I'm on-site on a daily basis. I could understand the lightning cable switch but still, why not keep the 3 with its retina display over the 2?
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Apple Increasing iPhone 5s Production by 75%, Cutting iPhone 5c Orders by 35%
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I'm on-site on a daily basis. I could understand the lightning cable switch but still, why not keep the 3 with its retina display over the 2?
Reduce 5c orders by 35%.
Increase 5s orders by 75%.
Yes, Apple is doomed
Yep so sad for Apple that their mid-tier product is selling basically only as well and all the growth is coming from the higher end.
I'm TC is going to just cry when the board tell him his yearly bonus will be higher than last year.
$300, off-contract, and those figures would be reversed
And apple would make how many billions less each quarter if they shifted buyers into a $300 phone instead of the $700 phone?
"Spin" at it's finest.
I love Apple...but the BEST situation for Apple would be to boost production of BOTH devices. Especially since Apple's success in Asia seems to depend so heavily on the 5C
What you have said means nothing. The gross revenue per phone is a meaningless stat. If we are to believe the rumours then the 5c has higher margins than the 5s (due to the plastic construction and previous generation internals) so if the total number sold stays the same but it's a higher percentage of 5s then Apple is supposedly in a worse position as they have overall less phone margins and therefore less phone profits.
Saying a higher percentage of 5s sold is not automatically a good thing for Apple like this article says. It is incorrect in reporting this. We need to wait for the conference call and see what the exact margins for each phone is, if Apple release these figures. Then we will know if a higher percentage of 5s sold is a good thing or not.
The article writer here does not seem to know the difference between revenue, product margins and profits and which is better for a company.
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Nope. Apple innovate. And when you innovate you have hits and misses. Not every innovation will be a wild success. But this is required to move the industry along. As long as Apple break even on their not so popular innovations and rake in the cash on the popular innovations, then Apple is in a good place.
And great news overall. Most companies would like customers flocking to their more expensive products.
If Apple's goal is to market all flavours of the iPhone as luxury items that target a niche market of users who are prepared to pay more for the Apple experience… then yes, fine strategy. Their marketshare will continue to fall but they will maintain healthy profits.
Some of us just thought Apple might want to become price-competitive with the competition while the iPhone brand is still prominent in the average buyer's mind. I think there is a huge market for a cheaper iPhone, which could eat into the competition's marketshare, more than the 5s's—but Apple is turning its back on it.
I think the switch to lightning was enough to kill the iPad 3 (well, the heat also helped) and Apple still needed the cheaper to manufacture iPad 2 to have something to offer to price-sensitive organizations, schools, government agencies, etc.
Great news!
People just see what they want to see, a lot of people cannot do the math. 75% increase on high-ends and 35% cut off lower-ends Indicate more total sales than their original expectations, I am sure it is better than last year, which was a record itself.
Verizon's report is out, iphones aren't losing market share, instead they gain more shares, they account for 51% of Verizon smartphone sales compared to 43% last year, and they sold 3.9M iphones vs. last year's 3.1M that's 25% YOY growth. I am sure both 5s and 5c contribute to this success.
AT&T report will be out Oct 23rd, i am sure we will hear more good news soon.
People just see what they want to see, a lot of people cannot do the math. 75% increase on high-ends and 35% cut off lower-ends Indicate more total sales than their original expectations, I am sure it is better than last year, which was a record itself.
Verizon's report is out, iphones aren't losing market share, instead they gain more shares, they account for 51% of Verizon smartphone sales compared to 43% last year, and they sold 3.9M iphones vs. last year's 3.1M that's 25% YOY growth. I am sure both 5s and 5c contribute to this success.
AT&T report will be out Oct 23rd, i am sure we will hear more good news soon.
Apparently it's shocking to Apple.
The company that made the products is the only one who didn't see this coming. Guess that reality distortion field is just as strong as ever...
I dunno, but the 4s sold well last year after the 5 came out, and the 5c is a lot closer to the 5s than the 4s was to the 5.
Went to 3 Apple store around my area. All sold out, even the non-popular "Space Grey"...
