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Apple Slashes iPhone 5 Part Orders Due to Weak Demand
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It's called an opinion, I have one, is that a crime in your book or do you need a gun to get yours across?
I wouldn't start panicking if I were Apple. They're still selling huge volumes and it's a great device. Problem is, that a growing portion of the market are just not finding the 5 a compelling device.
Speaking for myself, the last iPhone I had was the 4, I never liked the glass sandwich design - wouldn't touch the Nexus 4 for the same reason - but I couldn't resist that screen. It was amazing. It was the same when the HTC One X came out, I had to have it. iOS I find badly dated as well, it just needs to have a radical redesign before I'd switch back. I'd even love to give WP8 a try, but I'm not sure the support is there. I've also come to love the giant screen, although I admit they're an acquired taste. Lightening connectors/cables piss me off as well, they should have switched to micro-usb - Apple's standard is pure profiteering while offering no real advantages.
Speaking for myself, the last iPhone I had was the 4, I never liked the glass sandwich design - wouldn't touch the Nexus 4 for the same reason - but I couldn't resist that screen. It was amazing. It was the same when the HTC One X came out, I had to have it. iOS I find badly dated as well, it just needs to have a radical redesign before I'd switch back. I'd even love to give WP8 a try, but I'm not sure the support is there. I've also come to love the giant screen, although I admit they're an acquired taste. Lightening connectors/cables piss me off as well, they should have switched to micro-usb - Apple's standard is pure profiteering while offering no real advantages.
Are you sure they just didn't reduce it for this quarter, because they increased it for last quarter?
Well the whole "maps fiasco" was covered extensively in the media so that can also have an effect on people buying the phone.
iOS 6 in general is a letdown compared to say iOS 4/5 where we finally seen folders, background wallpapers, cloud integration, twitter/facebook (facebook should of been in iOS 5 along with twitter)
Apple needs to shake it up and show iOS 7 at WWDC and it has to "wow" another year of "oh the next update will have widgets etc" isn't going to cut it with most people.
iOS 6 in general is a letdown compared to say iOS 4/5 where we finally seen folders, background wallpapers, cloud integration, twitter/facebook (facebook should of been in iOS 5 along with twitter)
Apple needs to shake it up and show iOS 7 at WWDC and it has to "wow" another year of "oh the next update will have widgets etc" isn't going to cut it with most people.
AAPL earnings report is January 23. They are really going to have to blow the doors off if they want to reverse the perception trend (and let's face it, perception unfortunately matters as much as fundamentals in the market). Just meeting forecasts will probably elicit a big yawn.
How do you sync with iCloud if you have Android? I ask because I'm thinking to switch from iPhone to Android, but I wish I could also keep contacts in iCloud. I have an iPhone 4 and use iCould on Windows, but after I used for a week an HTC One X I started to like Android. The big and beautiful screen and the cool widgets!
Ok well the stock is down 5% overseas, I can only imagine what it will do today over here. I know Apple can't/won't comment on every rumor that comes out but this is not just any rumor and its coming from the WSJ not some crappy source like DigiTimes.
Yeah ANdroid is the best now and ahead of the time. Happy?
ANd PS your comment ignores the fact that people dont post on positive threads about Apple, like how the ipad dominated web traffic of tablets etc. But they pour into EVERY negative threads about Apple to "express their honest opinions".
The people that bash Apple but don't use Apple products... are jealous of Apple's success.
The people that bash Apple, but currently use Apple products... are valid critics, and are the people with constructive criticism that Apple should listen to.
I'm not sure why this Topic devolved into an "iOS versus Android" pi$$ing match. The rumor that iPhone parts orders may be slowing down has no provable direct correlation to the quality of Apple products. Heck it could simply be something totally unrelated, like the fact that some inventory/manufacturing executive at Apple simply mis-judged (overestimated) the post-Holiday demand for the iPhone 5. If that was the case, then the executive who made the supply/demand calls for iPhone parts orders really made a bad forecast. He probably might be lose his job.
Frankly, I think the MODS should just close this thread, as it has quickly declined into another iOS-versus-Android flame war.
I really like my iPhone 5, it's a speedy phone that does what I want. However I don't know anyone who owns one. Most people are sticking with their 4/4s or have gone to Android.
I do think the phone will need a huge shakeup of its OS or design before sales really kick off again.
I do think the phone will need a huge shakeup of its OS or design before sales really kick off again.
This probably won't happen until Ive really gets a chance to take over the software side and I don't see any way that happens this quickly, I'm thinking 2014 at the earliest before he puts his stamp on it. And we don't even know if Ive will be capable on the software side, or what direction he will take it in.
