iPhone 4S a hit or a flop?

The market remained underwhelmed by the latest Apple launch

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iPhone 4S a hit or a flop? iPhone 4 S may still sell well for those that want to upgrade.
By  Georgina Enzer Published  October 5, 2011

Electronics retailer Jacky's has said that it has received several messages from iPhone users on its Facebook wall saying that they will now be swapping to Android devices after Apple's underwhelming iPhone 4S launch in California last night, according to Ashish Panjabi, COO of Jacky's.

Despite the wave of criticism following the launch of the device, Panjabi thinks that the iPhone 4S may still sell well in the UAE.

"The iPhone 4S will probably still be quite successful as there are a lot of enthusiasts who owned an iPhone 4 who'd be looking for a change, as well as many who still have an iPhone 3GS who'd want to transition to a newer model.  In addition, additional features like iMessage could mean several new users moving onto the iPhone 4S who previously were on other platforms. We've seen the same happen with BlackBerry as many users stuck to their RIM device only because of BBM, and iMessage could have the same impact for keeping users invested in the iOS platform," said Panjabi.

With the average iPhone user upgrading their devices usually every time a new Apple iPhone is launched, and since it has been 18 months since the iPhone 4 was released, many of these users could be looking for an upgrade and with no iPhone 5 in sight, the 4S may have to be the answer. However, many may be put off and switch to other devices because the iPhone 4S looks identical to the iPhone 4.

"For users who wanted to change devices because they were more concerned with aesthetics, they may wait for a new form factor in iPhones before upgrading. For enthusiasts or people who were sitting on the fence for a while before moving from rival device or an older iPhone device to the iPhone 4, may make the jump now to the iPhone 4 or iPhone 4S," said Panjabi.

Ovum chief analyst, Jan Dawson said that Apple has been a victim of its own successes, with the hype that usually surrounds its product launches not being realised by a simple phone upgrade. He said that many users may prefer to wait until the next generation iPhone 5.

"Though the announcement was relatively meaty in terms of hardware, Apple has been a victim of the hype that surrounds all of its announcements. With so many false rumours about what it would announce, it was almost inevitable that the announcement itself would disappoint. The hardware upgrades should improve performance considerably and keep the phone competitive with the latest Android and Windows Phone devices, but none will blow users away. This represents a significant upgrade for 3GS owners, but many iPhone 4 owners will be content to stick with what they've got until something less incremental comes along," he said.

In the UAE, the success of the iPhone 4S is also reliant on the data packages given by du and Etisalat.

"Both du and Etisalat have increasingly been focusing on providing better data plans of late and this should hopefully mean we see more people moving onto smartphones like the iPhone 4S. From a content perspective, the UAE has been largely ignored but out of all the platforms that exist, there is probably more content available for the iPhone / iOS devices than for any other platform," said Panjabi.

Apple will continue to sell its iPhone 3GS in international markets, the 3GS, which is over two years old, will be sold at a vastly reduced price, and in the US is being given free with contract packages.

"For a company which prides itself on the quality of its products, this strategy has always made more sense than producing a new, sub-standard device for such markets. The strategy should also keep iPhone shipment numbers growing as ever more first-time iPhone users join the back of the ranks," said Dawson.

Apple's shares fell 5% on the iPhone 4S launch, this scrambled back with the broader market to close at a 0.6% loss, while Samsung and Google shares gained on the news.

2621 days ago

I have my iphone in my hands at least 3 hours a day, it would have to be a new iphone5 for me to change my current iphone4 version, doesn't Apple know people get bored with the look. I simply don't care what mods they have added to the 4s it would have to make a pretty good latte and know its way around a ironing board to get me interested.
The other thing apple and everyone else in the UK seems to forget, is that most iphone contracts are 24mth now with most phone providers only allowing customers to upgrade after the 23month only 30 days before contract due to end before they can renew phone.
I for one fear Apple will bring out the new iphone5 within my 24mth contract period should I upgrade to iphone4s, which means if I took the iphone4s out now and Apple bring out the iphone5 in 18mths then I would still have to wait for 6mths before I could upgrade to new 1phone5.
I feel iphone4s flop heading Apples way, Soooo.... before the flop and due to me being board with current iphone4 and contract due to be renewed, i'm going to sell my iphone4 on ebay and use it to fund a HTC which i'v always thought would be cool on a pay as you go sim... & wait until the iphone5 before I take out another contract, unless the HTC floats my boat then I will stay with them....

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