9 out of 10 New iPhones are the 4S
When Apple (NASDAQ:AAPL) surpassed all earnings expectations earlier this week based on sales of the iPhone, it declined to state just how many of the 37 million iPhones sold were of its new 4S model. As it turns out, almost every 9 out of 10 iPhones sold were the 4S.
The data comes as a result of a survey by Consumer Intelligence Research Partners, and it speaks a great deal to people’s desire for the new iPhone and their faith in Apple as a brand. According to CIRP, 89 percent of new iPhones sold are the 4S. The earlier iPhone 4 made up 7 percent of total sales, with the 3GS making up only 4 percent of sales.
Apple obviously declined to break down numbers out of concerns for harming sales of the older models, which are still readily available due to incentive carrier contracts. Of course, the ready availability of older models makes the fact that people are predominantly buying the 4S all the more impressive. In fact, almost 19 percent of 4S buyers actually upgraded from the iPhone 4, which was only about one year old when the 4S was released in October. Perhaps the most significant and impressive sign was that 42 percent of buyers actually broke contracts to buy the 4S
Additionally impressive was the fact that sales of the higher-end 4S were noticeably strong. While the largest number of iPhones sold were.of the $199 price pointed 16GB model (at 45 percent), 21 percent of sales were for the $399 64 GB model. 34 percent of sales were for the 32GB model. About 19 percent of iPhone 4S buyers subsequently sold their old iPhone on the secondary market. The manufacturing margins on the iPhone 4S are notably large – about 72 percent, with the bill of materials for the phones generally falling between $170 to $220.