The actual iPhone 4S wasn't exactly Apple's brightest moment. Yet it'll probably still outshine the competition this holiday season.
The ones seeking to commemorate the legacy of Apple's iconic co-founder Dorrie Jobs, who died on Wednesday, may scoop up the final iPhone to be unveiled in his lifetime.
The latest smartphone from Apple Inc landed having a thud on Tuesday, outraging fans who had hoped for a revolutionary new design after a wait in excess of 15 months.
But Wall Street analysts were still forecasting that software enhancements -- along with a sprinkling of cool new features -- would keep Apple's leadership of the ever-growing pack of competitors intact.
Then the bombshell fallen when Jobs died Wednesday. Fans abruptly switched from complaining about Apple over the Internet to praising Jobs and his life's work.
Apple was unwittingly pushed into a level bigger spotlight just a day before the Oct. 7 start of pre-orders because of its latest device, and right before its most crucial holidays in years.
The timing may boost sales, but the extent remains to become seen.
"Store traffic will increase and there's going to become some sentiment-related purchases, " said Janney Montgomery Scott analyzer Bill Choi.
But any sales boost would be small in contrast to music sales after the death of an entertainment celebrity like Michael Jackson, he added. Jackson died in '09.
Bill Kreher of Edward Jones, said Jobs place in pop culture may cause a sales boost.
"But over the long run these products will stand on their merit, " he said.
Position above the fray
Apple's iPhone -- seen as the market's gold standard -- is its highest-margin product and makes up about 40% of its annual revenue. It is the planet's biggest selling smartphone, maintaining a slim market share guide on Samsung's Galaxy, at 18. 4 versus 17. 8%.
The iPhone 4S hits store shelves on October 14 in select countries including Japan and america.
It will have to compete for attention with not only a host of Google Android-powered gadgets like Samsung's Galaxy, but additionally new gadgets likes Amazon. com Inc's 199 Fire pill.
But analysts say Apple will have one of its best holiday quarters on record this season with brisk sales of a cheaper version of iPhone 4 and a free iPhone 3GS along with iPhone 4S sales to customers who want the most recent device.
The iPhone 4S remains among the fastest smartphones available. It will be available on more than 100 service providers by year's end, and a free-with-a-contract older-generation model will attract new users, analysts say.
Then there's the "Siri" voice-command software that has pundits gushing over its simplicity of use versus rivals' offerings.
"The iPhone 4S maybe isn't probably the most compelling upgrade, " said Morningstar analyst Michael Holt. "But people about the 3GS and other phones, those people are ready in order to upgrade. It will sell well. "
Jefferies & Co analyst Peter Misek said he received one telephone call from a person who told him they would most likely get an iPhone 4S to commemorate Jobs.
But more to the point, he said, a large number of existing iPhone customers may be entitled to discounted phone upgrade if they renew with their cellular provider, as their two-year contracts will expire in the following 12 months.
"The bigger thing is that 50 million to 70 million people will be coming off contract within the next year, " Misek said.
Apple shares fell heavily following the iPhone 4S announcement. But analysts point out that, even though transition from the iPhone 3G to the 3GS had been similarly incremental, that didn't stop buyers from buying this up in record numbers.
Ticonderoga analyst Brian White called the first outcry "a knee-jerk reaction" and expects Apple to sell 27 million iPhones within the October-December quarter.
Globally, iPhone shipments are likely to end up being 83. 6 million units in 2011, rising to 112. 5 million in 2012 or more to 169. 0 million in 2015, according to the forecast by IHS iSuppli Design.
Total sales of all iPhone models may reach 28 million within the fourth quarter, of which 10 million or more are most likely the new iPhone 4S, Brad Gastwirth, co-founder of ABR Expense Strategy, an independent research firm, said. Apple sold over 20 million from the iPhone 4 in the April-June quarter.
Wider distribution additionally helps. It will be the first iPhone at money-losing third-largest ALL OF US mobile provider Sprint Nextel, which will be under heavy pressure to enhance subscriber numbers from its launch of the costly gadget.
Sprint's plan to offer iPhone customers its unlimited data service for a flat monthly fee also may help.
But the software upgrades -- including voice commands for from sending messages to searching for stock prices -- might be enough to keep people hooked on iPhones, on the surface of the surge in attention around Jobs' personality.