After the 3rd Apple store, went to that nearby at&t and asked very nicely to buy it out right without doing anything to the current contracts.
Walked out with the Space Grey 64GB and about $900 reduced from bank account.
So, there are stock somewhere but they are not letting those go easily...
After the 3rd Apple store, went to that nearby at&t and asked very nicely to buy it out right without doing anything to the current contracts.
Walked out with the Space Grey 64GB and about $900 reduced from bank account.
So, there are stock somewhere but they are not letting those go easily...
4 also had heat issues, and contrary to what apple wanted people to believe, is not that big of an upgrade over the 3 (which at least added retina over 2)
I think it was the lightning cable + mini. You can't have a mini sibling with latest and greatest
Of course not. That was the whole point of my post. For a while, Apple can increase sales 5% year over year. But eventually, the loss of market share will reasch a threshold where Apples settles into it's comfortable spot as commodity player in the smart phone market like it did in the PC market.
What MAN would walk around with a 5c with its girly colours
...bright colours are "girly"?
Understandably, MacRumors posters don't have the best business sense
But that's why I appreciate your post.Apple sells a lot more iPhones because not only are the expected consumers buying the iPhone 5S, but some price sensitive consumers will now consider the 5C where as they wouldn't have bought the 5S anyway. Apple now has more customers, and therefor more revenue.
The risk they are taking though is brand integrity. If Apple starts dipping into "non-luxury" or "non-product-leadership" phone territory, that makes the phone less exclusive, luxurious, and masterful, which lessons the meaning of owning the iPhone brand. They are starting to muddy up their brand message a bit but they may be able to pull it off with pre-emptive messaging (eg. "un-apologetically plastic"). It's also an attempt of clarifying that their iPhone 5S is masterful, and saying their iPhone 5C competes with Samsung/HTC phones when it comes to customer intimacy (ie., the many colors you can choose and customize to your personality needs).
It's a brand marketing judo move. Subtle, subliminal, and it may work over time. We'll see what they do next year.
Seems like people are forgetting that Apple are forward thinking and set themselves up for the future.
What will happen to the 5C when the iPhone 6 is released? It will still play the same role as the alternative to the latest and greatest. Will it keep the iPhone 5 internals? Probably, the target audience won't really care or be educated in this field.
Will this be even cheaper to manufacture? Yes. Will Apples margins be even more healthy? Definitely.
iPhone 5C seems like a long term commitment. Prices will go down in time.
What will happen to the 5C when the iPhone 6 is released? It will still play the same role as the alternative to the latest and greatest. Will it keep the iPhone 5 internals? Probably, the target audience won't really care or be educated in this field.
Will this be even cheaper to manufacture? Yes. Will Apples margins be even more healthy? Definitely.
iPhone 5C seems like a long term commitment. Prices will go down in time.
When it comes to the 5c, almost everyone misses the mark on what Apple was looking for. They were not looking to sell a "cheap" iPhone.
Instead they were looking to convert former pre-teen iPod touch owners.
Since most cellular carriers changed their family plans. It is now relatively cheaper to add your high school kids to your plan. Before, most of us gave our kids ipod touches which satisfied their needs. It had everything the iphone had without cell data which was too expensive at the time.
Now, like with my kid, I can add him to a family plan and get him an iphone. The colorful 5c is right up his alley as most of his friends have them.
Instead they were looking to convert former pre-teen iPod touch owners.
Since most cellular carriers changed their family plans. It is now relatively cheaper to add your high school kids to your plan. Before, most of us gave our kids ipod touches which satisfied their needs. It had everything the iphone had without cell data which was too expensive at the time.
Now, like with my kid, I can add him to a family plan and get him an iphone. The colorful 5c is right up his alley as most of his friends have them.
Because the growing markets aren't areas where the current price point is feasible. So yes...lowering the price would absolutely make business sense, especially in the long term (and if they can maintain quality).
The real money is where there's growth. That's one of the simplest rules of business. LET ME REPEAT THAT. The real money is where there's growth.