Saturday, September 15, 2012

Apple Loop: iPhone 5 Pre-Order Sell Out, Trade-in Fever and Lightning Strike

Keeping you in the loop about some of the things happening around Apple this week, and since this week saw the long-awaited introduction of the iPhone 5, almost all the news centered around the latest version of the top-selling smartphone.

Apple is telling users that they'll have to wait two-weeks if they order an iPhone 5 today. The device is set to go on sale in the U.S. on Sept. 21.

Pre-orders = blowout. Applestarted taking pre-orders for the iPhone 5 today (it goes on sale in the U.S., Australia,?Canada, France, Germany, Hong Kong, Japan and Singapore on Sept. 21) and within an hour, online shoppers were being told that their orders won?t ship for two weeks (which puts it around Sept. 28 for those of you who don?t have a calendar handy). Analysts are taking this as a sign of blowout demand. Brian White of Topeka Capital Markets, who calls the iPhone 5 the ?biggest upgrade in consumer electronics history,? says the ?shipping times in the first few hours of availability support our thesis. Despite a bigger, better, faster, thinner and lighter iPhone, Apple kept the price points unchanged on the iPhone 5 at $199 (16GB), $299 (32GB) and $399 (64GB). Given that many consumers expected the iPhone 5 to be unveiled last year, the market has been waiting for twenty-seven months for this new iPhone. Given that the iPhone 4S received over 1 million pre-orders in the first 24 hours, we indicated this week that we expected 1.3 million to 1.5 million pre-orders for the iPhone 5.?

Tweet this.??Another leading indicator of iPhone 5 demand may be the number of tweets about the device on the day it was introduced. That?s according to Gene Munster of Piper Jaffray, who?s betting Apple can sell up to 10 million units of the iPhone 5 this month ? and a total of 49 million iPhones (that would include older and new models) for Apple?s fiscal first quarter, which ends in December. Using data from Investing Analytics, Munster said he found that tweets about the iPhone 5 on Sept. 12 were up 460 percent compared to tweets about the iPhone 4S, which was announced in TK 2011. ?the sentiment around iPhone 5 was significantly better than that of the iPhone 4S. Based on the same study by Investing Analytics, we believe that 73% of tweets about the iPhone 5 during launch day were positive compared to 51% for the iPhone 4S launch. We believe this is to be expected given the phone is redesigned while the iPhone 4S was not.?

Out with the old. And yet another indicator of iPhone 5 demand: the number of current iPhone customers who listed their older models for sales on consumer electronics auction sites. Glyde.com, which has handled more than 325,000 transactions since it was launched in Nov. 2009, said it saw a 90 percent increase in iPhone listings ? and a 70 percent increase in iPhone 4S listings on its site in the 24 hours after the iPhone 5 was introduced. Pricing on older iPhones has been ?fairly steady,? Glyde.com says, with prices dropping at most by 3 percent to 5 percent. Here?s the resale value for iPhones in good condition sold through the regular sale option on Glyde.com:

iPhone 3GS, 8GB: $110.25

iPhone 3GS, 16GB: $126.50

iPhone 3GS, 32 GB: $130.50

iPhone 4, 8GB: $203.75

iPhone 4, 16GB: $230.75

iPhone 4, 32 GB: $236.50

iPhone 4s, 16GB: $329.00

Source: http://www.forbes.com/sites/connieguglielmo/2012/09/14/apple-loop-iphone-5-pre-order-sell-out-trade-in-fever-and-lightning-strike/

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