Behind the Scenes of the 'iPhone 5' Case Gamble

[MacRumors]

Businessweek takes a look into the world of iPhone case manufacturers, a few of which had made gambles on what the "iPhone 5" was going to look like.

Since Apple doesn't share case designs until the final product is released, case makers rely on rumors and factory leaks to plan for their new cases. According to the CEO of Coveroo, "If you have a good sense that you have the right measurements and plans, then you can ramp up production." That said, he also warns that guessing wrong could risk losing millions in worthless inventory.

iPhone 5 case images from CaseMate​

The article also interviews Tim Hickman of Hard Candy Cases, the same case manufacturer that we reported seemed confident in a tapered iPhone 5 design immediately before the iPhone 4S announcement. That company bet $50,000 that the new case designs would be dramatically different.

After three separate manufacturing partners in China sent him detailed 3D models of an iPhone with a widened, pill-shaped "home" button and a slightly tapered back, Hickman decided to roll the dice. He paid $50,000 to make steel moldings to mass-produce cases for the new design and, on the morning of Apple's announcement, began taking orders on his website.

Factories in China provide the leaked specs to these case makers in an effort to get their business. According to Hickman using these leaks "pisses Apple off". But guessing correctly can be rewarded with an early ramp up in cases with availability soon after a new product launch. It's this possible financial reward that has tied the case industry so closely with Apple rumors.

Article Link: Behind the Scenes of the 'iPhone 5' Case Gamble

 

[Mr. Pezman]

fail

 

[troop231]

See you next year oh illusive 6th generation iPhone.

 

[sza]

Finally, they get ****ed up.

 

[DrJohnnyN]

Was hoping for this design.

 

[guch20]

Wah wah...

That's what you get for not following Apple's history. It goes number, then number-S, number, then number-S.

 

[Beatbeckham]

Just got my iPhone 4S. Shall avoid talking about iPhone 5 please?

 

[fenwah]

Risk vs reward. Sometimes it works, sometimes you get burned.

 

[Eduardo1971]

These cases must be selling on eBay right about now.

 

[jmpnop]

Pill-shaped home button? Thats the ugliest design I've ever seen!

Anyway these people got what they deserved

 

[vebs]

Wah wah...

That's what you get for not following Apple's history. It goes number, then number-S, number, then number-S.

Considering there was only 1 previous iPhone with the S suffix, there was absolutely no pattern to base this on.

 

[moargolems]

Life sucks, and then you die.

 

[trip1ex]

And how many of the false leaks come from Apple?

 

[Small White Car]

Wah wah...

That's what you get for not following Apple's history. It goes number, then number-S, number, then number-S.

Uh huh. Because 1 instance is enough to recognize a pattern by.

Look, they bet and they lost. Anyone saying the outcome was clear that far back is only using current hindsight as their "evidence."

 

[troop231]

Life sucks, and then you die.

"Stay hungry, stay foolish."

 

[guch20]

Considering there was only 1 previous iPhone with the S suffix, there was absolutely no pattern to base this on.

Maybe not, but it seemed like the most likely scenario. Hell, I was calling it last year and laughing it up as one "analyst" after another said it was gonna be a redesigned iPhone 5.

Think about it like this: if Apple didn't release a 4S and went straight to a 5, it would kinda make the 3GS some weird bastard child of the Apple line. It just seemed right to do a 4S.

 

[this is funah]

ipad mini. next march.

 

[IzzyJG99]

Weird. I always thought that they gave the manufacturers some kind of heads up. They should, and granted that means there would be leaks, but still you don't need to be a butthead and make these companies guess and then go belly up if they get it wrong.

 

[guch20]

Uh huh. Because 1 instance is enough to recognize a pattern by.

Look, they bet and they lost. Anyone saying the outcome was clear that far back is only using current hindsight as their "evidence."

Uh huh.

As long as they didn't ignore the evidence, anyone could have seen this coming. I saw it coming and I'm mostly retarded!

 

[Wondersnite]

Wah wah...

That's what you get for not following Apple's history. It goes number, then number-S, number, then number-S.

Really? You get this from where? From what I recall, there's only been a single iPhone named after a number (iPhone 4) and a single iPhone with an S (iPhone 3GS).

There was never an iPhone 1, 1S, 2, 2S or even an iPhone 3 (that's right, the 3G was the second iPhone).

 

[axcurtis]

case fits?

So the case for the 4 is the same as the case for the 4S? Interchangeable?

 

[FrizzleFryBen]

Weird. I always thought that they gave the manufacturers some kind of heads up. They should, and granted that means there would be leaks, but still you don't need to be a butthead and make these companies guess and then go belly up if they get it wrong.

Any company that bets the farm on a rumor is poorly managed. Betting a small portion of their liquid assets on a rumor that could net huge sales and profit could be considered a smart bet...even if they were wrong.

 

[guch20]

Really? You get this from where? From what I recall, there's only been a single iPhone named after a number (iPhone 4) and a single iPhone with an S (iPhone 3GS).

There was never an iPhone 1, 1S, 2, 2S or even an iPhone 3 (that's right, the 3G was the second iPhone).

Oh wait, the 3G was the second iPhone?! Wow, with your talents and insight, you should be working at the Pentagon! Get offline and get a job there, now!

I guess some of us were able to see the pattern forming a while ago, and the rest of you who thought it would be a 5 are just butthurt that you were wrong.

"Nobody had that kind of foresight!" Yeah, keep telling yourself that while myself and the thousands of others who called this the 4S for the past year will just nod our heads and roll our eyes.

 

[b166er]

This happens in most businesses, especially tech ones. How many products have been announced and never seen the light of day? How many are here for a week and then never seen again? How many go through a dozen design changes (even after release).

Bottom line is, those that can afford to gamble, do. And sometimes they win.

Those that can't, often still do, and sometimes it crushes their bottom line.

 

[chris7777]

We still dont know what Iphone 5 will look like.

I wonder if any of these companies is going to invest in storage space to wait & see if these paperweights, will ever be useful, someday.