"iPhone 5 remains, by far, the most popular iPhone," Apple CFO
Peter Oppenheimer said during the earnings call.
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Continued interest in the iPhone contrasts with disappointing
sales of smartphones from Samsung and BlackBerry --
Galaxy S4 and Z10, respectively -- which has led some to predict
that the market for high-end smartphones is saturated and the
consumers are feeling smartphone fatigue.
"Apple is suffering from iPhone fatigue, while Samsung is
suffering from Galaxy fatigue," Neil Mawston, executive director of
Strategy Analytics, told Bloomberg after Samsung
warned of slow sales of the Galaxy S4.
On the contrary, sales of iPhone 5 were strong even though an
update is widely expected this year. "I don't subscribe to the
common view that the higher end of the smartphone market has hit
its peak," Apple CEO Tim Cook said during the earnings call.
Apple's projection for the upcoming quarter -- revenue between
$34 billion and $37 billion -- is higher than what it projected in
April for this most recent quarter, suggesting Apple is optimistic
about the unannounced new products it will be releasing. "We are
laser-focused and working hard on some amazing new products that we
will introduce in the fall and across 2014," Mr. Cook said in a
press release.
The new products are speculated to be a lower cost iPhone,
different sized iPhones and iPads and possibly a "smartwatch." "I
think the wrist is interesting," Mr. Cook said at an AllThingsD conference in May. "But to convince
people they have to wear something it has to be incredible."
Also due out this fall is iTunes Radio, Apple's play in the
fickle streaming music industry. iTunes Radio will be free to
consumers and will include audio and video ads sold through iAd,
the company's mobile ad network. The music service will also come
preloaded on Apple TV -- Apple set top box -- meaning Apple will be
selling video ads specifically for televisions.
That should be a boon for iTunes, which recorded $4 billion in
revenue in the most recent quarter.
