Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

kas23

macrumors 603
Oct 28, 2007
5,629
288
What did Tim Cook say about trying to decipher sales from supply chain leaks? This report fits the narrative of poor iPhone 5c sales but in reality there's no way to tell from this.

He said to "use cation" in interpreting them, which is a very vague response. He was in a position to categorically deny them or deny the importance of them, but he did not.
 

Elbon

macrumors 6502a
Jan 9, 2008
574
367
Boston, MA
What people didn't want a phone that had last year's technology in it? Shocking.

You assume that everyone has the same priorities. Readers of MR.com may know and care about what's inside their phones, but many, if not most, people don't. They buy whatever appeals to them the most when they are ready to get a new phone.

----------

For what it's worth I actually like the 5c, but yes, at the price it's at one might as well go for broke and get the 5s. Even with last years technology and a plastic case Apple couldn't lower the price even by $200? At $300 off contract it'd be a great product.

I agree. It does seem like they could have been more aggressive with the pricing.
 

ValSalva

macrumors 68040
Jun 26, 2009
3,783
259
Burpelson AFB
the customers apple are aiming for do not care about last years tech, which is still great. one word for poor sales, price. consumers were expecting an iphone with a dirt cheap price tag.

But how is this any different than if Apple had just kept the iPhone 5 and made it $99 on contract? I'd think that people who are buying on price don't care if it's last year's model. At least they haven't seemed to in the past. If 5c sales really are lower than expected could it be a consumer aversion to plastic?
 

Krazy Bill

macrumors 68030
Dec 21, 2011
2,985
3
What did Tim Cook say about trying to decipher sales from supply chain leaks? This report fits the narrative of poor iPhone 5c sales but in reality there's no way to tell from this.
If it looks like a duck... walks like a duck...
 

rmwebs

macrumors 68040
Apr 6, 2007
3,140
0
If this had been a Samsung phone that got discounted and production was pulled back on, we would say that it was because the phone was not selling as well as expected. We wouldn't miss a beat.

The iPhone 5c is not selling as well as expected. The 5s is selling better than expected. 5s was ramped up. 5c scaled back.

End of story.

I agree, and it SHOULDN'T have sold as well as expected.

It's essentially the iPhone 4 - not in terms of specs or looks. In terms of position.

Remember, all Apple have done here is replaced what would have been the older model (so iPhone 4s most likely) with a newer model.

Really they shouldn't have expected to sell that many more than the 'old model' does when the 'new model' is released every year.
 

j_maddison

macrumors 6502a
Mar 31, 2003
700
32
Nelson, Wales
This was a product that was all about greed. They would have been better off releasing the product with the same specs as the 5S, minus the fingerprint sensor, it might have had a chance then.

Or released it at a much much lower price point, possibly the same price point the 4S is currently retailing at.
 

Elbon

macrumors 6502a
Jan 9, 2008
574
367
Boston, MA
they shouldn't have expected to sell that many more than the 'old model' does when the 'new model' is released every year.

How do you know what they expected? For all we know, 5c sales could be completely in line with Apple's expectations.
 

iapplelove

Suspended
Nov 22, 2011
5,324
7,638
East Coast USA
But how is this any different than if Apple had just kept the iPhone 5 and made it $99 on contract? I'd think that people who are buying on price don't care if it's last year's model. At least they haven't seemed to in the past. If 5c sales really are lower than expected could it be a consumer aversion to plastic?

No it's cheaper for apple to manufacture the plastic 5C vs the iPhone 5/5S
 

SuperMatt

Suspended
Mar 28, 2002
1,569
8,281
I see a lot of people piling on with negative comments after reading this news. Perhaps people don't remember a few short months ago when similar reports came out - and then Apple sold many more phones than was expected. These supplier leaks have turned out to be complete bollocks in the past. I believe this is still true.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,180
31,236
This past January the WSJ claimed in a front page story that Apple was reducing iPhone 5 components by half because of weak demand. How did that story turn out? This is the same thing that happens every quarter before earnings release. Though this quarter Wall Street seems to be giving a collective shrug. This morning Apple stock is up pre-market.
 

Giuly

macrumors 68040
The problem is that most part of the people in China, India, Southeast Asia and South America don't have iPod Touches to begin with.

