What did you want them to make? A 5s and sell it at the 5c's price? That's not how it works. Older tech sells at lower prices. Newer tech sells at higher prices.
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Apple Cutting iPhone 5c Production at Two Major Suppliers
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What did you want them to make? A 5s and sell it at the 5c's price? That's not how it works. Older tech sells at lower prices. Newer tech sells at higher prices.
I'm glad if way less people buy the 5C than Apple initially expected.
I feel sorry for anyone buying the 5C, its essentially last years phone, but unlike in previous years, it is made even worse/in cheaper production manners since they replaced the more expensive shell parts with plastic. Nice and all if one is into more color variation and not having the device scratch as easily or a back break as easily as if it was made out of glass, but yeah, the non subsidised price for the 5C is just outrageous for what it is.
One can get pretty much any competitor's (best) smartphones from last year for 100-300 less.
(I don't take the contract subsidised price into consideration since in many countries one can get the latest smartphones subsidised at 99$ so then it makes even less sense to get last year's model in stripped down form)
Apple continues their way of course, instead of cutting the price, as long as it still sells halfway ok, they would rather just reduce the amount produced and keep the price up.
Tim Cook is a supply chain expert, he surely knows perfectly well at which point it would be wiser to drop the price some than to just cut down the amount sold.
Since of course the whole idea behind the 5C is selling the old thing at even further reduced production costs at maximised profit range, so yeah, why change that if there's not absolutely a need for it.
I feel sorry for anyone buying the 5C, its essentially last years phone, but unlike in previous years, it is made even worse/in cheaper production manners since they replaced the more expensive shell parts with plastic. Nice and all if one is into more color variation and not having the device scratch as easily or a back break as easily as if it was made out of glass, but yeah, the non subsidised price for the 5C is just outrageous for what it is.
One can get pretty much any competitor's (best) smartphones from last year for 100-300 less.
(I don't take the contract subsidised price into consideration since in many countries one can get the latest smartphones subsidised at 99$ so then it makes even less sense to get last year's model in stripped down form)
Apple continues their way of course, instead of cutting the price, as long as it still sells halfway ok, they would rather just reduce the amount produced and keep the price up.
Tim Cook is a supply chain expert, he surely knows perfectly well at which point it would be wiser to drop the price some than to just cut down the amount sold.
Since of course the whole idea behind the 5C is selling the old thing at even further reduced production costs at maximised profit range, so yeah, why change that if there's not absolutely a need for it.
I wishedhad broken their 's' Model design tradition this year and would have rather released a 4.3" and a 5.3" phone model. Obviously with a redesign of the outer shell with smaller bezels to keep the smaller model as the same size as the current 4" iPhone. And those of, us, who are lusting for a bigger screen iPhone, would have been happy, too.
Add some clever software tweaks to iOS to enable single hand input for the bigger model and, of course, market them both as meticulously crafted high end models. Sales Figures: *Booooooooom* - Through the roof.
Man, I would've finally had a solid reason to go back to the iPhone . . . although, there's still my totally personal problem of iOS7.
Maybe someone's grandmother just buys whatever phone is pushed on them, but most consumers actually go into a retail store already knowing what they want, and just need the salesman to further convince them.
I pray that that notion isn't some lame excuse as to why Android handsets are becoming more popular?
iPhone 5 Production
is it still going on, all the iPhone 5 production ended?
we can still see stock on att and verizon and so on.
is it still going on, all the iPhone 5 production ended?
we can still see stock on att and verizon and so on.
Knowing Apple wants to make robust margins on its phones, I still don't know what a "cheap" iphone would look like, especially if it has to run on the most recent chips.
That's an interesting take on the situation. However Apple has sold its older iPhones at a 100.00 discount (for 1 yr old model) and at a 200.00 discount (for 2 yr old model) since the original iPhone. And they've done this with great success so far. That evidence pretty much invalidates your argument completely.
It's not running on the most recent chips now. Isn't the 5C using the same chip from last years 5?
True, Apple will never decrease the price of the unlocked phone but they will decrease the volume price they offer to 3rd party retailers and telcos. This is how phones always get cheaper on contract as the year wares on but the off contract price from Apple always remains the same. Apple just pass on any cost of production savings to the bulk buyers.
Yes, but even then the cost BoM isn't that less than the 5S. In order to make a "cheap" iPhone, Apple would have to use a 4S chip, restrict memory to 16G or 8G, use a worse camera or battery, or make other concessions. The point is that a cheaper iPhone than the 5c would be a nonstarter because the internals would be worse.
You sound angry. $200 or $300 with contract does not make much of a difference with me. I chose a 32GB 5C over the 5S. I like the plastic phone over the metal alternative. Additionally they both have the same equipment that I care about; radios, DAC, audio amp and screen.
