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I think gross margins for the 5s is higher than the 5C, so any shift towards more 5s sales will improve margins for apple due to a better mix.

The stock market is fixated on gross profit.

I'd rather make for example 39% gross margin on a $650 phone than 40% gross margin on a $550 phone. (The numbers are pure guess), but the stock market would prefer the 40%.
 
The profit from Android is not necessarily from the OS (and the hardware sales goes to the 3rd parties)...it's with the AD sales...and with that, Google is making tons of profit. Just ask their $1,000 stock price.

Apple is playing a different strategy in the same ball game.

Stock price isn't the same as market cap. You can have $15,000 stock prices and be less valuable than Apple's market cap.

Funny how Google actually makes money off iOS, which is the smaller market share like you said.
 
Apple increases iPhone 5S production, decreases iPhone 5C production.

Gosh, this has been like the exact same article/headline for the past 3 weeks...

When is it no longer news worthy?
 
Because apple thought people would be stupid enough to go for the 5c


That may be true for switching Android users, but it's far more likely that Apple thought people would be smart enough to realize the 5s was a good deal for only $100 more.
 
What MAN would walk around with a 5c with its girly colours :eek:
When was anything a boy or girl colour? :rolleyes: Only by your stereotype. I have the Yellow 5C because the 5Ss are ugly phones IMHO with the cheap looking edging. Waiting for the iPhone 6 here. :D

Could Apple have afforded to sell the 5C on a equal or loss basis? Maybe, but they wouldn't budge from being a luxury brand. Luxury brands rarely sell below their mark and we shouldn't expect Apple to do so for a long while unless they get into big trouble.
 
.... so does anyone go back and find all of the completely INCORRECT comments from users .... and rub their noses in it?
 
iPhones

The iPhone 5c is really quite amazing in person. If it would have at least gotten the 5s camera, it might sell better.

I will purchase the 5s, but honestly wish I could have some of the fun with colors that the 5c and the case have.
 
Perhaps shortages of 5s was the sway people into getting the 5c. Now that C has settled they are now moving to the 5s which is still a rare gem.
 
Don't think the US needed a cheap unsubsidized phone unless it were to be $300 or less to really catch on. Most people will just subsidize a get the latest and greatest 5s for $199.

The 5c really only makes sense in other countries where there are no phone subsidies.
 
5c would sell well if it was unlocked and without a contract at $300-400. Apple needs to stop being so greedy.

They are a for-profit business. The only phone sold in that price range off contract is the Nexus 4 and maybe the upcoming Nexus 5, but that's because the company selling them (Google) makes money through selling ad revenue, and positions the Nexus line as more of a "loss leader" and reference design for Android rather than a serious revenue source.

Samsung does not sell the S3 for $300-400 off contract. Neither does Google/Motorola with the Moto X (as it sells through the more traditional carrier subsidy model).
 
I quite like the 5c. It's feels well made and comfortable to hold. The problem is that it's not that much cheaper than the 5s so you may as well pay a bit extra and get the better 5s. You can always put a colourful case if you want some colour.

However I do think the 5c is a work in progress. Presumably when the iPhone 6 comes out next year they will drop the 4s and lower the price of the 5c to replace it as their entry level phone. Then it will start to sell a lot more.
 
The 5c really only makes sense in other countries where there are no phone subsidies.

I would agree apart from the fact that it's way too expensive without contract in those countries, including the UK. I can't see many people buying a 5c off contract when you can get decent non-contract phones for half the price.
 
Don't think the US needed a cheap unsubsidized phone unless it were to be $300 or less to really catch on. Most people will just subsidize a get the latest and greatest 5s for $199.

The 5c really only makes sense in other countries where there are no phone subsidies.

I have quite a different view. Apple has been selling last year phone at 549 unlock or 100 + contract since the beginning and they have been doing well. The 2nd year phone account for anywhere between 25-33% of IPhone sales every year. There is a market for Apple 2nd year phone is because of subsidy. If your 4s or S2 contract is up this year, you look around and see what is a good phone to have. And here come the 5c. You can trade in your 4s or s2 (or any high) and get $120-150 for their older device and they can pay the initial fee, keep the same contract and still have some money left to buy a new case. 5c is definitely better than 4s and s2. If any one care to see, 5c is marketed to the teen, younger crowd and woman. Those group of users do not need latest technology. Brand, design, and packaging mean a lot to them. The fact that 5c is a new design is probably more important to them than all the technology that they miss. And Apple launch the trade in program ay the same time that they launch 5c and 5s. And I wonder why? You can make the same argument last year that no one should have bought 4s, they could have paid 100 more an get a 4 inches screen rather than getting a 3.5 inches screen.. But you would have been wrong because 4s had sold well last year.
 