I'm an AAPL shareholder but even I have to admit I haven't felt this much uncertainty, about the company and the stock, in years. I'm not giving up on them but I would like to see what they've got coming up because while I still think Apple products are great, I do think they've gotten a bit complacent and they need to shake it up. That doesn't mean completely throwing away everything that has brought them success so far, but they need to show they can adapt as well as innovate.
I laugh at people decrying the cost of the phone, when the cost is the Service. People happily see $120-$200/month on superficial `smartphone' chit chat, texting, and all sorts of extraneous uses that add enormous charges by the carriers over the course of 2 years, yet scoff at the cost of the phone?
Hardly.
not surprised really
I found it a "meh" upgrade
The real innovation going forward is in the OS I think, not so much in the hardware.
I found it a "meh" upgrade
The real innovation going forward is in the OS I think, not so much in the hardware.
I laugh at people who complain that the phone doesn't look different enough when the look of the phone has very little if anything to do with how it's used.
When Siri was iPhone 4S-exclusive, everybody in the Anti-Apple crowd blamed Apple for withholding features from the older device, being greedy.
When iOS 6 on iPhone 5 was exactly the same as iOS 6 on iPhone 4S, Apple isn't innovating enough and there's no reason to upgrade.
So - maybe Apple should shut down the company and give the money back to the shareholders?!?!
After all, whatever they do - they can never please everybody.
So far, they managed to sell a large enough number of devices to be relevant for developers and they managed to earn most of the profits of the smartphone market.
Maybe they are doing something right
Their earnings report on the 23rd is the reason this rumor is spreading now - because some bastard wants to weaken the stock, buy - and wait til the 23rd, when Apple will debunk this rumor by revealing (as usual) more demand than ever.
That day, the stock will rise again and the sources of WSJ will have made a small fortune.
Stock is down $18 pre-market. Will be curious to see where it ends up at the end of the day.
A statement that rings true with any Apple product update is that you can please some of the people some of the time...
No doubt when iOS 6 is available, we'll have critics asking for Jonny Ive to be hanged, and others suggesting he's the next messiah.
No doubt when iOS 6 is available, we'll have critics asking for Jonny Ive to be hanged, and others suggesting he's the next messiah.
The recent lack of interest isn't related to the new low-cost option rumor currently making its way through the media as some suggest.
I am an avid Apple user who currently owns or have owned: every iPhone except iPhone 5, every iPad except the latest iPad, iPad Mini, iPod Touch, iPod Nano, MacBook Air's 11" and 15", MacBook Pro 17", and iMac 27". So I feel I am at least somewhat qualified to give an educated opinion on my thoughts as a diehard Apple consumer.
Some of what we are seeing with the iPad is a smoothing effect. When Apple chose to speed up the product releases, it is common to see a reduction in the number of units sold, with the effect being that more product launches will yield the same, or greater, number of units on a per annum basis. Instead of one big peak in sales per year, we will see two or more smaller peaks in sales. This is a good thing for Apple as long as they can sustain their sales units throughout the year.
The biggest challenge I see is with the iPhone. I believe Apple made a grave mistake in deciding to make the iPhone 5 longer and not wider. As a consumer, I don't care if I have to use two hands to type on my phone. I do so already with my 4S. Consumers are using their phones to do more and more things and screen real estate is a large part of their purchasing decision. I have even considered moving to Android simply because I want a larger screen; however, Android sucks and it's just not worth it right now; however, I did choose to forego upgrading to the 5 for this reason. I don't care about a longer phone....I want a WIDER phone.
My thoughts are for Apple to abandon the idea of making an entirely new, less expensive iPhone, and instead, offer three different sizes. The current 4S could now become their free phone and/or opening price point (economies of scale should have drastically reduced their costs in order to make this a feasible option), the 5 could become their mid-level phone, and the upcoming 5S or 6 could become their best phone, offering wider screen similar to Samsung's latest offerings.
While doing so, it will be important for Apple to keep their current pricing on the "best" (5S or 6) phone ($199, $299, $399), offer a slight discount on their mid-level (current 5) phone ($99, $199, $299), and then offer their entry level (4S) phone for free, $49, and $99 depending on capacity.
Clearly, this model would be contingent on the fact that Apple maintain their current margins, which I believe can be done. Selling more phones means selling more apps and music which is where the big profit margins are. By giving the consumer options among a wide spectrum of price points, Apple can sell a TON of phones, meaning higher profits in the way of apps and music.
