Apple are trying to swim against the tide of commoditization. They can do it - at a massive cost. They could be like a Burberry and sell fewer clothes at high margins. Fine. The problem is that technology is not clothing. Market share matters. Universality matters. Interoperation matters. Look at MS Office - it's been nigh on impossible to get rid of it in the last two decades, no matter how bad the software gets, because the file format has so much market presence. Look at Macs - still in single digit market share and they have to sell it as being capable of running Windows because so much existing software can't easily be rewritten for MacOS. Trying to artificially prop up margins on the 5C, and even the 5S and the storage capacity markups, is repeating the mistakes of the past. Higher prices for higher value will sell - taking the piss with the 5C won't.
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iPhone 5c Pre-Orders to Begin at 12:01 AM Pacific Time on Friday, September 13
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Apple are trying to swim against the tide of commoditization. They can do it - at a massive cost. They could be like a Burberry and sell fewer clothes at high margins. Fine. The problem is that technology is not clothing. Market share matters. Universality matters. Interoperation matters. Look at MS Office - it's been nigh on impossible to get rid of it in the last two decades, no matter how bad the software gets, because the file format has so much market presence. Look at Macs - still in single digit market share and they have to sell it as being capable of running Windows because so much existing software can't easily be rewritten for MacOS. Trying to artificially prop up margins on the 5C, and even the 5S and the storage capacity markups, is repeating the mistakes of the past. Higher prices for higher value will sell - taking the piss with the 5C won't.
It never should have, but it always was. The first iPhone was for an initiated elite. Not only it was expensive, but you had to travel abroad just to get it. The following surfed on the wave when children of this elite eventually got their hands on it and every rich kid got one. The first plans we had for the iPhone 3G were indeed reserved for rich subscribers: One hand to pay more than $100 a month to get a ridiculously low amount of voice, text, and data.
So much as a status symbol that theft in the subway is essentially targeted at iPhones, even if big fat Samsung phablets are yielded in a significant proportion. Me finding them ugly and impractical doesn't mean they have no value.
I fail to understand why someone, even with disposable income, would upgrade from the 5, just last year's model for which he spent loads of money not even a year ago, and again spend the big cash while the previous model is still perfectly fine. No matter how you put it, if you can afford to lay $800 and more every 10 month for the latest iPhone, you are a part of a somewhat affluent class.
I don't agree on that one. MS Office can readily be dispensed with in most cases. I haven't used it since 2006, and without making any particular effort to achieve this goal. Granted, compatibility with their file format is mandatory. You have to get a bit political as well. Each time you receive an MS Office proprietary formatted-file, ask for the PDF version, or take advantage of people's ignorance and claim your Mac can't read it. I got a few people actually sending PDFs to everyone, since these documents don't have to be edited in many cases.
Depends on where you look for Mac's market share. Here, it's more 1/3 Mac, 2/3 non-Mac PCs. I have a habit of saying that half-decent software do also exist for Mac. Limited software availability is not an argument anymore. Apple succeeded in keeping Macs a premium product, up to luxury. Most people would be able to lay their hands on a decent Mac every 3 year, instead of buying a lower-priced PC every year. Not so much about iPhones. Not only it is incredibly expensive when new, even out of contract Apple wouldn't unlock them, with or without fee. Considering the unreasonable price when compared with the estimated BoM, the could at least give service above Apple's own standards.
You're right, they used to (even if I don't agree). But that's no longer the case. Even kids from low income neighborhoods have them these days. At $100 on contract, they are very accessible.
Exactly. I don't get this obsession with having to have a new phone every year or expecting companies to come out with revolutionary new phones every year. Seems ridiculous.
We will see how 5C sales in 4Q. Smartphone is going the way of fashion this day. Most smartphone can do most of the daily task really well. I have a Samsung Infused now and ready to move to 5S for the better camera. But for pure smartphone ability, I can live with a 4S. My point is that, good or bad, smartphone become a mature technology and the improvement every year is becoming less and less attractive to majority of the consumer. Brand and design will become more important as we move forward. Last year big news was NFC. And so far I don't see any must have NFC app yet. Bigger screen is the last really important technology change that affect majority of smartphone users.
