Apple Cutting iPhone 5c Production at Two Major Suppliers

[Shearwater]

iJunk not selling!... Surprise?...nope..

 

[ccuilla]

The majority of them do. Name someone you know that has a $30 flip phone instead of a smart phone?

I know several people. Mostly people (myself included) who are kinda like "eh...okay...not that big a deal in my life right now." Granted it is a diminishing crowd. But even in the smart phone market not everyone buys the most expensive, top of the line model. If that were true, no one would be offering an other models.

Fact is, the smart phone market is maturing and probably saturating to the point where there will be further price discrimination. The phone has arrived at the point where it's pretty much good enough for what most people need. Apple probably got there with the 5/5C...and the 5S is starting to look like a small reach in terms of new bells and whistles.

 

[Rogifan]

Interesting however this further confirms that the 5c's current color scheme is geared towards the female audience and that's a missed opportunity for Apple cutting out the male audience.

Yes. I think Apple should add some additional colors to the line up. Black for sure. But it shows that the colors Apple chose weren't just someone throwing a dart at the wall blindfolded and then seeing what color it landed on.

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Exactly. Buying a colorful iPhone immediately tells everyone that you did not buy the flagship. They know you have an iPhone still but they also know you spent far less on that iPhone than the guy/gal walking around with the metal/adult colored iPhone. Yes its superficial as all hell but consumers are superficial as hell.

Except most people put their iPhone 4/4S/5/5S in a case. Everyone I know has their iPhone in a case, most of them in a colored case. If people are so superficial why are they shoving their iPhone in a big, bulky otterbox case?

 

[AppleScruff1]

Wow, just 5 minutes ago those were my thoughts too. A black 5c and a Product Red would really be a great addition and would attract a much larger male audience of many ages. I'm not crazy about the current colors either. Much of that might be the reason for softer sales.

I'm really surprised that there wasn't one in black. That would probably be a lot more appealing to male users.

 

[Big Dave]

I'm still using my iPhone 4. I debate upgrading every iPhone release but then I think that I wouldn't be getting much by doing so. This is not because the newest iPhones aren't awesome, but in my home area, I still have ATT 3g and so I don't need LTE yet. My thinking is why lock into a contract with ATT to get a phone that doesn't work as it should because of the network. I wonder how many people are like me in that they don't want to give up their ATT unlimited data plan and don't upgrade to an LTE iPhone because they don't have LTE.

 

[jmerchlinsky]

Yes. I think Apple should add some additional colors to the line up. Black for sure. But it shows that the colors Apple chose weren't just someone throwing a dart at the wall blindfolded and then seeing what color it landed on.

I wouldn't expect a black 5C. Why would they risk having an austere professional looking 5C canabalize sales of the 5S? They are trying to not give existing fans of their asthetic an option that takes away $80 of profit on each sale.

They've redefined the $100 price point to be ONLY for those customers who don't like the esthetic of the flagship device (or absolutely won't spring for the extra $100). Smart and impressively ruthless profit maximization.

 

[ColdShadow]

Great decision by Apple..I was looking forward to hear this..now just focus on the superior 5S...they should also cut the price of 5c..5C should really be marketed toward younger teens and kids only in my opinion..it not on par with other Apple products in terms of design.

 

[heimo]

I'm really surprised that there wasn't one in black. That would probably be a lot more appealing to male users.

Perhaps Apple should've gone crazy with color options. Something with a classic Apple rainbow logo would be very retro.

 

[Twimfy]

People wanted gold, not an iphone 5 wrapped in plastic for $100 less.

I'd feel embarrassed carrying around a gold iPhone. I'm not gangsta or a single teenage mum who says brapp all the time while wearing hoop earrings.

Champagne gold just reminds me of fake Rolex watches from the 80's.

 

[Dextor143]

I have moved forward to android.....Dont really care!

 

[8-Bits]

The Magic of Plastic?

So much for the "magic of plastic" and the "smooth round corners" from Jony Jive.

