Success of iPhone 5 a double-edged sword

There was plenty of disappointment when there was no iPhone 5 reveal at Apple’s WWDC keynote on Monday even though we had been cautioning for some time that we felt this was unlikely. We have always thought that a release in the fall is more likely and that it looks likely to be another smash hit for Apple but news today suggests the iPhone 5 success could be a double-edged sword.

In just two of our most recent articles we’ve told how we feel the iPhone 5 could have enough about it to remain one of the smartphone leaders but also told how the pressure is really on Apple to come up with something groundbreaking for the iPhone 5, especially with a brand-new design as this was something that disappointed many when the iPhone 4S arrived. However the iPhone 4S has sold and is still selling in huge numbers but it seems that success for the iPhone 4S may impact negatively on sales of the iPhone 5.

With Apple’s continued success in the market we had not even imagined that the iPhone 5 would not be a winner to be frank. However a BGR report tells how the demand for the iPhone 5 may not be as high as expected and blames this on the upgrade cycle. This stems from an industry watcher who feels that the achievements of the iPhone 4S will hurt the launch of the iPhone 5. Walter Piecyk is a BTIG analyst and points to current smartphone subsidies being the cause of millions of customers being locked into contracts, many of whom will not be eligible for fully subsidized upgrades at the time of the iPhone 5’s arrival.

Piecyk also noted AT&T as an example of carriers offering subsidies and wrote in a research note of its offer that has been available for over a year and has allowed customers to pay $250 for an early upgrade if they are six months into their contract. Apparently this offer has seen very little interest and the vast majority of customers still wait until the very day that their upgrade with a full subsidy is available. Piecyk also points out that most AT&T iPhone customers will not qualify for an upgrade at the time when the iPhone 5 (or new iPhone) is released.

Although some people will get round this by buying the next iPhone at full price and then selling on their used iPhone models the iPhone 4S has sold in such massive numbers that it is likely to impact iPhone 5 sales. Of course if many people decide to try to sell on their iPhone 4S they may well find the price they get is disappointing as many others may try the same tactic. All of this would appear to mean that demand may be weak for the iPhone 5 although this may be taking too pessimistic a view in our opinion.

On the other side of the coin a Gotta Be Mobile article looks at whether the iPhone 5 can revolutionize the market in the way the original iPhone did. The feeling is that it can but only if Apple come up with something truly groundbreaking for the next iPhone. It then goes on to details some ideas, which could help the iPhone 5 straight to the top of the competition.

These factors include more location awareness, a decent mobile payments system, improved Siri, (we already know that enhancements to Siri are coming with iOS 6), an even easier interface, battery life that excels, a trailblazing camera set up, more iPad and iMac integration and maybe even two iPhone models offering a choice to suit everyone. It also seems likely that this iPhone iteration will be the first to be 4G LTE-equipped.

Of course many of us are already expecting some of these to be included on the iPhone 5 but it really is down to Apple now to come up with the goods and impress us all. Do you think Apple can come up with something really innovative for the iPhone 5 that could make it a must-have smartphone? What do you think about the analysts report saying there will be weaker demand for the new iPhone because of the upgrade cycle? We’re really interested to hear from readers about this so please do send us your comments.


22 thoughts on “Success of iPhone 5 a double-edged sword”

    1. Eviltweety_88 says:

      Absolutely! I’m sick of squinting at the screen! Yes, yes,.. Get glasses. But the point is, the 4.5 screen on tge Galaxy S2 is easier to read. Once that goes s HD, many are going to be tempted. Using both phones, I truly think that the Android seems more intuitive (for saving contacts, doing things the phone is supposed to do). Not an Apple hater, just observations between screen sizes and use.

      1. ringsgeek says:

        So true!  Actually though, I have grown sick of Apple over the years I’ve used them: 30% commission on every single app sold, walled garden approach, superiority complex, arrogance, sueing anyone who even remotely suggests competition, the bottleneck that is iTunes, overpriced overpriced overpriced, ego-stroking products, small screen, “it just works” and “magical” references when it’s a bunch of crap (Macs and Apple products break down too – my iPhone has frozen a few times, come on), no Flash on a phone, behind the times on innovation, offering incremental upgrades, blah blah blah.  They used to be the pioneers but they’ve taken the way of Cain.  They’re so hellbent on insisting that they’re the best that they pursue these witch hunts against Samsung and HTC and LG and everyone who threatens to knock them from their lofty perch.  If they only realized how good and beneficial competition is – it begets new and exciting products that we can all enjoy, and it stimulates growth and progress.  Competition is GOOD, Apple…you are NOT.

  1. imaginarynumber says:

    I have no doubt that the next iphone will become the best selling phone in the world but I do doubt that it will be ground breaking in anyway. Mind you, to date none of the iphones have been technologically revolutionary. What has been revolutionary is Apple’s genius in convincing punters that they want access to features that had been considered the reserve of geeks with Windows Mobile phones.

  2. Applebite says:

    Blah blah blah how many more times are you going to go over the same old rubbish repeating the same thing sure you have covered this a coupe of times in the last week, will be the last time I drop by this site now.

  3. Sparkymarc34 says:

    I’ve just had to pay £50 to upgrade last month and Change tarrif just to get the 4s and my next upgrade is in 2 years which is a bit long compared to others on same tarrif which in a way of having 2 phones on same contract I can upgrade October time but in to minds to upgrade or just cancel and just have 1 as buy time I upgrade in two years a better iPhone be out by then which be better than iPhone 5

  4. Mrwavibor says:

    I had an Android bought in December, 2011, now, 4 months later, I bought iPhone 4s 64gb and I fall in love with it! Can only say that iPhone amazed me, and as much I love my iPhone 4s, I will give it to my wife(she don’t mind if it’s been last model, not a gadget freak), and will buy new IPhone!
    And I’m pretty sure that it will sell great and I’m sure that ppl in Apple will amaze us again! :))

  5. D0959 says:

    I’m personally waiting for the 5. I have had the 4 for 2 years and I am due an upgrade very soon. If there is no 5 this year then I will be forced to upgrade to something else…. I’m sure I’m not the only person with this view. Apple will lose even more customers

  6. HookedOnTabs says:

    I have strong personal hatred for Apple as a company, my stomach turned when I looked at the smug Steve Jobs. Who by the way would have been out of business years ago if Bill Gates had not saved his company. But the way Apple over charges their loyal customers for everything is why they have the highest profit margin of any tech company. But the sad thing is, that the majority of Apple consumers buy the product for the name. I almost believe that if Apple wrote iphone on a pack of Camels, millions would buy it. Just because it said Apple. Sad really. I thought when Steve Job died I wouldn’t have to look at his gloating face anymore. Boy was I wrong. Now he is every where. George Bush had that same little weasel look on his face. It always said to me, I can lie to you and there is nothing you can do about it. At least Bill Gates retired and became a humanitarian.

    1. [anonymous] says:

      I find the reason behind Apple popularity is that people often get their first iDevice as a gift from another iDevicer. They then get new Apple products because thu not only work, but they can then integrate with any new iDevices they purchase. Plus, they get the newest software updates for at least 3 years!

    2. Not right. Apple goes that extra meter, extra mile of quality in many aspects. I have owned a samsung galaxy s2 and iphone 4s. The 4s display itself is far superior – not to speak of the camera etc. Sold my S2 and planning to go back to iphone.

  7. [anonymous] says:

    All I could ask for in the next iPhone is maybe even a slightly thinner design and a cool quad-core processor. All my other requests were pretty much fullfilled in iOS 6.

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