AppleInsider has a pretty cogent article on this: http://appleinsider.com/articles/13/10/19/the-mysterious-failure-of-apples-iphone-5c

It is strange how quickly the media has turned on Apple. I guess it's true what they say: success breeds envy and envy leads to hate.

Or perhaps willingly ceding marketshare to android is causing people to take notice.

Apple created the Mac Mini for a reason. Same for the iPod Nano/Mini. The rest of the marketplace basically gave up. But when it comes to the iPhone, Apple is falling into the 90s PC pattern. Ceding marketshare, and just going for the +5% YOY increase in sales.
 
5c would sell well if it was unlocked and without a contract at $300-400. Apple needs to stop being so greedy.

I would agree but right now they can afford to be so greedy with each new iPhone selling like hot cakes. Why lower the price when you don't have to. However I do think that they can't get away with this forever and they will have to introduce a cheaper mid-range phone if only to keep up their market share and keep the cash rolling in for their developers.

Apple could probably make a nice healthy profit with just 10% market share but if the other 90% is mostly Android eventually developers will start to prioritise Android development over iOS which as we've seen with Blackberry is when it all starts to go pear shaped.
 
4S was bought because of older connector. If you have a lot of peripherals with old connector, may make sense to use them (though there is an adapter, don't know how it works).

Incorrect.

----------

As you said previously, last year lots of people were still buying the 4S even though the 5 had LTE and a bigger screen. I see the 5C as product differentiation and a way to make the mid tier phone less complicated to produce. This is a long tail play. Tim Cook has said many times over that Apple is all about the long term. I see this as part of that vision.

The other thing is no one at Apple ever said the 5C was intended to be a cheap phone for China. It was the media, bloggers and Wall Street analysts that predicted it. Dinging Apple for not doing something it never said it was going to do seems a bit odd.

Yes, exactly.
 
Or perhaps willingly ceding marketshare to android is causing people to take notice.

Apple created the Mac Mini for a reason. Same for the iPod Nano/Mini. The rest of the marketplace basically gave up. But when it comes to the iPhone, Apple is falling into the 90s PC pattern. Ceding marketshare, and just going for the +5% YOY increase in sales.

More like 25% yoy sales. Apple looks to sell about 160-170m IPhone in fiscal 2013.. and it is about 25% or so increase from fiscal 2012. The base market grow at about 40% YOY.. So Apple is not growing as fast as the market but they certainly take majority of the profit from the industry. growing market share is easy. Just hand out your device for free. If it is anywhere decent, users will take it. But making money is hard...
 
I quite like the 5c. It's feels well made and comfortable to hold. The problem is that it's not that much cheaper than the 5s so you may as well pay a bit extra and get the better 5s. You can always put a colourful case if you want some colour.

However I do think the 5c is a work in progress. Presumably when the iPhone 6 comes out next year they will drop the 4s and lower the price of the 5c to replace it as their entry level phone. Then it will start to sell a lot more.

I think that is a reasonable theory, that basically what seems like a strange strategy this year, may actually make a lot of sense next year. Although I'm not sure whether you would be going for [ip6, ip5s, and ip5c], or [ip6, ip6c and ip5c] (the 6c being a plastic version of the 5s). On second thought, maybe it will continue to be confusing... The 5c will make and excellent entry phone next year though, and all 3 will have lightning connectors, LTE, and run ios7/8 flawlessly...good times. Prices will stay the same, and iphone will remain a premium brand.
 
Same goes for Northern Europe and Scandinavia.

Don't think the US needed a cheap unsubsidized phone unless it were to be $300 or less to really catch on. Most people will just subsidize a get the latest and greatest 5s for $199.

The 5c really only makes sense in other countries where there are no phone subsidies.
 
Don't think the US needed a cheap unsubsidized phone unless it were to be $300 or less to really catch on. Most people will just subsidize a get the latest and greatest 5s for $199.

The 5c really only makes sense in other countries where there are no phone subsidies.

It makes even less sense there.
 
KiwiAdventure said:
What MAN would walk around with a 5c with its girly colours :eek:

A man who is not a total jerk who thinks that they are "important" by the color or type of phone they carry.... This type of man is unconcerned what others think.

Then there's the other type - YOUR Type. "I 30 years old and have an iPhone 5S, I'm finally somebody"!!!!!

You sound like a great example of the "that other type" KiwiAdventure!!! Congratulations on your iPhone. I'm sure it makes you feel special!!!!!!
 
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