 

[BC2009]

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 think the iPhone 5c is selling as well as I expected (i.e.: better than the iPhone 4S at $99 last year). I can't remember anybody excitedly telling me that they bought or were going to buy an iPhone 4S last year. I have heard many people excitedly tell me about plans to buy the iPhone 5c or come by and show it off to me. So I think the iPhone 5c is doing what it needs to do: improve Apple's bottom line by drawing in more budget-minded buyers.

It is possible that Apple thought it would be doing better than it is and hence the scaling back of production. I'm sure the actual demand for each model will help shape the fiscal Q1 guidance we will get on the 28th.

I have said this several times before: demand for the iPhone 5c will peak at Christmas time in the USA as parents trade in older iPhones to upgrade their teens and tweens. Right now, it does not make sense for the iPhone 5c to be selling that well since its target market is not early adopters with pent-up demand. Its target market is the casual upgrader and the parents buying for their kids. The iPhone 5c will also do better than the 4S did last year over the long haul because it is a more interesting device than "last year's iPhone".

So I'm not quite sure why anybody is trying so hard to say the iPhone 5c is a failure when reports indicate that it is outselling every Android model in the USA at the major carriers combined. That seems pretty good to me even if Apple had initially ramped up supply thinking it would do even better.

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I have moved forward to android.....Dont really care!

You've moved backwards.

 

[pmz]

I cut out a couple bits, to address the key ones. The little children jab is you not understanding the myriad of arguments people are presenting. You are in "apple think", and can not break out of it. Your #4 and #5 points are EXACTLY what people are saying is the wrong approach.

Apple's approach, with your 10000% obvious approval, is to sell 5% more phones, year after year - period, end of story. Again, look to #4 and #5. But that isn't good enough anymore. That was a fine approach in 2007-2011, but the environment is not the same anymore. You actually have COMPETITION. And right now, Apple is losing market share to the competition. Apple is following the same gameplan that took them to the bring in the 90s - High margins, incremental sales, bury it's head in the sand concerning competition.

From all accounts, the 5 was difficult to manufacture, that was the driving force behind the 5c. IF your goal is to sell 5% more YOY, you go about what Apple did and scoop out the innards of the 5 and slap them in a cheaper to produce plastic shell, and ship 'em. Much like Apple, you end the story here, and berate anyone who questions Apple's approach. But what people are pushing is the battle apple is winning here, is causing Apple to lose the war.

Staying the upper, upper, tier is causing apple to lose market share. At some point in time, following this approach, you will have developers starting to jump ship because its doesn't pay to program to the 5%. You laugh at the notion, but so did Apple at one point in time.

People wanted and still want an upper-mid price point Phone to compete with Android, one they can more easily afford, and secures iOS's position in the environment. Apple path, with you cheering all along the way, eventually leads to high priced dust collectors, when competitors eventually gain a stranglehold of the marketplace.

Who is it NOT "good enough" for? You? Investors? Then take your money elsewhere. Apple's approach is to make more money selling fewer devices. As opposed to less money selling more devices (that is of course assuming that which is NOT a given at all...that such a move actually sells significantly more devices).

This is where you people embarrass yourselves. Your completely uneducated analysis of Less Dollaz = More Unitz.


And, I can't even believe I'm addressing this absurdity....but you MADE UP some garbage about the 5 being difficult to manufacture and therefor here comes the 5C? That is the most amateur, uninformed trash I've ever seen. Best to keep your fantasy arguments to yourself.

 

[BC2009]

iJunk not selling!... Surprise?...nope..

iPhone 5c is only selling better than every Android phone out there, what does that say about those phones?

 

[WestonHarvey1]

What people didn't want a phone that had last year's technology in it? Shocking.

If by "people didn't want" you mean millions sold, then, ok.

 

[pmz]

Exactly, that is the metric. How do we know that the 5c is exceeding it though? Just curious. I didn't think Apple would release a 5s/5c sales breakdown.