I am an avid Apple user who currently owns or have owned: every iPhone except iPhone 5, every iPad except the latest iPad, iPad Mini, iPod Touch, iPod Nano, MacBook Air's 11" and 15", MacBook Pro 17", and iMac 27". So I feel I am at least somewhat qualified to give an educated opinion on my thoughts as a diehard Apple consumer.
Some of what we are seeing with the iPad is a smoothing effect. When Apple chose to speed up the product releases, it is common to see a reduction in the number of units sold, with the effect being that more product launches will yield the same, or greater, number of units on a per annum basis. Instead of one big peak in sales per year, we will see two or more smaller peaks in sales. This is a good thing for Apple as long as they can sustain their sales units throughout the year.
The biggest challenge I see is with the iPhone. I believe Apple made a grave mistake in deciding to make the iPhone 5 longer and not wider. As a consumer, I don't care if I have to use two hands to type on my phone. I do so already with my 4S. Consumers are using their phones to do more and more things and screen real estate is a large part of their purchasing decision. I have even considered moving to Android simply because I want a larger screen; however, Android sucks and it's just not worth it right now; however, I did choose to forego upgrading to the 5 for this reason. I don't care about a longer phone....I want a WIDER phone.
My thoughts are for Apple to abandon the idea of making an entirely new, less expensive iPhone, and instead, offer three different sizes. The current 4S could now become their free phone and/or opening price point (economies of scale should have drastically reduced their costs in order to make this a feasible option), the 5 could become their mid-level phone, and the upcoming 5S or 6 could become their best phone, offering wider screen similar to Samsung's latest offerings.
While doing so, it will be important for Apple to keep their current pricing on the "best" (5S or 6) phone ($199, $299, $399), offer a slight discount on their mid-level (current 5) phone ($99, $199, $299), and then offer their entry level (4S) phone for free, $49, and $99 depending on capacity.
Clearly, this model would be contingent on the fact that Apple maintain their current margins, which I believe can be done. Selling more phones means selling more apps and music which is where the big profit margins are. By giving the consumer options among a wide spectrum of price points, Apple can sell a TON of phones, meaning higher profits in the way of apps and music.
yawn
its amazing all these comments are on the assumption that iPhone
sales are decreasing. Stick around for January 23 when Apple
releases their earnings!! We will than see /time which phone sold the most .
I predict the iPhone 5 will have blown away the sales number of the 4/4s
looking back at their respective launches. Investing for over 20 years in Apple
stock I learned early to not listen to the noise.
As far as Apple not innovating: Anyone in the business knows it is much
harder to innovate to the smaller size than the larger size.
The iPhone 5 is lighter, faster and yet has a larger better screen than the 4
its a big difference if you actually have owned both! The A6 blows away the processor on the Samsung Galaxy 3 go check out AnandTech a non biased
site The A6 processor is close to 3 time as fast as the galaxy 3 and it uses significantly less battery! That is innovation!!
My friend just bought a galaxy 3 she is on the same network as me at work.
She noticed by 10:00 in the morning her phone had only 40% power left
mine was near 100% those are the thing people care about.
Also if you do your homework from information already released the iPhone 5 has outsold any single samsung smart phone. Why do you think Samsung
spends 4 times as much money advertising their phones than Apple?
Why do you think Samsung needs to target Apple in their Ads?
Samsung wins by flooding the market with a myriad of models most of them junk and cheap to the consumer. Apple wins by only selling "luxury phones at a higher margin"
EVeryone bitches apple is not innovating can someone please describe a game changing innovation from Samsung? Their screens are bigger and thats about it. I f you are in the movie business you know the colors of the s3 are completely inaccurate and do not compare to the quality of the iPhone.
I Personally think Apple is doing a great job at what the have always done.
its amazing all these comments are on the assumption that iPhone
sales are decreasing. Stick around for January 23 when Apple
releases their earnings!! We will than see /time which phone sold the most .
I predict the iPhone 5 will have blown away the sales number of the 4/4s
looking back at their respective launches. Investing for over 20 years in Apple
stock I learned early to not listen to the noise.
As far as Apple not innovating: Anyone in the business knows it is much
harder to innovate to the smaller size than the larger size.
The iPhone 5 is lighter, faster and yet has a larger better screen than the 4
its a big difference if you actually have owned both! The A6 blows away the processor on the Samsung Galaxy 3 go check out AnandTech a non biased
site The A6 processor is close to 3 time as fast as the galaxy 3 and it uses significantly less battery! That is innovation!!
My friend just bought a galaxy 3 she is on the same network as me at work.
She noticed by 10:00 in the morning her phone had only 40% power left
mine was near 100% those are the thing people care about.
Also if you do your homework from information already released the iPhone 5 has outsold any single samsung smart phone. Why do you think Samsung
spends 4 times as much money advertising their phones than Apple?
