Wednesday, October 12, 2011

Apple's Strategic Release of iPhone 4S

When Apple announced the debut of the iPhone 4S last week, disappointment was prevalent, as many looked forward to the release of iPhone 5. But iPhone 4S was a success. Over a million units of the phone was preordered in the first 24 hours of opening. This toppled the record held by the iPhone 4, which saw over 600,000 preorders in the first 24 hours. This time around, the numbers are greater as Sprint joined the group and also sold the phone under its carrier. But the numbers show that clearly, iPhone 4S was not a disappointment.

The judgement of who would actually buy the new iPhone was crucial in the launch of the iPhone 4S, rather than the iPhone 5. Most users of the current iPhone 4 are still under the two-year contract plan, signed around mid-2010. So Apple wasn't even targeting those users hoping to upgrade their phones. In fact, to the 70 million users of iPhone 4, Apple hoped that this wouldn't a spectacular upgrade, so not to disconcert them in being stuck to another year of contract. Instead, Apple hoped to entice users of iPhone 3G and iPhone 3GS users with a huge contrast to their products. At the same time, by making the iPhone 3GS free, Apple also hoped to entice new users to the smartphone market.

Various analysis have predicted that Apple will shatter its own records in the number of iPhone 4S units sold this quarter. That's not bad considering the initial disappointment it received after the showcase of its newest product. Consumers can only guess what will happen when Apple is most likely going to release the next generation of iPhone next summer.

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