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Apple Increasing iPhone 5s Production by 75%, Cutting iPhone 5c Orders by 35%

xofruitcake said:
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...
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You do know there is a big gap between free and $549, right? Heck, keeping in the $399-$549 would be more in line with expectations, and would be received worlds better in the non-subsidized regions, as opposed to the super high 5s:5c ratios outside the US.
 
Piece of junk

The 5c is an overpriced piece of junk.
I really expected a much much cheaper phone with apples latest release, guess who IS listening GOOGLE, and guess what I'm switching. I've had enough of buying 900 dollar phones.
 
Count Blah said:
You do know there is a big gap between free and $549, right? Heck, keeping in the $399-$549 would be more in line with expectations, and would be received worlds better in the non-subsidized regions, as opposed to the super high 5s:5c ratios outside the US.
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Have you work out the effect of increase unit but less profit per unit on earning? I did. And the picture is not pretty. Selling more unit does not means making more money. 5c looks to be making about 250-300 a unit of gross margin (I.e before overhead like marketing, R&d, SG&A, depreciation, tax etc). Cutting the price from 550 to 400 means than gross margin go from 250 - 300 down to 100 to 150 a unit. And Apple need to sell 2x to 2.5 x more 5c to just stay earning neutral.. And that is not counting on canniblization of 5s unit (you know if 5c is so cheap, may be I can buy a 5c now instead of 5s). So do you think Apple can sell 2x to 2.5x of 5c if the cut the price down to 400? And better yet, let's run the number for $329 for each 5c instead and see for yourselves how many 5c they have to sell to be earning neutral. You can see first hand on what Ipad mini do to Apple earning from the last 3 quarter Ipad asp and Samsung Lawsuit transcript last year.

And guess who else will say thank you to Apple? ATT & Verizon of the world will be very happy. Today the subsidize $450 a phone for both 5c and 5s by charging $99 and $199 upfront with the $549 and $649 unlock price. Tomorrow, they would offer $0 upfront and only have to pay Apple 400 for the 5c. They just save $50 a phone. And is there a reason that Apple should stuff money in Telecom's pocket?

If you think you know better than the people in Apple, write Apple a proposal and explain to them why they are so stupid. And may be you can be their next CFO and make tens of million a year. :cool: But my guess is that you have never even open up a quarterly earning report from Apple and have absolutely no ideal the dynamic between how the price and demand curves affect the overall earning :cool:
 
xofruitcake said:
If you think you know better than the people in Apple, write Apple a proposal and explain to them why they are so stupid. And may be you can be their next CFO and make tens of million a year. :cool: But my guess is that you have never even open up a quarterly earning report from Apple and have absolutely no ideal the dynamic between how the price and demand curves affect the overall earning :cool:
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I'll leave the conversation now. Can't debate against the "well then, start your own phone/computer company" defense.
 
However, the "flop" iPhone 5c sold well enough to bump all of the Google/Motorola, Nokia, HTC and Sony competitors out of the top three. It also outsold the Galaxy S4 on AT&T and Sprint, where it performed better than than last month's iPhone 5 had, despite being only marginally different.
 
FrizzleFryBen said:
I didn't know colors were gender specific. Although, I prefer not to adhere gender stereotypes; so maybe it's just me. BTW, my nephew likes pink Hello Kitty stuff and I just bought him a pink Hello Kitty tent.

I'm can't wait for the tech community to get over it's sexist and homophobic ways
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I see you're supporting the bully community! Indeed, in some parts they are running low on kids to pick on. We all have to do our part. :)
 
dazed said:
Ugly colors and too expensive. I'm surprised they sold as well as they did.
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How about this alternative?
boldColorsNotPalePastels2-small.jpg
 
nick42983 said:
The 5C would look great if it were black or white, but these look like iPod touches for kids. I'm holding off to upgrade my 4S next year, but if I had a 5C I'd want to get a case to cover up the loud colors, and definitely not Apple's goofy, swiss-cheese case.
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You can blame the marketing pukes that never wrote a line of code in their life for this one. Was told the original plan was to follow the rainbow of the iPod Nano's with "bookends" of a black and a white case. The idea of managing seven colors of 5C's didn't fly well with the operations types.

