Older generation Apple (NASDAQ:AAPL) devices, such as the iPhone 3GS and the first-generation iPad, still outsell their latest Android competition according to analyst Michael Walkley with Canaccord Genuity. In a note to investors today, Walkley noted that while Apple’s iPhone 4 is the top-selling smartphone for both AT&T and Verizon in the U.S., the iPhone 3GS still outsells new Android smartphone offerings from AT&T, and the first-generation iPad still outsells non-iOS tablets offered by Verizon.
Interestingly, our April checks indicated continued strong demand for the iPhone 3GS at AT&T and iPad 1 at Verizon, as these older generation products with reduced prices often outsold new Android products. We believe this highlights Apple’s significant competitive advantage, and these older products help Apple offer a tiered pricing strategy at key channels.
Since the release of the iPhone 4 and the iPad 2, predecessors to the two devices have continued to sell at discounted prices. The iPhone 3GS currently sells at $49 at AT&T stores and outsells newer Android smartphones such as the HTC Inspire and the Motorola Atrix.
Walkley found that the iPad is by far the best selling tablet, with competition such as the BlackBerry PlayBook and Motorola Xoom only achieving “modest sales.” 16GB and 32GB models of the iPad 1 sold out in less than two weeks after the debut of the iPad 2 thanks to the price reduction.
The fact that older generation Apple devices continue to sell better than new Android, Windows Phone 7 and BlackBerry releases is a clear sign of the success of the iOS platform. It used to be the case that people would buy second-hand Macs to get their hands on the Mac OS operating system, and now it seems people will settle for older Apple devices just to get their hands on iOS.[via AppleInsider]