iPhone 5 beneficiaries from rumors

By Daniel Chubb - Jul 28, 2012

Over the years the Apple hype machine has helped the brand grow in leaps and bounds, although when it comes to the iPhone 5 release date and rumors surrounding the launch, who benefits most? Looking at Apple’s financial results it seems the iPhone 5 in 2012 might not favor Apple the most, and it is the belief of some analysts that Verizon and AT&T are the biggest beneficiaries.

The hype around each phone Apple launches is immense, which some of the latest iPhone 5 rumors include speculation over a new connector, a taller form factor that still keeps the width of the 4S model, and a launch in August that had been discarded after Apple’s CEO made a few comments. The biggest change with iPhone 5 would be the connector, and if this rumor is true then it’s the first change to this part of the phone since the first generation.

We looked at the smartphone sales for Verizon and AT&T a few days ago, which revealed not only a good quarter for these two carriers, but also results that surprised some analysts considering we are moving towards the iPhone 5 launch and this created a slowdown in sales for Apple’s current phone. It’s obvious these missed sales hurt Apple’s profits for the last quarter, and this has been the focus of attack for many Apple doubters and an opportunity to explain why Samsung is gaining and will overtake Apple at some point.

Will Samsung produce a single phone that beats the iPhone in terms of sales? It is strange how we keep seeing so-called analysts comparing the iPhone to Samsung, and focusing on the iPhone sales compared to all of Samsung’s smartphones. We agree that Samsung has gained a lot of ground on the iPhone, but there is no single Samsung phone, not even the Galaxy S3, that comes close to sales of the iPhone.

Comscore recently explained that the majority of first-time smartphone buyers pick Android, which is due to a cheaper price than you would see with the new iPhone 5. Again it is fair to say that Android represents an army of phones from many brands, so by everyone comparing Android to iPhone can only signal Apple’s success and position in the smartphone marketplace.

Who do you think the iPhone 5 rumors and hype are benefiting most? It is clear the wireless vendors gain massive profits from growing demand for powerful smartphones, and the likes of AT&T and Verizon want more brands to reach the level of sales they see with the iPhone, but just taking a quick look at Apple’s global turnover shows who is still king and continues to gain on silence on their future plans.

Less choice from Apple creates more desire – Samsung might continue to tackle Apple with an army of smartphones, but all the time there’s one Apple phone each year it will build more hype than all the competitors combined.

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