The lore further says it was a tug for war between what colors should go. One thing that influenced this was a lot of attention on the Asian market where black and white colored products sell less then colored products. Same goes with the case and its neo-60's style case.

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vortextheory said:
The 5c is an overpriced piece of junk.
I really expected a much much cheaper phone with apples latest release, guess who IS listening GOOGLE, and guess what I'm switching. I've had enough of buying 900 dollar phones.
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My take is your will see a significant price drop on the 5C right on Black Friday making another overnight line wait on Thanksgiving evening.
 
xofruitcake said:
If you think you know better than the people in Apple, write Apple a proposal and explain to them why they are so stupid. And may be you can be their next CFO and make tens of million a year. :cool: But my guess is that you have never even open up a quarterly earning report from Apple and have absolutely no ideal the dynamic between how the price and demand curves affect the overall earning :cool:
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Glad some has the same mindset. There are a lot of "armchair executives" here that never handled a budget larger than their personal expenses. Worst, they project their own personal preferences into the market with poor social skills to boot.

And yes, I have researched, developed, launched and spent my share of trade show booth time. I smiled and nodded during product demos as a know-it-all barks at me about their product needs but only wants to purchase one unit.
 
Badandy said:
It's not hard:

Simply changing the production mix doesn't increase average revenue per iPhone sold. It would only satisfy the current demand a bit sooner unless you are suggesting that the supply is driving the demand.
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Ofcourse, but the product mix changes due to changed estimates for the demand.
 
If you're gonna make a phone for kids you need to price it so kids can afford it. I feel the same way about the latest iPod touch. They made it really nice w/ the new design but the $299 entry point is too expensive for what would be a great device for kids.
 
zin said:
A wild suggestion to Apple is to make the iPhone 5c what it was rumoured to be: a low-priced iPhone.
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How about stop relying on rumors?

The iPhone 5s has been in somewhat short supply
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Somewhat? I've been waiting since Sept. 23 for my gold 64 :mad:

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vortextheory said:
The 5c is an overpriced piece of junk.
I really expected a much much cheaper phone with apples latest release, guess who IS listening GOOGLE, and guess what I'm switching. I've had enough of buying 900 dollar phones.
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Bye Bye!
 
johnnnw said:
5C sounded like a weird idea to me before it was even announced.

Not cheap enough to be the phone they want it to be.

Most people would rather just pay the extra $100 and get all the cool new features, when you think about it $100 over 2 or 3 years isn't much.
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that's the point. the 5c exists to push people to buy even more 5s. makes perfect business sense.
 
u can all hate what u want but Tim Cruz is still making good phones and everybody gives good ratings. u can see consumer reports here on macrumor and u will see that iphone 5's and iphone 5'c is good phone.

no need to talk waste about the phone, ok.
 
Lickinstick said:
u can all hate what u want but Tim Cruz is still making good phones and everybody gives good ratings. u can see consumer reports here on macrumor and u will see that iphone 5's and iphone 5'c is good phone.

no need to talk waste about the phone, ok.
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Who? :confused:
 
Our company has decided to give iphone 32GB 5c only. Many wanted the 5s and were even open to pay for the phone cost (or the 16GB 5s). But management decided that having 32GB was important and the justification was "you can choose colors"
 
Tysknaden said:
The C was meant as a replacement for the 4 S - which was selling in high numbers.
The gold is now the symbol for having a new top Apple iPhone. Don't tell me, this wasn't to expect.
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Oh I never said that Apple doesn't know what they're doing. The opposite actually.

On a side note - I wasn't planning on this upgrade but happened to drop and crack the screen of my iPhone 5 so decided to do it. Sold it cracked for the price of my upgrade and walked into my local apple store to see what they had. This was in the morning when they first opened and they had just received 3 gold 32GB 5s's so I got one. Probably very lucky but worth a try if people really want the gold phone (or whichever they want).

Great phone! Got the brown BOOKBOOK case and they match up very well IMO.
 
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