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?
Consumers update their iPhones at a fairly aggressive pace: when a contract expires, usually within two years, most consumers immediately upgrade to another one. But that’s not the way people upgrade their iPhones… in fact, it’s looking like iPads might be, for most consumers, more like Macs, which are replaced every 2-4 years.
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.