Another reason for Apple’s declining margins: iPhone 4 and 4S are still hugely popular

Apple iPhone 4 Popularity

One of the big financial stories in the tech world this year has been the decline of Apple’s historically high margins that were originally¬†propelled to stratospheric heights by its ever-popular iPhone. But with the high-end smartphone market now over-saturated, Apple has seen demand for its newest iPhone 5 model plateau as budget-minded consumers increasingly choose to buy older models such as the iPhone 4 or iPhone 4S. AllThingsD points us to new research from Consumer Intelligence Research Partners showing that the iPhone 5 accounted for just 52% of all iPhones sold between April and June this year, while the older iPhone 4S accounted for 30% and the iPhone 4 accounted for 18%. It goes without saying that when nearly half the company’s sales come from older, cheaper models then its margins are bound to come under pressure.

Source:
AllThingsD
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