iPhone5 Shows Strong Sales In December Quarter: Canaccord

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Looking back at the demand for the iPhone 5 in the most recent quarter and the robust demand and short supply of the iPhone 4, it was anticipated that Apple would start making low-end smartphones, considering the popularity of cheap smartphones in the market.

iPhone5 Shows Strong Sales In December Quarter: Canaccord

There’s been endless speculation about Apple’s next step in the smartphone development lately, most of them predicting that the company might start making low-end phones in the near future. However, a statement by Apple’s marketing chief, Phil Schiller, revealed that the company does not intend to make low-end smartphones, he said “this will never be the future of Apple’s products”.

T. Michael Walkley of Canaccord Genuity technology, however, discusses the opposite and argues that Apple could still potentially launch a low-end iPhone owing to the robust demand and short supply of the iPhone 4 in the market.

“We also believe Apple could potentially launch a lower-end iPhone focused on more price-sensitive pre-paid markets in conjunction with larger distributors, as webelieve consumers in markets such as China, Latin America and Eastern Europe would have very strong demand for a more affordably priced 3G iPhone”

Walkley backs his speculation about the low-end Apple smartphones by presenting a global analysis report which indicates a strong sale and global market share gain for low-end and mid-tier 3G and Android smartphones.

Discussing the robust demand for iPhone5, Walkley believes that “the iPhone5 was the top selling smartphone at AT&T/Sprint/Verizon and overall the best selling smartphone in the U.S. market.”

The survey conducted by Canaccord Genuity technology indicates strong sales of the top-selling iPhone 5 at AT&T/Verizon/Sprint and an improved overall supply of the iPhone 5 in essentially all stores offering SKUs of the iPhone 5.

Walkley opined that the the strong iPhone sales and improved supply, combined with Apple’s aggressive iPhone 5 ramp to 240 carriers in 100 countries could have resulted in Apple’s iPhone sale of 48.2 millions units in the December quarter.

According to Walkley, Apple consumers can expect an iPhone5s later this year. And if Walkley’s speculations are correct, a cheaper version of iPhone may arrive in the market in the not-so-distant-future.

Shares of Apple closed at $523.51 yesterday, with a 52 week range of $418.66-$705.07.

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