Wednesday 16 November 2011

Consumer Reports recommends Apple's big-selling iPhone 4S

Surprising few, Apple [AAPL] is off to a hideously strong start with the iPhone 4S, which is "selling like crazy" according to the analysts. Meanwhile, this time round, Consumer Reports has recommended the smart Siri smartphone.

Season to be iJolly?
We already know that iPhone 4S sales reached four million on the launch weekend, and, as ever, Apple stores, carriers and other retailers have been seeing regular shortages. Right now it can take up to two weeks to get one online. Apple's retail stores sell out daily.
As I warned in the summer, the iPod nano factor is clearly working in Apple's favor, as consumers rush to get the new device in quickly for themselves, before handing additional models across to friends and family this Christmas season.

"Our retail checks reveal Apple is experiencing daily stock outs at 85% to 90% of the [approx] 30 retail stores we called," said Deutsche Bank analyst, Chris Whitmore, as reported by Barron's.

[ABOVE: Look at the massive growth in iPod sales with the release of the low cost iPod mini (2004) and the subsequent iPod nano.]
Apple-crazy China
This is international: iPhone 4S preorders in Hong Kong sold out inside 10 minutes when the device went on sale last Friday. Apple also has China in its sights, with talk the device may in future be made available via China Mobile, which boasts over 600 million subscribers.
It isn't just the 4S which is selling well, anecdotal reports suggest the now low of free-cost iPhone 3GS is also quietly scooping sales at the more price-conscious end of the market. AT&T sold out of 3GS units shortly after the price change, with company president, Ralph de la Vega telling analysts his company has seen "tremendous demand" for the phone.
Is cheaper better?
Consumer Reports last year panned the iPhone 4, but has come out in favor of this year's model, declaring the device "performed very well in our tests" and observing that this one: "Doesn't suffer the reception problem we found in its predecessor in special tests in our labs."
That flaw, soon dubbed, "Antenna-gate" saw some users suffering a loss of reception signal strength when they held the iPhone 4 on the lower left side when in an area with a weak signal.
This time round, Consumer Reports now "recommends" the iPhone 4S, but does rate the Samsung Galaxy S II, Motorola Droid Bionic, and LG Thrill as better buys, attributing this to their 4G support and larger displays.
The publication does praise Apple's new iPhone -- particularly the camera, processor and Siri, but battery life? "Very good," according to Consumer Reports, though it observes recently-reported software-related problems which Apple is rushing to address.
All told, however, it looks as if Apple's off to a positive start with the iPhone 4S.
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