Something is suddenly very different about Apple’s cheaper iPhones

By Benjamin SnyderManaging Editor
Benjamin SnyderManaging Editor

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

Photograph by David Paul Morris — Bloomberg/Getty Images

Apple’s iPhone 5S is seeing increased demand in recent months, according to an analyst. And the phenomenon could potentially be eating into Apple’s iPhone 6 and 6 Plus sales.

Societe Generale analyst Andy Perkins told Business Insider:

There appears to have been a pick-up in demand for the older iPhone 5s model. Sales of this model increased from 10% of total units in Q1 FY15 to around 20% by Q2. This is unusual. Normally demand for older models never recovers once the new model is released … this observation remains slightly puzzling.

Notably, the 5S, an older phone with a smaller screen, sells for $100 less than the iPhone 6 and $200 less than the 6 Plus. That makes the increased interest in the 5S problematic for Apple because it makes less from the 5S. Per Business Insider:

The iPhone 6 had a bigger screen than the iPhone 5S, which led to a massive jump in sales. Apple doesn’t have another easy way to upgrade the phone to goose sales.

In January, Apple posted strong earnings of $3.06 per share on revenue of $74.6 billion. Analysts expected the company to post earnings of $2.60 per share on revenue of $67.9 billion.

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