Phones Review

iPhone 5 could be outshone by iPhone 4S

Under: Apple iPhone, Business and Stocks
Date: December 15th, 2012

We all know that the iPhone 5 has been another outstanding success for Apple since it was first set free to consumers back in September. It is only in the last week or so that supplies finally caught up with demand so that it is now in stock if you order online and of course there should be plenty more sales in the short time now until Christmas. However it seems that looking at the overall picture, the iPhone 5 could be outshone by its iPhone 4S predecessor.

This is certainly news that will surprise a lot of people especially when considering the iPhone 5 seems to be still flying off the shelves but the latest research implies that the latest iPhone may not achieve as many sales as the iPhone 4S and that overall interest in Apple’s iconic iPhone line could be waning. Certainly for some time it seemed that anyone who had invested in Apple could be sure that their investment would pay off. However although shares peaked at a high of $705.07 in September they dropped over 25% last month, amid insecurity among Apple investors.

Although shares have bounced back slightly since late last month it seems more glimmerings of panic may be on the way for investors following a new report. One analyst, UBS’s Steve Milunovich, has now dropped Apple’s fiscal year 2013 and 2014 estimates as well as cutting back on Apple shares price targets, down from a previous estimate of $780 to $700. For this fiscal year Milunovich also reduced iPhone sales targets by 5 million units and caused further apprehension by saying that some sources in China “do not expect the iPhone 5 to do as well as the iPhone 4S,” according to BGR.

The same analyst also predicts that production of the iPhone 5 could fall to 25 million units in Q1 next year and this would impact sales for the June quarter. We’ve previously discussed speculation of a new iPhone 5S coming next year that may well come in the summer, reverting to Apple’s customary iPhone release timeframe rather than the fall and of course if this happened then Apple would see a stock boost in the summer instead of having to wait until fall.

It’s rather alarming though that Milunovich has downscaled Apple earnings in fiscal 2013 to $47 per share from a previous $51.50 estimate. For 2014 the analyst now sees Apple earnings at $55.85 per share reduced from $62. The suggestion that the iPhone 4S could outsell the iPhone 5 still seems rather odd at this early stage but it makes sense that demand for any product will eventually plateau and maybe these are early indicators that this is happening to the Apple iPhone.

We’d really like to hear what our readers think about this. Do you think that consumer appeal for the Apple iPhone line has already peaked and is now leveling out? If so what do you think Apple can do to rejuvenate the iPhone? Maybe you feel that it’s too early to tell and will only believe the iPhone could be losing popularity if shares continue to fall and production is cut back as Milunovich forecasts? Let us know with your comments.

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  • http://www.facebook.com/EggeDelfDE Delf Egge

    Wait for 5S. There is always something new.

    • http://www.facebook.com/profile.php?id=122607822 Sebastian Strobel

      With that logic I should wait for the iPhone 6. No, no, wait. I mean the iPhone 6s. 7. Yeah. 7 for sure. OF COURSE there is always something new, this is the nature of technological advances; unfortunately, the Apple iPhone 5 is only a marginal improvement over its previous generation. Only Apple could market the ‘new’ phone as “the biggest things to happen to iPhone since iPhone”. What a load of marketing BS. And it seems to be that consumers are becoming aware of this, thankfully.

      • Delf Egge

        I agree with you. (I kept myself covered as to bad or good.) Do we need the innovation? I have the feeling, yes. Just to keep the business wheel turning. I guess it is a challenge for the app designer to always come up with something that is better. Sorry, I cannot see that many consumers are becoming aware of this. But this may only be my short-sighted perspective.

    • Guest

      Apple does not need an increase in product release frequency; they simply need to release products that have more substantial improvements.

  • applebite

    Rather disappointed with my iPhone 5 and have always had iPhones since the first model, and after waiting ages for a jailbreak have just ordered a Galaxy Note 2!

  • http://www.facebook.com/DuranDunkle01 Duran Dunkle

    The iphone lost its novelty years ago. It’s so limited and just to basic. Android is a by far superior operating system. You couldn’t pay me to swap my Galaxy Note 2 for any iphone. It’

    • f.

      I definitly feel u brother

  • smartphone

    i think iphone is for old people. It is so simple and basic.

    • http://www.facebook.com/people/John-Price/1105564256 John Price

      that must be why my wife wants one

  • OrdinaryAmerican

    Anyone besides me think is ironic that a fabulous 7″ tablet can be had for $200.00, and yet a tiny little iPhone can cost $800.00? The word “gouging” comes to mind.

  • Satyan

    I haven’t found any reason to change my iPhone
    4 which is quite adiquate for my needs.

  • Darkeycaine

    Would be nice if iPhone had a screen like the note or a s3

  • http://twitter.com/7777Mojo Chas

    I just got one for my wife. It was free. That said, I prefer my android device but for the simple social media stuff that my wife uses, the iPhone 4s is perfect and it syncs seamlessly with her iPad.

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