Has iPhone frenzy peaked?
iPhone 5 expected to be best-selling smartphone ever
Apple's iPhone 5 is expected to be the best-selling smartphone eve, and some analysts say the hype for the iPhone may never be this big again.
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Alison Kosik
New York
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Apple
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Alison Kosik
New York
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The iPhone 5 rolled out in Apple Stores today to long lines and excited customers.
But as Alison Kosik explains -- some analysts say the hype for the iPhone may never be this big again.
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BEFORE THE IPHONE 5 HIT STORE SHELVES TODAY, IT WAS ALREADY SETTING RECORDS.
LAST WEEK, THE SMARTPHONE GOT 2 MILLION PRE-ORDERS IN ONE DAY.
BUT HOW LONG WILL THE IPHONE'S MIDAS TOUCH LAST?
EXPERTS SAY THE IPHONE 5 COULD TOP SALES' RECORDS FOR A LONG TIME -- MAYBE EVEN FOREVER.
BUT OVER SATURATION REMAINS A CONCERN.
THE IPHONE CURRENTLY DOMINATES THE SMARTPHONE MARKET.
IN 2011 -- IT HAD 45% OF MARKET SHARE.
BY THE END OF THE YEAR -- THAT NUMBER IS EXPECTED TO REACH TWO-THIRDS BECAUSE OF THE IPHONE-5.
AFTER THAT -- ANALYST EXPECT THE IPHONE'S MARKET SHARE TO PLATEAU... HOVERING AROUND THAT SAME LEVEL-- ABOUT 66-PERCENT -- IN 2013, AND EVEN SEVERAL YEARS AFTER THAT.
THERE ARE A FEW THINGS AT WORK HERE...
INNOVATION IN GENERAL IS SLOWING.
FOR EXAMPLE, THE I-PHONE 5 IS AN UPGRADE, NOT A TOTALLY NEW DEVICE.
AND CARRIERS MAKE UPGRADES MORE EXPENSIVE.
THAT'S BECAUSE THEY'RE PAYING A BIG SUBSIDY -- 400-DOLLARS -- TO SELL THE I-PHONE.
SO THEY'RE RAISING ACTIVATION FEES AND PUSHING SOME CUSTOMERS INTO TIERED DATA PLANS.
THAT COULD IMPACT FUTURE SALES.
BUT THE FLIP SIDE TO THAT ARGUMENT IS THE STRENGTH OF THE APPLE BRAND.
IT'S VERY POSSIBLE THAT THE IPHONE 6 AND FUTURE GENERATIONS COULD SET BIGGER RECORDS, BECAUSE APPLE HAS A LOYAL FOLLOWING.
AND AS LONG AS THERE ARE APPLE FANS, THERE WILL ALWAYS BE DEMAND FOR THE IPHONE.
I'M ALISON KOSIK IN NEW YORK.
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