Telecom Lead India: Apple iPhone5, despite earlier criticisms, is in the process of creating history for the mobile phone world.
Telecom analysts earlier said Apple iPhone5 did not have the unique qualities of smartphones brought out by its ex-CEO Steve Jobs.
But achieving yet another milestone in the history of Apple, the American devices major sold over five million iPhone 5, three days after its launch on September 21.
On the day of the launch, Apple said “more than 100 million iOS devices have been updated with iOS 6.”
This is a yet another milestone for Apple as the mobile phone users across the globe, even before using or testing the new OS platform, selected iOS 6.
Apple, anticipating poor uptake in America and some of the European nations due to overall business slowdown, made available the iPhone 5 in the US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK. It also stepped up distribution in emerging telecom markets. Apple said “the new device will be available in 22 more countries on September 28.”
Apple’s 2012 target is to launch iPhone 5 in more than 100 countries.
Some of the countries, Apple targeted include: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Liechtenstein, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
This target is aimed at rivaling with Samsung. At present, Apple cannot compete with Samsung and Nokia on low-end smartphone business, but can spread wings to emerging markets. The other versions of iPhone 5 are currently available in emerging markets at cost effective prices.
READ THIS: Aircel has offered free usage plans worth Rs 20,000 for one year for Apple iPhone 5 users in India. Airtel has also offered special voice and data plans.
Telecom analysts later admitted that demand for iPhone 5 exceeded the initial supply and while the majority of pre-orders have been shipped to customers.
Tim Cook, Apple’s CEO, has succeeded in its pricing strategy as well. Nokia’s Lumia range is available for discounted price in the U.S. But iPhone 5 is still available for $199 for the 16GB model and $299 for the 32GB model and $399 for the 64GB model.
Tim Cook faced never ending criticism from telecom analysts for not conquering the Chinese market.
Despite initial pressures, Apple said it has sold over two million of its new iPhone 5 in China, three days after its launch on December 14.
Fitch Ratings’ notes did not attract U.S. telecom operators.
According to Fitch Ratings, the new device will likely create some short-term margin pressure for U.S. wireless carriers, while it could likely lead to greater revenues in the long term.
3Q11 EBITDA margins for major carriers AT&T and Verizon were 39.9 percent and 40.6 percent, respectively. Following introduction of the iPhone 4S in 4Q11, margins declined to 24.7 percent and 35.0 percent. While those declines are notable, in 2Q12, both AT&T’s and Verizon’s margins hit their highest points since 2010, before the smartphone subsidies began taking their toll.
HIS recently said the arrival of the iPhone 5 will spur a rebound in Apple’s smartphone shipments in the third and fourth quarters following a decline in the second quarter. Apple in the second quarter suffered a 26 percent drop in shipments to 26 million units, down from 35 million in the first quarter.
Apple’s decline contributed to a 1 percent contraction in the overall global smartphone market in the second quarter to 135 million units, down from 137 million in the first quarter.
Note: TelecomLead.com’s editors have selected this news based on the impact it created on the industry and the sector.