Here's a study from Nokia about the User Experience in Latin America, there's also a study about the state of the broadband internet in Brazil which doesn't look better, either. It's too expensive to download 15MB apps via mobile internet, and fixed internet is mainly 56k. South America is mostly a Firefox OS resp. Nokia Asha market (<$100 off-contract), and so is Southeast Asia. "Free on a $99/mo contract" with a monthly wage of around $400 isn't happening, even $399 off-contract will have a hard time there.

If you look at the Play Store numbers, China, India and Russia dominate free apps, while Japan, South Korea and the USA account for 70% of the paid apps. Japan can be excluded here, because NTT DoCoMo prefers to sell Sony Xperias for one reason or another. It's unlikely that you get a foot into the South Korean door, either, unless you send troops. China, India and Russia are candidates for this iPhone, along with every cat and dog in 'murica, Europe, Canada and Australia.

Of all those markets, I see the Europe doing best, for the fact that the iPhone does well in countries where contracts are prevalent (the UK, Germany are among the Top 5 of the paid category on the App Store), but not so much in the rest of Europe where mobile means prepaid - that's mid-range Android and Windows Phone territory, as iPhone 5 starts at $875 off-contract in Europe.

Why would you drop nearly $900 on a 16GB iPhone when you can pick up a 16GB iPad plus a Nokia Lumia 920 for the same amount of money? $499/€399 or less for this iPhone on the other hand is a completely different figure, and that would still be more expensive than the Nokia flagship phone while being intended to compete for the Lumia 620/820 (and whatever their Android equivalents are) market, which are $320/€250.

AFAIR it's rude to quote yourself on the internets, but other than competition being the Lumia 925 at 350€ off-contract today (and Nokia's swan song flagship phone being the Lumia 1020), it still holds true.
 
Last edited:

Shanpdx

macrumors 68030
Sep 24, 2008
2,534
346
Blazer town!
Customers Win!

iPhone 5S is much much much better phone for $100 more than iPhone 5C.

End of story. Apple, now take your plastic and great gross margin!.
 

Velin

macrumors 68000
Jul 23, 2008
1,988
1,863
Hearst Castle
Don't sugarcoat this. This is a pricing strategy failure. Tons of people here said the 5c was grossly overpriced. So did scores of analysts. Price is both too high, and too close to the 5s.

These production cuts confirm the critics correctly perceived how the market would react to the 5c's pricing.
 

Digital Skunk

macrumors G3
Dec 23, 2006
8,097
923
In my imagination
I agree, and it SHOULDN'T have sold as well as expected.

It's essentially the iPhone 4 - not in terms of specs or looks. In terms of position.

Remember, all Apple have done here is replaced what would have been the older model (so iPhone 4s most likely) with a newer model.

Really they shouldn't have expected to sell that many more than the 'old model' does when the 'new model' is released every year.

True and true. Folks that rag and bash plastic were meant to be ignored. Maybe it's because I was an Apple fan in the white plastic days of the Clamshell and OG white iBook, but whatever.

I've never had issues with build material, never cracked a screen on my iPhones iPads, or Galaxies. Dropped the iPad from the top of fridge, not a scratch, dropped the Note 2 down the stairs . . . I mean it went flying, the case flew off, and the back cover almost came off . . . not a scratch.

I don't think the issue really rests in the materials or the innards, just the price.

Okay, maybe Apple couldn't lower the price of the phone by much, then charge the same price as the 5s and give us a 5s with a colorful plastic back.

Just make a black one

Yes, this in deed, and a much deeper Product Red version.
 

rmwebs

macrumors 68040
Apr 6, 2007
3,140
0
How do you know what they expected? For all we know, 5c sales could be completely in line with Apple's expectations.

I dont know. I'm making the same assumption as everyone in this thread, as well as all the so-called 'analysts'.

The assumption is based on the simple question - why would they reduce the number of devices needed from what they originally told the manufacturer to make - the logical answer is they don't need as many, which then draws you to the even more logical answer, that they don't need them because they didn't sell as many as projected.

Of course this all only applies if indeed the article is right, and the suppliers have been asked to reduce how many they make.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,180
31,236
Sorry, sorry... relative to the 5s that is :)

Well yeah. Why should the 5C have the same innards as the 5S? It's not like its the same phone just different sizes. And if Apple had kept the 5 and dropped the price $100 would people be complaining that it didn't have the same innards as the 5S?
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.