products are negatively affected.

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Nonetheless, Apple Inc. (NASDAQ:AAPL) is not complaining of the negatives, which have drawn some bottle necks in iPhone 5 sales, as well as declines in sales from other revenue units, such as the Mac computers. The company is instead focusing on turning these predicaments into opportunities, albeit incurring some more purchase related costs.

As per the number of preorders recorded on the first day of trading, it is quite clear that Apple Inc. (NASDAQ:AAPL) might suffer from short term shortages in stock. However, with its pragmatic strategy of ensuring that the commodity ships to 100 countries by the year’s end, this predicament of unit production will be overcome.

The record preorders promise healthy demand and Apple must be ready for it going forward, which in return swells the cost implications on material purchase, contrary to initial estimates.

The new iPhone 5 can also count on the popularity of its predecessor’s, the iPhone 4s, camera, which is indeed the best choice, if Flickr statistics are anything to go by. While the iPhone 4S camera holds such a massive user base on the picture sharing site, iPhone 5 presents an upgrade of the iPhone 4S, making it even better. Therefore, this means that the demand for iPhone 5 is boosted by its predecessor’s record on Flickr.

Elsewhere, according to, Inc. (NASDAQ:AMZN) statistics, the demand for Mac computers continues to dwindle, as iPhone 5 seems to have become a pillar of attraction, thereby draining customers from its competitors as well as Apple’s other products, such as iMacs and the Mac mini. Barclays equity research analysts are of the opinion that the company could also be readying other products, which would mean more pressure on its Mac line-up.

Additionally, the high demand for the new iPhone 5 is not only promising more revenues to the company, but its is also causing headaches for the sales production department. This has however, been effectively addressed by limiting the number of iPhone 5 units to be sold to a single customer to two. furthermore, the company has gone on to mark iPhone 4S and iPhone 4 as in-stock, at more affordable prices, to try and release pressure on the new device.

In other statistics, Apple Inc. (NASDAQ:AAPL) can also draw some good news from some of its other products, including Apple TV and the App store.  The report notes that Apple TV has gained popularity, and is rising in the rankings on the website, beating close competitor products from Roku. Additionally, the company’s app store continues to attract more downloads, following on the trends of the 30 billion figure, which was reported towards mid June.

Barclays PLC (LON:BARC) (NYSE:BCS)  has maintained its price target of $810 on Apple Inc. (NASDAQ:AAPL) stock, with an upside of $910 and a downside of $535. At the time of this writing, the company’s stock was trading at $701.42 per share, down $0.49, or 0.07% from yesterday’s close.

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