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Apple Increasing iPhone 5s Production by 75%, Cutting iPhone 5c Orders by 35%
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There prices would have been justified with the same hardware in the 5s and let folks choose a color. Maybe not the fingerprint scanner but the internals should be the same.
Then maybe the price is justified.
To have them be basically a iPhone 5 with a better camera and in "World Changing" Color plastic. They need to be down in the 59 - 149 party.
$100 more gets you too much of an upgrade.
Then maybe the price is justified.
To have them be basically a iPhone 5 with a better camera and in "World Changing" Color plastic. They need to be down in the 59 - 149 party.
$100 more gets you too much of an upgrade.
One Vote for the 5C
Bought one for my wife today.
She loves the blue.
Both of us think it feels better in the hand than the square models.
It's plenty fast.
iOS7 looks different but it took about 5 minutes to get used to it.
Sure there's only a $100 price difference between this and the 5S but Koodo subsidized the cost so our net price was about $300. For roughly 2/3 the price of a 5S we got a phone that does everything we need and will last a long time.
That's a deal in my book.
Bought one for my wife today.
She loves the blue.
Both of us think it feels better in the hand than the square models.
It's plenty fast.
iOS7 looks different but it took about 5 minutes to get used to it.
Sure there's only a $100 price difference between this and the 5S but Koodo subsidized the cost so our net price was about $300. For roughly 2/3 the price of a 5S we got a phone that does everything we need and will last a long time.
That's a deal in my book.
What lesson is that?????hear is the brutal truth
Apple is a high end product!Brutally, if you cant afford it, move on. The 5C debacle is a lesson for, Cheaper isn't better, stay first Class Apple, Its where the future AND THE $$$ is
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59-149?? The C is already 0 Down and it costs $173 to manufacture
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Horrible colors of Iphone 5c. It started last year with IPOD Nano and IPOD touches colors.
Wish they had chosen those colors which were approved by Steve jobs with iPod nano 3rd to 6th generation. Those generations Blue, green, pink, yellow was superb. Now I know it was Steve who used to cut off the bozo ideas of the apple teams. iOS7, iPod Nano, IPod touch colors, iphone 5c colors are examples of apple teams without jobs inputs.
Wish they had chosen those colors which were approved by Steve jobs with iPod nano 3rd to 6th generation. Those generations Blue, green, pink, yellow was superb. Now I know it was Steve who used to cut off the bozo ideas of the apple teams. iOS7, iPod Nano, IPod touch colors, iphone 5c colors are examples of apple teams without jobs inputs.
5c is no failure, it totally brilliant.
When Apple releases a new model phone, sales of the old model go down. This is typical with all new devices, to the point when most manufactures actually stop or severely decrease production of old models with new releases. Had Apple only released one new model this cycle like usual, no one would be freaking out that sales of the original iPhone 5 went down, due to sales of the 5s.
So what does Apple do brilliantly with their latest release? They re-skin skin the old model. They have a wildly successful launch of their new model, and contrary to usual sales trends, simultaneously increase sales of the old model with a simple cosmetic change. I think is quite safe to say that sales of the 5c have and will continue to dramatically out perform with certainly more profits, what the old model iPhone 5 would have done, had the 5c not been released.
When Apple releases a new model phone, sales of the old model go down. This is typical with all new devices, to the point when most manufactures actually stop or severely decrease production of old models with new releases. Had Apple only released one new model this cycle like usual, no one would be freaking out that sales of the original iPhone 5 went down, due to sales of the 5s.
So what does Apple do brilliantly with their latest release? They re-skin skin the old model. They have a wildly successful launch of their new model, and contrary to usual sales trends, simultaneously increase sales of the old model with a simple cosmetic change. I think is quite safe to say that sales of the 5c have and will continue to dramatically out perform with certainly more profits, what the old model iPhone 5 would have done, had the 5c not been released.
Who?
I think he means a combination of Tim Cook and Sen. Ted Cruz -- a tough-minded Texas CEO of Apple who wants to shut down Google.
Honestly, why is everyone surprised ?? Since when did the older model compete with the new one? They just made what is an excellent phone, and one that I am currently using in the iPhone 5, more fun and a bit cheaper.
I don't want it too cheap, cause it will kill resale on premium iPhone 5's.
Apple actually thinks of these things.
Unlike Samsung, who release a phone in May or whatever and they are already spreading release dates about their SGS5 - because it was a flop in comparison to the one it always tries to catch- the iP5.
Don't kid yourself- the iPhone 5C is being all it needs to be. An older very capable phone that is now a bit cheaper and more fun.
You want the latest? Get the 5S.
Tell me, how many old sgs3 etc still hold their own now against iPhone 5??
Sgs 3 is Discounted rubbish plastic- and the anti apple hype is largely started by some paid nerds who obviously are not the brightest- nor ethical- students.
