This significant shift in the wireless market should benefit Apple Inc. (NASDAQ:AAPL) in a couple of important ways. First, it will allow customers that bought the iPhone 5 a year ago to more rapidly upgrade to the iPhone 5S. Recall that in the first quarter after the iPhone 5 was released, Apple shipped 48 million iPhones across models. The ability to upgrade those consumers early should be a big driver of sales.
The other way that the new wireless plans will help Apple Inc. (NASDAQ:AAPL) sell more phones is that they will remove some of the trepidation that buyers often have when considering a smartphone. If you’re going to be stuck with a certain model for two years, you may be more likely to wait. If you can change your mind in six months, there is far less reason to delay your purchase.
Ultimately, the combination of market saturation and device exhaustion has the potential to create challenges for Apple Inc. (NASDAQ:AAPL) and other smartphone makers. The reduction in time commitment under the new plans may allow Apple Inc. (NASDAQ:AAPL) to avoid slowing sales for at least another product cycle. Heading into the rest of the year, this should put the company in good shape and be a catalyst to drive performance in the stock.
The article How Apple Can Overcome Smartphone Fatigue originally appeared on Fool.com and is written by Doug Ehrman.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.