Top

9 Things We Learned From The US iPhone XS and XS Max Day 1 Launch

At 8:00am Apple and carrier stores country wide opened their doors to welcome customers to the new iPhone XS and XS Max launch, as well the new Apple Watch Series 4. Here is what we learned about the first hours of sales:

  1. The time for huge lines and new launch excitement has passed. People are still coming in to be the first to get a new device, but it is much tamer than in the years past. Only a small amount of Apple enthusiasts still enjoy camping overnight in front of metro Apple stores instead of pre-ordering online. With the ease of online sales, lines are no longer the best gauge of sale success.
  2. The iPhone XS Max won out the initial device sales drive 2-to-1. This is due to many customers upgrading their phone under Apples iPhone Upgrade Program. These customers mostly own the iPhone X and just wanted to get the newest and best device.
  3. Carrier stores were open but saw smaller customer demand. This is likely because most customers who wanted to upgrade were on the iPhone Upgrade Program and had to go to an Apple store instead of their carrier. While carriers are offering good promotions, many customers are also not currently eligible for upgrades yet. Aside from this, customers also won’t wait in line at 8:00 am to get the new upgrade. Sales in this channel will happen more gradually when subscribers have time or are conveniently in an area of their carrier store.
  4. Dealer store checks in southern California and the east coast showed limited or zero supply within dealer channels on launch morning. The week prior, these stores had expected to have devices. This leads us to believe that pre-orders in non-dealer stores were healthy and that many dealers did not get launch-day devices.
  5. Pre-orders within carrier COR (corporate owned retail) stores saw significantly more interest for the XS Max than the XS.
  6. Non-upgrade program customers were switching from older devices (iPhone 6s, 7, 7 Plus). These customers were mainly going for the cheaper and smaller form factor iPhone XS, as it fit more with what they previously were using and were waiting for this upgrade.
  7. 256 GB is the sweet spot for most customers. It provides the best in terms of memory need and price for customers. The 512GB price point was often deemed excessive and too expensive. Stores only had a very limited number of 512GB devices in stock. Many buyers commented that a 128GB may have been a significant volume winner, but early purchases were inclined to go with 256GB over 64GB by a wide margin.
  8. Almost half of all customers in line were getting the Apple Watch Series 4. There was a lot of excitement around the new Apple Watch, a surprising trend which is likely fueled by the new features that the watch offers.  Apple store checks saw rampant Apple Watch interest while carrier channels were much slower.
  9. National retailers did not see pent up demand. BestBuy and Target did not open early like Apple stores and carrier channels. However, store checks did point to Apple launches as being a positive as it draws traffic and accessory sales.

Overall, the first day showed us the power of Apple’s iPhone Upgrade Program driving initial sales over carrier specific deals. Carrier channel offers for switchers were more rational than in past years and there were zero free upgrade programs offered this launch, which will keep opening weekend volumes in check. Many customers will go for the 256GB version, especially if they are upgrading under the Apple program. Carrier sales will most likely pick up over the next few weeks. The Apple Watch Series 4 had a strong launch and shows demand for the new health-oriented features like the ECG.

Maurice Klaehne is a Senior Analyst with Counterpoint Technology Market Research, based out of Boston, USA. He has spent more than five years working as a market researcher and strategy consultant heavily focused on emerging markets and uncovering new growth opportunities for his clients which include business service, CPG, healthcare, and life science companies. Maurice holds a Master’s in International Development and Management from Sweden’s Lund University, and an undergraduate degree in Political Science and International Development from Canada’s McGill University. He is a native German speaker and also speaks fluent French.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.