Did you end up trying to pre order from Walmart? I went there Friday and they couldn't get the pre order system to work, even after calling corporate. Just went through Apple.
It is interesting how three days in and the iPhone 5C is readily available (okay, maybe the yellow one not so much---that one was probably low supply due to predicted demand anyway).
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How's that demand for the 5C in relation to every other iPhone release? Pretty slow, right----unless you like YELLOW, then you have to wait (it was probably low on the supply/demand predictions anyway). Are you laughing now? I am!!!
In what way is that interesting? No one ever expected it to sell out. It's just an iPhone 5. Last year's phone, but with a more compelling reason to buy (new colors/design). Going forward it will be a strong seller, and probably far outsell the 5s.
But I don't think anyone including Apple ever imagined that there would be sudden reinvigorated launch day demand for the same phone just slightly cheaper.
hehe, three parts of the discussion.
First, 5C is replacing 4S in last year Iphone hierarchy. So you have to judge 5C sales again last year 4S sales. Looks like Apple Iphone sales is splited between 50%/25%/25% between current gen/curent -1/ currrent -2. So 5C sales should be around 1/2 of 5S sales.
Two, you are judging 5C sales based on whether the first day inventory is sold out or not. But do you know how many first day inventory of 5C is available compare to 4S last year? None of us know. So how do you figure that 5C will sell less than 4S at the comparable time last year? or declare that it is a salse failure? 5C is one smartphone that Apple don't have to worry about suppliers. They can produce as many as 20-30M unit before launch if they see the order float. And don't fool ourselves, a lot of those launch week order are already in. All the telecom and resellers in the first launch cities has to fill their shelf with 5C and 5S and the inventory build up are counted as first day sales. The retail sales coming off Apple store (which also counted in the sales figures) are small compare to the telecom pre-order. So the natural state for 5C is not sold out if Apple add up all the pre-order correctly. In the past, sold out happen because Apple cannot get enough new parts before launch. And that won't happen on 5C (5S may)..
Three. This year the initial launch include China, Canada and Japan Docomo that wasn't there last year. You want to know the base of the market for this additional markets? China mobile and China Unicom has roughly 260M 3G users. Docomo has about 61M 3G users. Don't know about Canada. Just from counting unit sales perspective, more base market will induce more initial sales. And Docomo / Softbank / KDDI in Japan just declared a Iphone war and basically has 0 cost Iphone with contract deal now. The entire Japan mobile industry is about 139M user. The big 3 telecom in Japan just invite everyone of this 139M user to upgrade to Iphone 5s and 5c for free. There is no unlocked market in Japan. So everyone just roll their phone as subsidy is available. Want to guess how much Japan will impact sales?
"Are you laughing now? I am!!!"
Most people I know in Japan have two phones...and the ones I know with iPhones are switching to Sony XPERIA and HTC because they want a bigger screen.
I'm a fan of Apple, but I don't think the 5C will sell as well as many of the MacRoomies think, especially at THAT price.
It think Iphone has 40% of Japan market without Docomo user base' contribution. Now that Docomo carry Iphone 5C and 5S, we are looking at 24M+- iphone sales in Japan in the next few months (however long it take for the user base to turn). And with the price war, some of the existing Softbank/KDDI user will roll to the new Iphone as well.. Experia etc sell well earlier this year because Docomo discount the handset and push for them. But now that Docomo has slashed order for Android based phone for fall for the Iphone 5c and 5s launch, I don't think we will see that again anytime soon..
http://www.iphonehacks.com/2013/03/iphone-5s-production-begins.html
why is apple being so overconfident with this product. pre-orders, seriously?
Second that thought....especially since the pre-orders haven't even moved the shipment dates.
not here. You can't be poor and afford a $80 monthly plan. Of course, it doesn't take into account the thriving black and grey market for iPhones. iPhone theft is a major concern here, and if you can have it unlocked, then nobody will force them to use cell data. I bet carriers don't care about blocking stolen phone access to th network since they hope it will lure these customers into very lucrative contracts.
to be honest, Apple does a wonderfully job making last-year model appear so outdated, even if its not. Objectively speaking, having a faster phone, sometimes with new features, can't hurt. iPhone 3GS user speaking!
On the BoM I'm sure. Not on retail price.Price.
