Why Apple buyers are primed to pay premium

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Cash-Money

Everyone knows that Apple does a stellar job of getting its users to upgrade to its latest version of iOS, but how does it do at convincing customers to buy its latest iPhones and iPads, rather than settling for cheaper older models?

Very well, and getting better all the time, according to new market research from the Chicago-based Consumer Intelligence Research Partners.

Looking at consumer data for the calendar quarter which ended June 30, CIRP noted that the flagship iPhone 5s accounted for an impressive 62 percent of total iPhone sales in the quarter, while the iPad Air took 52 percent of all iPad sales in the quarter. Why is this significant?

iPhone Was The Most Dominant Smartphone Brand Last Quarter [Analyst]

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cirp

Apple has regained its lead over Android in the battle for U.S. smartphone marketshare, according to the latest report from Consumer Intelligence Research Partners (CIRP).

Going by CIRP’s figures, in the final quarter of 2013 iOS eked out a 2 percent advantage over Android — with Apple capturing 48 percent of the market to Google’s 46 percent.

Every Year, Customers Keep Buying Cheaper And Cheaper iPads

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10922292896_5a04ccd5f0_b

When Apple unveiled the iPad Air back in October, they curiously decided to keep the iPad 2 around for another generation at a $399 price point… the exact same price as an entry-level iPad mini with Retina Display.

In theory, Apple’s idea here seems to have been to price the vintage iPad 2 at a sub-$400 price point so as to have a cheaper 9.7-inch tablet available for educational institutions, budget shoppers and the like. But it looks like no one’s really all that interested, with only one customer in twenty opting to buy an iPad 2 in the latest quarter. Despite this, though, average price of a purchased iPad fell for the second year in a row.

The iPhone 5c Is Driving Customers Into The Arms Of The iPhone 5s

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The iPhone 5c wasn't quite the runaway success we expected.
The iPhone 5c wasn't quite the runaway success we expected.
Photo: Apple

The iPhone 5c isn’t a failure by any means, but even so, it’s not selling as well as most people would have expected, with sales of the iPhone 5s believed to outpace its plastic midrange sibling by as much as three to one. And while it’s true that the iPhone 5c is still selling well enough to make it the second- or third-best-selling smartphone at every carrier, it’s still a middling success compared to the iPhone 5s.

Yet maybe that’s what Apple wants. In fact, maybe Apple realized that by selling the previous year’s phone for $100 less, they were cutting into their own margins by selling what was, in design, a luxury phone at a mid-tier cost. If so, the iPhone 5c is working exactly as designed.