
2023 Author: Gordon Kinson | [email protected]. Last modified: 2023-11-26 08:36
The new flagship smartphone iPhone 5S and its "plastic" counterpart iPhone 5C are capable of enriching the Cupertin company. Anyway, according to one Wall Street analyst, the profit from the sale of new products will be higher than from the sales of last year's iPhone 5 model.

From the report of Chris Whitmore, an analyst at Deutsche Bank, it follows that the new generation of smartphones will bring Apple more benefits than the previous one. In the case of the 16 GB version of the iPhone 5C, we can talk about 0.5% superiority over the iPhone 5 in terms of the total sales revenue received, and for the iPhone 5S the difference will be at least 1%. As a result, the implementation of new smartphones will prove to be very beneficial for Apple, even despite the current supply problems for the flagship version.
Whitmore draws his conclusions on the basis of IHS analysis, using the differences described in the specifications for the phones and their cost to calculate the potential profit. For example, installing a new fingerprint scanner, sapphire crystal and other accessories increases costs. But they are well offset by a $ 3 reduction in the cost of a Retina display and a $ 5 Sony camera. And so the $ 199 iPhone 5S is a better value proposition than the $ 207 iPhone 5.

IPhone 5S, iPhone 5C, iPhone 5 Margin Comparison
Compared to last year's iPhone 5, the iPhone 5C has dropped significantly in price to $ 174, representing a 16% price cut. And this was achieved, firstly, by using the notorious plastic case, which made it possible to remove $ 13 at once. Secondly, the iPhone 5C has a more economical processor and camera than its predecessor - saving another $ 4.5 and $ 7, respectively. But in fact, the opinions of various analysts differ on the question of what time Apple actuallyproduction costs for each smartphone model. For example, The Wall Street Journal cites a report from UBS that lists $ 213 and $ 156 for the flagship and junior models. The total profit from their sale is estimated at the level of 45-55%, and the difference is explained by the fact that transportation costs were also taken into account in UBS's calculations.

But the possible additional costs of the manufacturer are not able to radically change the situation - the general opinion is that demand for the iPhone 5S will remain stable under any circumstances. Chris Whitmore interviewed employees of 20 Apple sales offices in the US, Australia and the UK - everywhere they say that modest shipments of smartphones arriving from time to time are scattered right there. Sellers advise their regular customers to call in advance, check the availability of devices in the warehouse and come for them early in the morning in order to have a better chance of getting the coveted gadget.

A source in one of the stores told Wimore that once the demand was so high that new smartphones spent barely half an hour in stock before they were all sold out. A similar trend, according to data found on the Web, will be observed for 38, 21 and 24 days for the gold, graphite and silver models of the iPhone 5S, respectively. And the picture is completely different with the iPhone 5C, which are stably and without fuss supplied to all outlets, in a full range - with different variations in body color and memory sizes. At the same time, some Apple partners note that quite a few iPhone 4 and iPhone 4S owners are ready to upgrade to the iPhone 5C model. right now, and not wait, do not understand how long, the appearance of the flagship device in the store.

Chris Whitmore believes that all the factors add up to a single, very pleasing picture for Apple. The meager supplies of the iPhone 5S only whet the appetites of buyers and the unprecedented excitement within 10 days after the start of sales will last, which will naturally ensure a high level of income. Plus the potential benefit from the rumored October iPad 5 redesign - Cupertinos will definitely have a big party at the end of the quarter.
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