Apple's Projected September 9th iPhone 6 Announcement: What Will the Impact Be?

Sep 04, 2014

Apple’s Newest Product – iPhone 6

There is no shortage of rumors which always surround the anticipated release of a new Apple product – specifically the iPhone line.  Since its launch onto the scene in June of 2007, the iPhone has been largely looked at as the model of innovation.  While recent years have seen competitors like Samsung proactively adding new features to their products, Apple continues to receive the praise for new add-ons that find their way into each new iPhone that enters the market.  This year is no different.

Before looking at the expected new features, it may be more important to look at the sales trends of the iPhone based on historical data.  The below chart shows historical sales of iPhone since 2007 as well as forecasts sales through the end of calendar year 2014 based on Frost & Sullivan research and Apple’s publicly released data.

iPhone Sales Chart.gif

As shown in the chart, each new iPhone released generates a massive sales spike.  As Apple has added more mobile operators to its list of new iPhone recipients, the spikes have grown larger (total iPhone sales).  Here’s a look at the historical timeline of iPhone releases:

October, 2011.  iPhone 4S

  • Quarterly sales increase:  117.0%.
  • Quarterly revenue increase:  122.4%
  • Quarterly iTunes/Accessories increase:  167.5%

September, 2012.  iPhone 5

  • Quarterly sales increase:  77.6%
  • Quarterly revenue increase:  79.0%
  • Quarterly iTunes/Accessories increase:  16.1% (However, since the device was released in Q3, 2012, much of the accessory sales were in the previous quarter which saw a quarterly increase of 130.6%)

September, 2013.  iPhone 5s/5c

  • Quarterly sales increase:  51.0%
  • Quarterly revenue increase:  66.6%
  • Quarterly iTunes/Accessories increase:  12.2%

September, 2014.  iPhone 6 & Wearable (Frost & Sullivan Projections)

  • Quarterly sales increase:  65.3%
  • Quarterly revenue increase:  75.7%
  • Quarterly iTunes/Accessories increase:  68.2%

A Look at the Expected iPhone 6 Improvements

Along with other features and capabilities that we are completely unaware of, there are several key features that have been rumored.  While some of the features may be only rumors, it’s worth noting that many rumors from past devices have shown up on the announced devices.  The chart below takes a look at those features with a brief analysis of each.

iPhone 6 Features Chart 2.gif

Factors Relating to the New iPhone Release – Potential Challenges

Despite Apple’s previous success in the mobile device market, there are some potential challenge areas that could arise.

  1. Cannibalization of the iPad mini product.  The iPad and iPhone products have remained different products entirely, which has helped to make both successful.  If the rumors hold true, then the iPhone 6 will be expanding to a 4.7” display – and possibly a 5.5” display – in the near future.  As these screens get larger, it is likely that the larger iPhones will inhibit sales of the 7” iPad mini product.
  2. Profitability of the iPhone product.  Apple has been very profitable as a result of well-timed release dates of new products and limited variation of their products in general.  The limited variation of their products have helped Apple maintain a more simplistic support model for their customers.  As the products become more complex, Apple’s profitability could decline slightly on the newer iPhone versions.

Category : Mobile & Wireless

Todd Day

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