If Apple had offered advanced model with wireless AC, a decent DAC, a quality audio amp, advanced LTE and FM/HD radio I would have been willing to spend $500 with contract.
Nope. Those who want a 5s are going to buy a 5s. It's a generation ahead.
A cheaper 5c would cannibalise Android sales much more than 5s sales.
This is potentially true. The question is how Apple could have made it cheaper without sacrificing margins or quality. They may not have had the answer this time around.
One important piece of data that is missing from this narrative is what Apple planned to produce initially. Yes, they told Pegatron and Foxconn to cut production levels of the 5c relative to the launch level, but that could have been the plan all along. After all, production schedules at electronics manufacturers are rarely flat throughout the life-span of the product. Typically production is high at launch time to address pent-up demand from people waiting for the next generation and to go with the initial burst of media hype. Then over time you normalize to some level which lasts for the remainder of the product cycle.
So an alternative interpretation of this story could be that the 5c is selling exactly as planned, but the 5s is still selling more than anticipated. This version is backed up by the fact that first weekend sales of those two phones exceeded launch weekends for every prior iPhone.
So an alternative interpretation of this story could be that the 5c is selling exactly as planned, but the 5s is still selling more than anticipated. This version is backed up by the fact that first weekend sales of those two phones exceeded launch weekends for every prior iPhone.
Anyone who is following this AND ALL OTHER iPhone launch news, and posts any negative conclusions, are trolls. Plain and simple. Because if you're not a troll, you're too stupid and irresponsible to be allowed near a computer.
Apple must be thrilled, as this iPhone launch completely blew their expectations out of the water:
Apple was geared up to sell more iPhone 5C and fewer iPhone 5S (although they would have wished for the opposite). Knowing the market as they do, they knew there was a chance that their flagship product would so impress as to be the best seller, BUT they had a huge caveat with the 5C....first time ever releasing a "new" model alongside the flagship model..Less expensive, And, with attractive design/colors that many smartphone buyers are looking for.
So Apple was fully prepared to sell more 5C than 5S and eat some early margin loss for the sake of overall sales.
But, the market for a flagship $200+ phone proved to be bigger than anticipated, and to Apple's sheer delight, the 5C sold better than the 4S YOY, and the 5S sold the best of the two new phones.
Apple couldn't have wished for a better outcome, and that was probably a delightful phone call for them to make: Ramp up 5S, slow down 5C.
= More Money.
Apple must be thrilled, as this iPhone launch completely blew their expectations out of the water:
Apple was geared up to sell more iPhone 5C and fewer iPhone 5S (although they would have wished for the opposite). Knowing the market as they do, they knew there was a chance that their flagship product would so impress as to be the best seller, BUT they had a huge caveat with the 5C....first time ever releasing a "new" model alongside the flagship model..Less expensive, And, with attractive design/colors that many smartphone buyers are looking for.
So Apple was fully prepared to sell more 5C than 5S and eat some early margin loss for the sake of overall sales.
But, the market for a flagship $200+ phone proved to be bigger than anticipated, and to Apple's sheer delight, the 5C sold better than the 4S YOY, and the 5S sold the best of the two new phones.
Apple couldn't have wished for a better outcome, and that was probably a delightful phone call for them to make: Ramp up 5S, slow down 5C.
= More Money.
many purchase "last year's" phone when the new one comes out because it is cheaper...the 5C is an attempt to capture that market with a fresh look...I see parents buying these for their kids, and expect that the sales of them will increase as we approach the holiday season...
They actual made a number of hardware changes that improved the 5c over the 5: 1) Larger battery 2) Superior front-facing camera + rear light sensor 3) Support for additional LTE/cellular bands. http://www.pcadvisor.co.uk/reviews/apple/3468120/iphone-5c-vs-iphone-5-comparison-review/
Also, the 5c costs essentially the same to produce as the 5s. Its a 26.00 difference:
http://www.tuaw.com/2013/09/24/ihs-iphone-5s-component-tally-reaches-199-iphone-5c-costs-17/
To be fair most Samsung phones or indeed of pretty much any other manufacturer have price drops almost immediately after launch from at least some outlets. I don't think the 5S is selling better than expected, I think it is simply that production problems have reduced supply as evidenced by the long wait times for delivery. The 5C may or may not be selling as well as expected, we just don't know for sure. High availability of the 5C is probably a better indicator than supply chain rumours. But whatever we read from this the fact is that the 5C is selling better than the 4S did when the 5 came out so it seems to be a win.
That's silly. Why advertise the iPhone (5S) that's selling immensely and in high demand and put the low-selling one on the back burner? You're suppose to highly advertise the one that isn't selling as well. Business 101.