Apple's Sales Team Expressed Fears iPhone Growth Could Stall Due to Android Threat

[MacRumors]

Apple is worried about larger-screened, lower-priced Android phones, according to an internal document shared today in the ongoing Apple vs. Samsung patent lawsuit (via Re/code). The document, which is from the company's sales department, notes that iPhone growth could drop due to competition from smartphones that have larger screens or lower prices than the iPhone.

"Competitors have drastically improved their hardware and in some cases their ecosystems," a member of Apple's sales team wrote in a document that was prepared as part of a fiscal 2014 offsite meeting. Portions of the document were shown Friday to the jury in the Apple-Samsung case.

Other concerns noted in the document included the idea that Android rivals were "spending 'obscene' amounts of money on advertising and/or carrier channel to gain traction" and that mobile carriers had an interest in limiting iPhone sales because of, among other things, the high subsidies they had to pay on the device.

Samsung presented the document during its cross-examination of Apple senior vice president Phil Schiller, who was on the stand earlier today. According to Schiller, the document was not representative of Apple policy and contained information that he largely disagreed with.

Ahead of the release of the iPhone 5c, many thought Apple would enter the low-cost smartphone market for the first time, positioning the phone as an alternative to cheaper Android phones. The iPhone 5c ended up being priced higher than expected and was later described by Tim Cook as a mid-tier device rather than a low-cost option.

Though it is unwilling to sacrifice quality for price even amid fierce competition, Apple is gearing up to compete with Android phones and boost its growth through another arena in 2014 -- larger screens. Rumors have indicated the iPhone 6 may be released in two sizes, 4.7 and 5.5 inches, both of which are larger than the existing iPhone 5s. Analysts have already suggested the release of a larger-screened iPhone could lure back a significant number of Android switchers and cause a massive spike in upgrades.

Other tidbits from the Apple vs. Samsung lawsuit include details on its "Holy War" with Google and the fact that Apple considered dropping its advertising partner, Media Arts Lab, due to its dissatisfaction with its advertising in early 2013.

Following Phil Schiller, Apple senior software engineer and inventor of "Slide to Unlock" Greg Christie has taken the stand, largely reiterating details on the development of the original iPhone, which were first published in an interview with The Wall Street Journal in March.

Article Link: Apple's Sales Team Expressed Fears iPhone Growth Could Stall Due to Android Threat

 

[Kobayagi]

Yes, yes, these notifications are finally working again.

 

[pgiguere1]

I'd be more concerned if they didn't. Of course Android is a threat at the moment and they must keep an eye on it and know how to match it/differenciate them from it.

 

[sniffies]

That's because I'm switching to Android.

 

[mdridwan47]

No ****.

 

[dannyyankou]

They don't have to worry about me.

 

[dumastudetto]

According to Schiller, the document was not representative of Apple policy and contained information that he largely disagreed with.

Good. Nobody wants a obscenely large iPhone screen just because a few novelty Android devices have them.

 

[applesith]

This isn't surprising. Of course Apple is worried about competitors. That's how the world works.

 

[mono1980]

What shocking revelations. Who would have thought that a company would be concerned about their biggest competition.

 

[decimortis]

I love my Nexus 5, but a larger iPhone would pull me back in a heartbeat.

D.

 

[dannyyankou]

Good. Nobody wants a obscenely large iPhone screen just because a few novelty Android devices have them.

But they're so hip.

 

[treborn]

... Fanboys

Well, if an Apple Head cannot buy an iPhone at their carrier, that is fine. That is what Apple.com is for. Plus, there is an app for that. I got my iPhone 5 from my app - no problem. Who wants to wait in line to be harassed by AT&T employees anyway. This would make the iPhone more of a hot item if they are harder to get.

Apple doesn't need NEW customers, just keep satisfying the current customers because we are bringing Apple new customers through our friends and family. I am happy with waiting. I don't want to compromise myself and get a cheaper phone just because it is bigger. It will never do everything Apple does, nor will they provide the same kind of service which Apple does.

 

[Jameslr2015]

I feel Apple should try to change things up a bit or go outside their comfort zone. I think their market is starting to get a little stale.

 

[Dave.UK]

Good. Nobody wants a obscenely large iPhone screen just because a few novelty Android devices have them.

Are you sure about that? Or do you mean YOU dont want a large iPhone?

 

[Nikiaf]

But they're so hip.

Image

It is also worth considering how phones are being used less and less for their originally intended purpose. The phone app is probably the least used app on my errr, phone.

 

[johnnyturbouk]

As soon as apple release a larger screen, the better.

Many folks that i know have left apple, lured by android size factor and the realm of mini-tablets - for e.g. i saw somebody watch an entire film on the train on their note 3! can not really do this with an iPhone!

I personally would quite like a 4.7 - 5inch screen, whilst others may prefer the 5.5" and
others still may prefer the old 4" screen - we are each different with differing needs!

Even i was tempted to switch to the newest note 3, then i saw sense and got the iPhone 5S, glad i didn't swap, as my google nexus is really not used atm... i can't get the hang of android, and am way to ingrained with iOS,i having all apple products.

What i will find comical are the hypocrites who abhorred the first wave of larger android phones will prabaly be the first to buy a new larger iPhone

Don't know about you Luddites, but i can't wait for Ihollo phones to materialise with iOS 9/10

 

[bushido]

But they're so hip.

Image

to be fair, 4.7 would look more like the one in the middle. its not much bigger than a 4.0 iPhone if done right.

also many people do not use their phones to make calls anymore. I have yet to make a single phone call with my secondary phone the Nexus 4 ^^ and only about 6 hours total on my iPhone 5 (i rather text back and forth i hate calling)

 

[blairh]

I absolutely love my Nexus 5 and it costs $300 less than the competition off-contract.

 

[iLilana]

android

tried it ...not interested.

 

[sfwalter]

I'm glad Apple is worried about its competitors. Last thing we need is for Apple to become complacent and rest on it laurels.

Competition is great for the consumer in the end.

 

[UnfetteredMind]

I'm not sure how exactly this figures into the lawsuit. Does Samsung think this is the sole reason Apple is suing for patent infringement? It may encourage them to sue, but if there's no patent infringement, then there's no patent infringement (and if there is, there is).

 

[iUsers]

Apple probably doesn't really care...

I don't think Apple has much to worry about. They make quality devices with a very simple OS that will always appeal to their users. As long as they remain #1 with their camera they will keep even a large number of people who normally wouldn't have stuck around.

I'm sure they will innovate more than just a screen on the new iPhones as well.

 

[gugy]

damn that 5.5 seems too overkill. 4.7 looks good.

 

[iUsers]

I absolutely love my Nexus 5 and it costs $300 less than the competition off-contract.

Same here, but the camera is horrid, and the speakers are sub par to most phones in it's class. Not to mention battery life is mediocre.

 

[Bibbler]

But they're so hip.

Image

Yeah, Apple fans could care less about a quality device at a good value. They just want to be "Hip"...

Enjoy your elegant and magical phone you hipsters!!