I've been following the reports and accurate estimations so far. The most conclusive shows the 5C selling 4% better than the 4S did a year ago.

It is not uncommon for a thread like this to grow on the comments of people that do not have any idea what is going on, at all.

 

[ccuilla]

Why else would Apple reduce iPhone 5c production at two major suppliers?

I think possible explanations for these changes have been explained multiple time already. You are resting on one possible explanation.

 

[WilliamLondon]

Exactly, that is the metric. How do we know that the 5c is exceeding it though? Just curious. I didn't think Apple would release a 5s/5c sales breakdown.

allthingsd reports a survey showing the 5c is selling 27% of the total iPhone sales, whereas last year the 4s sold 23%, while the total number of iPhones sold increased, one can conclude the 5c is both higher in % and higher in actual units sold than it's predecessor, the 4s.

 

[phoenixsan]

If demand of the 5C......

remained strong, there is no logic in downsizing production. If demand equals projections, then no need to adjust.....

Sounds like the 5C is just in the mark to make even..........

 

[pmz]

What people didn't want a phone that had last year's technology in it? Shocking.

No.

If that were true, it would be incredibly shocking. Flooring, even.

You know...considering the fact that the last several years have shown the complete opposite ....that people absolutely do want last year's technology. Droves of them. Insanely profitable numbers of them.

This year is no different. In fact it shows that by making a slight improvement to last year's, you can also do slightly better.

 

[Ryth]

The majority of them do. Name someone you know that has a $30 flip phone instead of a smart phone?

I just got my first smartphone a week ago when I bought the 5s.

Why did I have a flip phone till now? Because T-Mobile didn't offer the iPhone till now and I wasnt going to pay $80 a month (and wasnt going to buy the 5 three months before the 5s came out)

 

[NMSUballa]

I know several people. Mostly people (myself included) who are kinda like "eh...okay...not that big a deal in my life right now." Granted it is a diminishing crowd. But even in the smart phone market not everyone buys the most expensive, top of the line model. If that were true, no one would be offering an other models.

Fact is, the smart phone market is maturing and probably saturating to the point where there will be further price discrimination. The phone has arrived at the point where it's pretty much good enough for what most people need. Apple probably got there with the 5/5C...and the 5S is starting to look like a small reach in terms of new bells and whistles.

I think a lot of people think if they are going to go the cheaper route then they will just keep the smartphone they have now rather than locking up their 2 year plan by buying the 5c. I stayed up and watched the 5s go on sale for a few hours and the first memory option to be sold out was always the 64 rather than the 16. I doubt it is from Apple making less of that option. The two top selling smartphones are the iPhone and the Galaxy which are also the two most expensive.

I remember back in the day of flip phones that everyone kept them in their pocket and pulled them out when they got a call. Now people leave their phones on the corner of the table while in public so everyone can see what they have.

 

[ValSalva]

allthingsd reports a survey showing the 5c is selling 27% of the total iPhone sales, whereas last year the 4s sold 23%, while the total number of iPhones sold increased, one can conclude the 5c is both higher in % and higher in actual units sold than it's predecessor, the 4s.

Thanks. This is what they said:

Despite the 5c’s newness and its colorful design, it’s not selling that much better than the 4S did when it was demoted to legacy iPhone by the flagship iPhone 5.

But...

Over time, the lower-priced phones have tended to gain share versus the flagship phone, after the initial rush of dedicated upgraders to the newest device.

As long as overall iPhone sales continue to be increased, be they 5s or 5c, Apple is happy.

 

[ccuilla]

I remember back in the day of flip phones that everyone kept them in their pocket and pulled them out when they got a call. Now people leave their phones on the corner of the table while in public so everyone can see what they have.

Hmmm. Maybe. Seems like a bit of a broad generalization from my own observations. I don't see this behavior.

 

[eltaurus]

Apple Just price it properly 300$-380$ unlocked

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iPhone 5c is only selling better than every Android phone out there, what does that say about those phones?

that people are brain washed (fanboy / its iDevice ) ..