Apple iPhone 5 16GB Is The Most Popular Model [ANALYSIS]

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September 21, was an eventful day for many countries as Apple Inc. (NASDAQ:AAPL), activated the sales of iPhone 5, in 22 countries. As expected, the event was marked with long cues, with a majority of them being current Apple Inc. (NASDAQ:AAPL) customers.

Apple iPhone 5 16GB Is The Most Popular Model [ANALYSIS]

Following the overwhelming preorder numbers recorded on September 14, Wells Fargo Securities believes that, there is a good chance of emulating this statistics in the rest of the launches, and that every incremental 1 million units of iPhone sold results into $0.23 of EPS, ceteris paribus. The suppliers have shown good appetite for the new commodity and even analysts predict at least 10 million units to be shipped the end of September. Nonetheless, Apple Inc. (NASDAQ:AAPL) wont be getting most of its iPhone 5 buyers from competitors, as a majority are noted to be selling their old devices to finance the new ones.

The demand for the new iPhone 5 device indicates that buyers are more interested in owning it other than going into the details of memory capacity, as they try to fit the expense within their tight budgets. While most analysts have expressed some level of surprise that Apple did not upgrade this area as compared to previous iPhones.

Apple Inc. (NASDAQ:AAPL) will seem to have had a premonition of the popularity of the various models. The cheapest 16GB capacity model commands an overwhelming popularity with 48% of the buyers going for it. The 32GB device attracted 35%; whereas, the most expensive 64 GB model, attratced 17 of the buyers.

The survey showed that a majority of the people upgrading to the current iphone 5 owned an iPhone, with 32%, being those who had iPhone 4s, and 31% the iPhone 4. Additionally, 8% reported to be upgrading from iPhone 3GS, with the rest emanating from competitor devices.

Statistics also indicate that among the early iPhone 5 buyers, 8%, were coming from Research in Motion (NASDAQ:RIMM) (TSX:RIM)’s BlackBerry, while HTC contributed 7%. The company which had temporarily replaced Apple, as the number one smartphone vendor in the U.S, Samsung Electronics Co. Ltd, saw a number of its customers go for the new iPhone 5, representing 6% of the buyers, while Nokia, and LG were represented by 3% each.

Apple iPhone 5 16GB Is The Most Popular Model [ANALYSIS]

Among the carrier networks upgrades, there were no major surprises, as AT&T Inc. (NYSE:T)carried the day as expected. According to the survey, 65% of the people upgrading to iPhone 5 were on the AT&T network, while Verizon Communications, Inc. (NYSE:VZ) was represented by 7%, with Sprint Nextel numbers pegged at 4%.

Up to 24% of the buyers were from other  carrier networks, including international networks. This is a clear indication of the dominance of AT&T network among users of Apple’s iPhone devices, keeping in mind that a majority of the buyers were already iPhone owners, as exhibited in the upgrades statistics, exhibit 2.

The new iPhone 5 got all clear in terms of features, from the responses obtained from the buyers, if simple majority is anything to go by. At least 52% of the buyers indicated that they were happy with all the feature of the new iPhone, while 27%, were very impressed by the new screen size. the weight and thickness of the new device was a major attribute to 10% of the buyers, while 8%, liked the new A6 faster processor, and the LTE 4G connectivity.

Apple iPhone 5 16GB Is The Most Popular Model [ANALYSIS]

A majority of Apple Inc. (NASDAQ;AAPL) own at least one other Apple product, either a Mac, iPad, or an iPod. out of the number surveyed by Wells Fargo Securities, only 18% of the iPhone 5 buyers, were completely new customers.  The securities firm noted that out of the number surveyed, 39% owned both a Mac and an iPad, while 24% owned iPad with no Mac. Additionally, 13% owned a Mac, did not own an iPad, while only 4% reported to own an iPod.

Overall, the new iPhone 5 has confirmed several attribute about Apple Inc. (NASDAQ:AAPL) products. It is quite clear from the number of return customers, Apple Inc. (NASDAQ:AAPL) products are of the highest standard. You don’t get 80% repeat customers, if your products don’t give customers value for their money.

Additionally, it is quite clear that, despite keeping hold of such a large number of customers, the company is also adding to its market share in the smartphone industry by attracting those who never owned an iPhone before. Furthermore, the company is also helping to maintain the customer loyalty of major carrier networks, such as AT&T Inc. (NYSE:T), which will in turn boost partner relationship.


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