The Apple iPhone 6 has been making waves as the hot new item on the shelves that everyone wants to have, although there are still questions about it as the holiday season comes around. Apple hopes the iPhone 6 will actually boost holiday spending overall and not detract from it. While the iPhone 6 itself is expected to sell quite well, there are some concerns about how much it might detract from more conventional gift buying.
While Apple iPhone 6 sold extremely well since it was released last month, overall sales actually declined in September. According to the Commerce Department, sales slipped by 0.3 percent last month. That number dropped to 0.2 percent if you do not include automobiles. Neither number was seen as good news, and failed to meet expectations. It was the first decline in sales since January, and it was generally across the boards, with very few exceptions. The most notable exception, of course, came from sales of the Apple iPhone 6.
With facts like that, there are understandable worries by some retailers that while the Apple iPhone 6 itself will surely sell just fine, and how exactly will it impact everything else. The major concern is that the Apple iPhone 6 is going to boost overall holiday spending or not. In fact, there are fears that it might actually detract from overall spending for pretty much everything else. Now, with the holiday season just around the corner, some are nervous about how much sales of the latest big thing, in this case the Apple iPhone 6, will perhaps actually lead to a decline in spending on other potential gifts.
The iPhone 6 is not cheap. There are three different models of it for sale, at three different prices. None of them are cheap, although the price is determined by what model you get, as well as who the provider would be. You can choose either AT&T or Verizon, and you have other options to choose from. You could pay anywhere from $199, $299, or $399 for the Apple iPhone 6, or $299, $399, or $499 for the iPhone 6 Plus. Simply put, the concerns are that once a consumer pays those kinds of prices for it, they might not really have much left for anything else. Or, they might lack the will to buy more.
In the meantime, of course, Apple is raking in the profits. There is research out there that reveals that, all told, it costs Apple roughly $200 to build a 16GB edition iPhone 6, and they then turn around and sell it for $649. Yet, people are lining up, quite literally, to buy them. Still, there are a number of possible factors for that. Inflation fell, and the weather was more accommodating, which serves almost as encouragement to go out and spend more money. Perhaps those are signs that the economy is improving, and consumer confidence is up. That would bode well for holiday shopping.
There is no denying the draw of the iPhone 6. It became Apple’s fastest selling product in history, and once it became available for sale on Sept. 19, it sold over 10 million units in just three days. The release of the iPhone 6 allowed sales of electronics to spike to 20.9 percent last month. Further statistics reveal that men accounted for 63 percent of sales in electronics last month. In the two weeks following the release of the iPhone 6, men between the ages of 26 and 35 increased their spending by 28 percent.
Nobody is questioning whether or not the iPhone 6 will sell for the holidays. Of course it will. That, however, does not answer every concern. The hope is that the Apple iPhone 6 will boost overall holiday spending or essentially hog all the profits, leaving everything else in the dust. It could go either way, depending on what statistics you choose to focus on. Only time will tell.
By Charles Bordeau
Investors.com – Consumers cool on spending
Investors.com -Holiday shopping
International Business Times
Photo by Yutaka Tsutano – Flickr