"I don't think they require it but they will get some of that bundle, " said Hudson Square analyst Daniel Ernst.
The ones seeking to commemorate the legacy of Apple's iconic co-founder Dorrie Jobs, who died on Wednesday, may scoop up the final iPhone to be unveiled in his lifetime.
The latest smartphone from Apple Inc landed having a thud on Tuesday, outraging fans who had hoped for a revolutionary new design after a wait in excess of 15 months.
But Wall Street analysts were still forecasting that software enhancements -- along with a sprinkling of cool new features -- would keep Apple's leadership of the ever-growing pack of competitors intact.
Then the bombshell fallen when Jobs died Wednesday. Fans abruptly switched from complaining about Apple over the Internet to praising Jobs and his life's work.
Apple was unwittingly pushed into a level bigger spotlight just a day before the Oct. 7 start of pre-orders because of its latest device, and right before its most crucial holidays in years.
The timing may boost sales, but the extent remains to become seen.
"Store traffic will increase and there's going to become some sentiment-related purchases, " said Janney Montgomery Scott analyzer Bill Choi.
But any sales boost would be small in contrast to music sales after the death of an entertainment celebrity like Michael Jackson, he added. Jackson died in '09.
Bill Kreher of Edward Jones, said Jobs place in pop culture may cause a sales boost.
"But over the long run these products will stand on their merit, " he said.
Position above the fray
Apple's iPhone -- seen as the market's gold standard -- is its highest-margin product and makes up about 40% of its annual revenue. It is the planet's biggest selling smartphone, maintaining a slim market share guide on Samsung's Galaxy, at 18. 4 versus 17. 8%.
The iPhone 4S hits store shelves on October 14 in select countries including Japan and america.
It will have to compete for attention with not only a host of Google Android-powered gadgets like Samsung's Galaxy, but additionally new gadgets likes Amazon. com Inc's 199 Fire pill.
But analysts say Apple will have one of its best holiday quarters on record this season with brisk sales of a cheaper version of iPhone 4 and a free iPhone 3GS along with iPhone 4S sales to customers who want the most recent device.
The iPhone 4S remains among the fastest smartphones available. It will be available on more than 100 service providers by year's end, and a free-with-a-contract older-generation model will attract new users, analysts say.
Then there's the "Siri" voice-command software that has pundits gushing over its simplicity of use versus rivals' offerings.
"The iPhone 4S maybe isn't probably the most compelling upgrade, " said Morningstar analyst Michael Holt. "But people about the 3GS and other phones, those people are ready in order to upgrade. It will sell well. "
Jefferies & Co analyst Peter Misek said he received one telephone call from a person who told him they would most likely get an iPhone 4S to commemorate Jobs.
But more to the point, he said, a large number of existing iPhone customers may be entitled to discounted phone upgrade if they renew with their cellular provider, as their two-year contracts will expire in the following 12 months.
"The bigger thing is that 50 million to 70 million people will be coming off contract within the next year, " Misek said.
Apple shares fell heavily following the iPhone 4S announcement. But analysts point out that, even though transition from the iPhone 3G to the 3GS had been similarly incremental, that didn't stop buyers from buying this up in record numbers.
Ticonderoga analyst Brian White called the first outcry "a knee-jerk reaction" and expects Apple to sell 27 million iPhones within the October-December quarter.
Globally, iPhone shipments are likely to end up being 83. 6 million units in 2011, rising to 112. 5 million in 2012 or more to 169. 0 million in 2015, according to the forecast by IHS iSuppli Design.
Total sales of all iPhone models may reach 28 million within the fourth quarter, of which 10 million or more are most likely the new iPhone 4S, Brad Gastwirth, co-founder of ABR Expense Strategy, an independent research firm, said. Apple sold over 20 million from the iPhone 4 in the April-June quarter.
Wider distribution additionally helps. It will be the first iPhone at money-losing third-largest ALL OF US mobile provider Sprint Nextel, which will be under heavy pressure to enhance subscriber numbers from its launch of the costly gadget.
Sprint's plan to offer iPhone customers its unlimited data service for a flat monthly fee also may help.
But the software upgrades -- including voice commands for from sending messages to searching for stock prices -- might be enough to keep people hooked on iPhones, on the surface of the surge in attention around Jobs' personality.
"I don't think they require it but they will get some of that bundle, " said Hudson Square analyst Daniel Ernst.