iPhone Demand Exceeds Analyst Expectations
Consumers are so anxious for the latest Apple (NASDAQ:AAPL) technology that they’re willing to break their cellular plan contracts in order to upgrade to the newest model. A report by Consumer Intelligence Research Partners (CIRP) found that 45% of iPhone buyers paid fees to break their previous contracts in order to get the iPhone 4S.
CIRP also found that the iPhone 4 owners tended to come out on top by selling their still sought after iPhone 4 models for as much or sometimes more than their plan cancellation fees.
Of those surveyed, 71% were previous iPhone users while the other 29% switched from iPhone competitors. Of those who made the move, 51% were once Google (NASDAQ:GOOG) Android users, 42% had used a BlackBerry (NASDAQ:RIMM), and 7% jumped from a Palm (NYSE:HPQ) device.
57% of iPhone users surveyed purchased their iPhones at a retail location while the remaining 43% bought their devices online. Through both retail and online avenues, Apple (NASDAQ:AAPL) sold 25% of the iPhones themselves.
The demand for the iPhone 4s has surpassed analyst expectations and the subsequent price drops in the 4 and 3GS models have also increased their demand abroad. CNET cited J.P. Morgan analyst Mark Moskowitz who has increased his fourth quarter iPhone shipment estimates from 25.3 to 28 million.