iPhone 5: Is Apple’s Superstar Set For Failure Already?

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There is a great deal of anticipation surrounding the Apple iPhone 5 launch today and analysts are predicting that Apple will reveal one of the largest upgrades in the history of smartphones. But could Apple mess up?

iPhone 5: How things can go wrong

There is little doubt that when the iPhone 5 is released it will outsell the iPhone 4S. The device is said to be launching on many carriers worldwide and thanks to global distribution it will be hugely successful. However the wild card is the matter of the upgrade cycle for the iPhone.

Many took out the iPhone 4S with two year contracts. This means that they will be half way through these contracts and if they should want to move up to the iPhone 5, they will have large fees to pay. Some carriers will not allow consumers to upgrade until they are at least 20 months into their contract. This means that some will have to hold onto their current device for around 6 months.

The iPhone upgrade cycle is getting shorter and so it may be possible that consumers will overlook the iPhone 5 and wait for Apple to release the iPhone 6. This would leave Apple with shorter demand cycles for iPhones.

Then of course NDP said that Apple will have problems taking market shares with the new iPhone due to the fact that it has already beaten the likes of RIM and Nokia and Apple now share the smartphone market with Samsung who have both benefited from consumers moving away from RIM.

Of course you also have to take into account that the iPhone 5 may not be all that it has been portrayed as. Yes the screen may be increased and it may come with support for 4G, but then again we already have devices on the market with large screens and 4G, so this would not be something special.

Lastly another thing to take into account is the recent moving of Verizon customers to tiered data pricing. While those who are grandfathered into an unlimited data plan are safe, it they wished to upgrade they would lose their unlimited data plan, unless they decide to pay full retail for the iPhone 5. And let’s face it, the iPhone 5 is pretty much as expensive as smartphones get in the market.

We just have a few hours now left to find out if the iPhone 5 will be all that it is cracked up to be or if it has too many obstacles this time around.

Alex customizes his cars and smartphones like its going out of fashion. Jumping between Korean and American, not only does Alex provide in-depth reviews but he usually hangs on to the models for some “real world testing” weeks at a time.