I don't want it too cheap, cause it will kill resale on premium iPhone 5's.
Apple actually thinks of these things.
Unlike Samsung, who release a phone in May or whatever and they are already spreading release dates about their SGS5 - because it was a flop in comparison to the one it always tries to catch- the iP5.
Don't kid yourself- the iPhone 5C is being all it needs to be. An older very capable phone that is now a bit cheaper and more fun.
You want the latest? Get the 5S.
Tell me, how many old sgs3 etc still hold their own now against iPhone 5??
Sgs 3 is Discounted rubbish plastic- and the anti apple hype is largely started by some paid nerds who obviously are not the brightest- nor ethical- students.
Best Buy was just selling them for $1 (though that promotion seems to have ended). Not sure how much closer to free you could get.
Normally, I'd agree that Apple wouldn't be worried about production line costs given that they're going with the Made in USA Mac and such. But back when the iPhone 4 was announced, there were articles talking about Foxconn needing to go buy 1000 high-precision milling machines at $20,000USD a piece. (Web search turns up this )
That's $20 million in milling machines. Which isn't that much money for Apple. Except that when ownership is typically single units, you can't expect there to be all that many of these in existence to buy.
I don't know what the manufacturing difficulty is between the iPhone 4 and iPhone 5 enclosures. But given that Apple likes to play hard in this area, it's likely that there's special machinery involved that is not only expensive but also impossible to buy in the quantity that Apple needs.
I can't say I'm sure that this is the case, but it seems to me a compelling story. Maybe you're right that it's simply a market strategy. Personally, I would have expected a more differentiation than the shell if it were a market play.
In stead of jumping to conclusions people should wait until the 5C is introduced in all markets. Looking at the list of countries, many of those that are likely to be more receptive of the 5C haven't had the launch yet.
I just don't buy this argument. Do you really think Apple could have purchased 1000 of these things last year and not been able to purchase AT LEAST 1000 over the course of the following year? Its not like a company would only build a thousand of these things and quit. Certainly the manufacturer could have met Apple's order of another 1000 after 365 days.
Witnessed this first hand today.
I believe it. Best Buy had shelves full of 5Cs but maybe 12 5s iPhones.
I believe it. Best Buy had shelves full of 5Cs but maybe 12 5s iPhones.
What market?
Apple grows faster than the phone market, but slower than the smart phone market. Because cheaper and cheaper smart phones appear and are bought by people who used to buy a cheap feature phone, who have no actual need for the smartness of a smart phone, but buy one and never use its features because they are there and cheap.
Apple's initial highly optimistic goal was 1% of the total phone market. Last number I read was 7.2% of the _total_ phone market, with the percentage going up every year. You could also take the total phone revenue. If Apple sells one iPhone for $600, someone else sells two Android phones for $300 each or six really cheap ones for $100 each, and another company sells 30 ultra cheap $20 phones, it seems insane to say that Apple has a lower share of the market when everybody has the same $600 revenue.
Some people actually think it is free. It's sad, but they do.
I know two young girls whose birthdays are coming up soon at around the same time. One asked her parents for an "almost free" iPhone and the other asked for a really expensive watch (around £250). So which present do people think is more expensive? A £50 phone or a £250 watch?
When the 5C was announced I predicted this with precision:
https://forums.macrumors.com/showthread.php?p=17824968#post17824968
and was flamed by many of the fanboys on this site who are know proclaiming to have known this all along.
The 5C price drop comes soon enough.
https://forums.macrumors.com/showthread.php?p=17824968#post17824968
and was flamed by many of the fanboys on this site who are know proclaiming to have known this all along.
The 5C price drop comes soon enough.
-35 + 75 = +40% increase in iphone production at higher profit.
I'm sure apple folks are laughing at pundits.
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Why? See above.
I'm sure apple folks are laughing at pundits.
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Why? See above.
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.
While I think that your argument stands well for contract-subsidized model, the original claim was about non-contract prices, which make sense in many places where there are no carrier subsidy
I seriously hope that was a joke, and that you don't actually believe something like that would ever happen.
$300, off-contract, and those figures would be reversed
You're not wrong . . . too highly specced . . . too highly priced.
I agree, seems simple doesn't it.
In Apple's mind (and with all of the market analysts they pay a gazzillion bucks to) it was supposed to address the lower end of the market.
You're correct though by producing what they did it's neither one thing nor the other.
That's not true. Like you, I want the "latest and greatest" ideally. I'm into gadgets and thankfully have been fortunate enough to indulge myself most times, but there's a massive market that Apple recognised for people who don't need / want that.
They've failed to address it properly.
I've been saying similar since rumours of the 5C first started. 4S internals, but in with the release body / screen and an acceptance by Apple of slightly lower than obscene profits, counterbalanced by high volume sales because it's priced correctly
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