On Legacy iPhones And Cannibalization

By continuing to sell legacy iPhones after the debut of the device’s latest iteration, Apple, which has long catered to the higher end of the markets it plays in, is extending its reach to price-sensitive consumers. That’s a great way to spur iPhone adoption, but is it a source of cannibalization as well?

As I noted here earlier this week, Apple sold more iPhone 4 and iPhone 4S units during the launch of the iPhone 5 than it sold iPhone 4 and iPhone 3GS units during the launch of the iPhone 4S (as a percentage of total iPhone sales). To some, that suggests Apple might be losing a number of full-price iPhone sales to consumers who opt to purchase a cheaper legacy iPhone when given the option. And while there’s likely some truth to that, there is plenty of evidence that legacy models are winning Apple new iPhone customers.

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