Apple, on Tuesday reported its earnings for the third Quarter, in which it sold 26 million iPhones. This is less than the expected 28 to 29 million considering that it sold around 35 million units of iPhone in the second Quarter.
Analysts believe that this is because of the hype that was created by rumors about the release of iPhone’s latest model, iPhone 5 in October this year. Why will prospective customers buy the current model when they knew that its latest version will be released few weeks from now?
Till now, Apple has always enjoyed a tremendously positive response from its loyal customers and Media, whenever they launch a new product, but with the launch of the latest iPhone 4S it wasn’t the same. The iPhone 4S was launched in October 2011 and within a span of just two months, rumors and speculations about the next version were all over the internet and so people held back their desire to buy iPhone 4S, hence hampering its overall sales .
But what will happen if iPhone 5 comes out and people don’t find it considerably improved than its previous version. If Apple doesn’t bring many changes in newer versions, is launching products this fast good?
Creating a huge hype can create two things, either a huge success or a huge disappointment among your fans. This was evident in the movie “The Dark Knight Rises”. The movie was awarded the most anticipated movie of the year award; fans were waiting for this movie for past three years as the legacy created by its prequel The Dark Knight was so huge. When it released the expectations from the movie were obvious and the movie did not disappoint its fans, which resulted in huge box office numbers. But what if the movie had been an average flick. No doubt it would have suffered huge losses, but thanks to great direction, it was well received by awaiting fans.
The same is applicable with Apple, Every time they have launched a product, the fans waited all night long around the Apple Stores in long queues to buy the latest Apple product as soon as possible. But every time their products face scrutiny by its fans and critic alike and they have to produce a better result. Every time they have to push the envelope.
So far Apple is been successful in maintaining secrecy about its products before the launch and Steve Jobs always knew when was the right time to launch the product.
While Tim Cook stays calm about the people’s speculation and said- “I am glad people want the next thing, I’m super happy about that,” he said. “I’m not going to put any energy into getting people to stop speculating.”
Apple’s CEO Tim Cook is of the opinion that the slow sales can be attributed to the slowdown in the economy of various countries in Europe, particularly in the countries like France, Greece and Italy. On the other hand Asian Market, Particularly China showed nearly 50% Growth with $5.5 million in sales.
When asked about its plans for India, Cook said- “I love India but I believe Apple has some higher potential in the intermediate time in some other countries. We have a business there and the business is growing”
While we can only speculate about Apple’s plans, Who knows what Apple has in store for us. As Tom Hanks says in the movie Forrest Gump “Life is like a box of chocolates. You never know what you’re gonna get”.