I'm sure Apple is cutting costs whenever it reasonably can.
i don't really know for the US, but here we have among the highest rates in the developed world. People get two lines when they have the money for it, or when it's so cheap it is a no-brainer to have a work and a home line. Say, in China, a primary line is $15, a lighter, secondary one would be $10. No wonder there are the rivalry market for dual-SIM phones. In France you could easily afford to have two lines on different carriers: it is only about $25, data included!
Of course, buying a $800 phone on a 3 or 2-year contract is bound to let a significan chunk to be paid each month. The 5c is so expensive some may start to wonder where Apple is headed, only driven by pure profit and (that's new), apparently market share. The best phone currently is supposed to be a Nokia! For who understands French here, last Saturday's edition of La Sphère (accessible in podcast) featured a rightful bash IMHO of post-Jobs Apple. In one word: unimaginative.
But at that price, I assumed Apple would unlock them for free upon request / termination of contract. But no. If you got it at a high price on contract and still want to use it while your carrier refuses you service after 30 days, you're screwed.
Well, I'm gong to judge you for misspelling "judgment" anyway.
Yeah, Steven Jobs really had an edge over polymaths like Da Vinci and Galileo.
I could give you a list of about 100 famous people in history (and many from present day) who make Jobs looks like an idiot child. Then of course there are the hundreds of thousands (if not millions) of people in the world alive today who aren't famous who are smarter than Jobs was.
Honestly? It should be one of alarm.
...I'm laughing. Are you? The 5C is a failure.
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We REALLY should have made a bet: https://www.macrumors.com/2013/10/1...roduction-as-chinese-gray-market-prices-drop/
Soon, the 5C will be standard $0 down payment in the States. It's nothing in Hong Kong----you can't cover last year's phone in a cheap candy shell and expect anyone would buy it over a 5S at just $100 US more. The 5C hasn't even been on the market for a month, and its demand does not warrant a high supply.
Could you possibly be more clueless?
I don't think its possible. I don't think its possible that anyone could be so delusional, so out of touch, as to paint a fake picture as you have and believe in it.
The 5C is the single most successful rehash of a product of all time. You think Apple could have done anywhere near as well just leaving the 5 on the market at $99 and introducing just the new 5S?
You don't have a clue, and I wouldn't dream of offering you one.
I absolutely agree with you on this in terms of Apple's strategy. However, I don't agree that the 5C is going to keep much traction, and I think its best days are behind it in terms of demand.
Also, the 5C is $99 USD in the States, and even as low as $0 down at some retailers. Outside of the US, where I live in HK, phones are purchased outright, and there's rarely a discount, whether it be Apple, Samsung, or HTC. The 5C was not priced competitively, and perhaps it wasn't meant to be a competitive device. For a device that had 10 variations (5 colors x 2 storage sizes) I think that the fact the phone is so well stocked in all markets is an indication that the 5C's demand is not as high as a "new" and highly marketed Apple product normally is. That's all.
heh heh, so in you mind if Apple only produce 3M 5c since launch and supply constrained mean better demand than they produce 10M 5c buy sold "only" 7M units? Your logic does not make any sense. We have no idea of how many how many 5c is being produced or in the resales channel now. So how do you come to your conclusion? All we know is that supply (5c) - demand (5c) > 0 now and supply (5s) - demand (5s) < 0 for 5s. Sprint gave $100 discount for anyone porting their number to Sprint for both 5s and 5c.. So according to your logic, 5s sales is also problematic???
5c bar of success is 4s sales number last year. If they can sell 10-20% more 5c this year as compare to 4s last year, Apple will do great.
Since you live in HK, why not look at taobao number:
http://s.taobao.com/search?q=%CA%D6...iwaigou&pid=mm_14507416_2297358_8935934&unid=
Looks to me 4s is the best selling handset in Tabao at 34k units per week rate, 5s is number 3 at 18K units per week rate, 5 is number 4, 5c is number 7 at 12K units per week rate.. If 5c can sell 2/3 of the rate of 5s, I think Apple management will be very happy. Anyway you cut it 5c sales is not a problem.
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No one cares. You don't get an iPhone for nothing. Nor should you. The world does not expect that, at all.
Android crap is what you get for next to nothing.