Why do you think Samsung needs to target Apple in their Ads?
Samsung wins by flooding the market with a myriad of models most of them junk and cheap to the consumer. Apple wins by only selling "luxury phones at a higher margin"
EVeryone bitches apple is not innovating can someone please describe a game changing innovation from Samsung? Their screens are bigger and thats about it. I f you are in the movie business you know the colors of the s3 are completely inaccurate and do not compare to the quality of the iPhone.
I Personally think Apple is doing a great job at what the have always done.
Earth to alternate reality: Apple never dominated a single market in the '80s or '90s. Not until the iPod and later the iPhone/iPod Touch/iPad has Apple ever had a dominant market share in total volume sales.
Keep rewriting history, if it makes you feel better. Apple's top market share in PCs was around 12%, globally.
Arstechnica went over the last 30 years:
http://arstechnica.com/features/2005/12/total-share/10/
Read the entire article for perspective, but note on page 10 this chart reveals history:
In short, Apple is about to eclipse its highest ever % of PC Sales this year and you want to talk as if back then they dominated the industry.
IBM was always dominant and it entrenched itself thanks to both COMAQ reverse engineering the BIOS and Microsoft creating and contractually binding the entire OEM Market to its inferior OS.
Without this happening, Apple doesn't become what is is today all thanks to ignorant business men listening to the likes of the WSJ, instead of being run by engineers.
Tim Cook is an Industrial Engineer, by education. The man is growing Apple, while maintaining their profit margins on products that cannot meet their global expansion demands.
Manufacturing allocation is by region. Rolling back production output in one region appears to be a veiled call to sell a stock and drive its P/E into absurdly low territory, when it just means that region is cutting down its materials requirements for the quarter before they transition into a new product production expansion. Meanwhile, new markets expanding require a redirection of materials to compensate the demand that is opening up in CHINA [Far East Region].
As a Mechanical Engineer I find it not surprising people have no conception behind Global Manufacturing and Product Distribution. I find it criminal that the SEC and the DoJ doesn't put an end to the market manipulation of Wall Street who themselves know a well placed article creates fervent trading.
RIM:
Unlike a one-trick pony, RIM, Apple is a complete Hardware/OS Ecosystem corporation that has reinvented the entire direction of the IT Industry and it's many offspring. The entire MEMS industry, Fab industry and much more have completely redesigned themselves to adapt to the Embedded space, along with traditional silicon spaces, with Apple pushing them to evolve or die.
Samsung has completely redesigned its direction because of Apple. Nokia is nearly dead because their own arrogance ignored Apple. Microsoft is and will continue to be stagnant for years to come. That Gorilla has been sent out to pasture.
Google is dying to be everything it was founded on, plus everything Apple has done, while overlooking Amazon.
Apple continues to target itself in a streamlined fashion and be the best of breed in those areas where they focus.
WSJ leaks stories on high volume, low margin phones to weaken the stock. That drives the stock down, then Reuters counters with a story from Schiller which drives stock back up [Trading up and down individuals love it] and then Reuters recanters driving stock down but stable.
WSJ comes out with a speculation and no facts from inside `sources' and flushes out more stock to then be gobbled up by fewer and fewer big fish.
Apple will trounce on numbers as they have been doing quarter over quarter since Tim came to Apple.
Most stocks are garbage, stagnant and hold very little tangible value in the IT world. WSJ knows it and doesn't like the size of Apple's leverage over the NASDAQ. They'll hate it even more with each quarter the world economies continue to rebound.
Meanwhile, Apple will continue to reap large percentages of the industry profits with their eye on quality and growing ecosystem of developers.
Amazon will be battling with Google on cloud services and more.
Apple will continue following their own path with the largest ecosystem in the embedded world.
With a larger screen size imminent to hit a sweet spot between the 5 and the Samsung latest Apple will continue building the highest material quality driven embedded products and if you follow their patent focus will deliver on it.
But do you think it might be because so many people bought the 4s within the past 12-14 months (those models make up most of the iPhone owners I know...friends, family, co-workers, etc.) and, therefore, aren't eligible for the lower, subsidized pricing for a 5?
Regular (sane) people don't buy new phones every cycle, and certainly not paying the full, unsubsidized prices.
Seems like a ton of people came on board with the iPhone in 2011 (including some even with the iPhone 4 in the first half of that year). It hasn't been two years yet for all these people so they're not yet able to get the iPhone 5 for $199-399.
It could be that simple...timing.
Of course Apple has weak demand, everyone already has an iPhone. The more they keep releasing, the less new customers there will be.