Android users trade in iPhones: Another blow from Apple to its rivals

Following the release and hot sales of iPhone 6 and iPhone 6 Plus, which hit its competitors hard, it was reported that Apple will soon launch a new recycling and trade-in program to accept other smartphones besides iPhone, such as Android and Blackberry smartphones. Users can use these devices to exchange for gift cards to use when buying a new iPhone. So will this move really increase the sales of Apple iPhone (remember it is iPhone, not just iPhone 6 and iPhone 6 Plus) and pose a substantial threat to Android and other competitors?

First of all, the industry knows that before the release of Apple's new iPhone 6 and iPhone 6 Plus, iPhone sales have been relatively stable. With the launch of iPhone 6 and iPhone 6 Plus, iPhone sales have soared, even surpassing Samsung, which has always been far ahead of it, in terms of shipments last quarter. According to the latest survey released by UBS, 30% of existing Samsung mobile phone users are considering buying iPhone 6. In response to this, Apple CEO Cook said at Apple's earnings conference last quarter: Since the release of iPhone 6 and iPhone 6 Plus, it has triggered the largest "cross-camp switching" craze in the past three years, and many Android users have transitioned to using the larger iPhone. In fact, what we want to explain here is that even when the ASP (average selling price) of mobile phones is higher than that of Android and other ecosystem phones, there are still users of rivals who defect to Apple's iPhone camp.

According to a recent report by Bloomberg, after the launch of iPhone 6, a wave of second-hand transactions emerged in the Android camp, 39% of which was due to the larger screen of the new iPhone. These undoubtedly prove that at least some users who did not buy iPhones before did not do so because of the high price, but because the demand for large-screen phones was not met. Now, this market vacuum has been filled with the launch of iPhone 6 and iPhone 6 Plus. In this case, or in other words, for users who are not sensitive to price, Apple's Android phone exchange plan for iPhone is undoubtedly the icing on the cake, that is, a positive incentive.

Secondly, from Apple's practice of releasing and selling iPhones, after a new iPhone is released, the old iPhone will be sold at a corresponding discount, or even for free. For example, the current contract price of the new iPhone 6 Plus is $299; the iPhone 6 is $199; the iPhone 5S is $99; and the iPhone 5C is free. In this case, if Apple launches the Android trade-in program for iPhones, it will inevitably further reduce the price of iPhones. You know, in the sales structure of iPhones, the shipment volume of old iPhones cannot be ignored.

According to CIRP's survey, the latest iPhone 6 series (including iPhone 6 and iPhone 6 Plus) accounted for more than half of the total iPhone sales in the past quarter. Although this proportion has increased, the proportion of old iPhone sales in iPhone sales may still account for about 20% (due to price cuts). Most of the users who buy these iPhones are price-sensitive users, that is, the main reason for not buying iPhones or choosing Android phones before is price. With the release of the Android phone trade-in iPhone plan, these users will definitely be attracted to iPhones. In fact, not only iPhone 6 and iPhone 6 Plus, but also the latest models of iPhoen5S are hot-selling at the beginning of its release. However, as sales stabilize after the climax, old iPhones will rebound in sales. This may be the time when the Android phone trade-in iPhone plan is most effective, and it is also the key to maintaining stable or even growing iPhone sales.

Therefore, we can conclude that due to the hot sales of iPhone 6 and iPhone 6 Plus, some analysts say that the development model of the Android camp, which has been growing in volume, has already had an impact. Then, with the implementation of the Android phone exchange plan for iPhone, it is bound to have a further impact on the development model of the Android camp. Of course, Apple's iPhone sales may not necessarily surpass the Android camp, but this pressure from Apple will force the Android camp to further reduce prices in order to maintain this growth model, thereby achieving the goal of compressing revenue and profits. It should be noted that most manufacturers in the Android camp are operating at a low profit or loss. If Apple further pressures at this time, it will undoubtedly be a heavy blow from a strategic perspective. In addition to the above-mentioned reduction in the revenue and profit of its opponents, it will also intensify the competition among the Android camps, while Apple itself will benefit from the conflict between the snipe and the clam.

In summary, we believe that Apple's launch of the trade-in program for Android phones for iPhones at this time has considerable strategic significance. If Apple previously launched the iPhone "reuse and recycling" trade-in program to encourage users to trade in old iPhones for iPhone 5, iPhone 5S and iPhone 5C, which led to a significant increase in iPhone sales and set new records in multiple quarters, even among its own iPhones, then this trade-in program targeting competitors should be enough to alert them.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.