Chinese Officials License iPhone to Run on China Mobile's Wireless Standard

[paradox00]

But I don't think it's every happened the very DAY of any keynote. Typically this only happens a few weeks later as the hype and enthusiasm dwindles.

No. This is different.

No. You just have a poor memory. Reaction is almost always immediate and negative. Stock prices slowly rise after that.

http://www.digitaltrends.com/apple/why-does-apple-stock-fall-with-new-products/

This is due to preconceived notions of what Apple should do. It takes a while for the market to determine what Apple actually did and what that impact will be.

 

[Banyan Bruce]

5C pricing...

I hope Apple get panned in China for the pricing regime they have introduced for the 5C. An OK phone at a rip off price.

Apple, I hope this greed gets exposed and the 5C failure teaches you a lesson.

Android/MS if you want the middle ground and can get organised, Apple have just snubbed their nose at it and said you're welcome. The 4/4S is not really suitable competition for a modern Android phone, so chaps go for it, as there is precious little growth left anywhere else in the smart phone market.

 

[kckl]

Stock price always drop when new products announced. Because no more surprises. We'll see next quarter Apple sales to see if 5C is too expensive.

Remember, even Apple admitted that they sold more iPhone/iPad to China than any other countries in the world (not including the underground market). And you think Tim went to meet the Chinese carrier CEO for no reason? And I'm sure they would have said about the pricing if they think it's too high for their own people... You totally under-estimate the potential in China.

That's completely wrong. It's not targeted at China. The iPhone 5C is twice the price of the local competition. You think Apple would have done that if it was targeted primarily at China?

The 5C was simply meant to be a different take on the iPhone. More colourful and a bit cheaper - I think their target market is simply a younger audience. The so called iPod generation who've grown up with colourful devices and are not quite ready for the more conservatively styled 5S.

You're making the same incorrect assumptions that all the analysts made which is why the stock is down nearly 10% since the announcements.

----------

Totally agree! Check this out

http://mashable.com/2012/09/12/iphone-apple-stock-price/

Stocks tank when the market gets something they don't expect. Which is virtually every Apple product announcement. The immediate reaction is one of surprise, not reasoned analysis (sometimes I question if that ever happens), don't think too much about it.

 

[FrozenDarkness]

i think people should realize you only thought iphone 5c should be cheap because of rumors. 99% of the world see iphone 5c and think oh cool more colors.

 

[manu chao]

I love my iPhone but if I was one of Apple's price sensitive customers who would have previously purchased last years model I'd feel insulted and patronized by this for sure. It's like they don't expect me to understand they took last year's model and changed it up.

Next year it will be:

6 - Best
5S - Midgrade
5C - Low End

Or:
6 - Best
6C/5Cs - Midgrade
5C - Low End

But then they might widen the portfolio even more by adding another screen size. They could even release a 5s-l, ie, 5s technology but as a 4.8/5" phone in between, eg, in March.

 

[ActionableMango]

They received a downgrade by many of the major financial groups because of the announcement. Most analysts feel they really dropped the ball on creating a product that is cost efficient enough to tap emerging markets.

Yes. This is exactly why I, as a shareholder, was disappointed. It's the lack of grabbing emerging markets that's the real loss for the stock.

It had nothing to do with 5S features. Everyone knows by now the "S" years don't mean much and we got exactly what the rumors predicted, so anyone expecting otherwise is ignorant.

 

[Jvanleuvan]

I was talking with my coworker, we think that maybe this Iphone 5c exists to protect margins instead of lower the cost of the Iphone.

We speculated that the apple wasn't able to hit it's discounted price targets with Iphone 5. owing to it's more expensive contruction. So the standing plan of reducing last years phone by $100 would hurt apples margins too much. So, they designed a new casing that is cheaper to produce, and they hope, more attractive as a true "new" second Iphone model. And this will help them maintain their margins.

Just speculation...

 

[kimvette]

Yes, Apple basically chose profits over market share.

That does work - for a quarter or two, then the profits start dropping as market share continues to dwindle, then to maintain profitability the company needs to either start slashing costs (read: massive layoffs) or start raising prices (further eating into market share since the product has stagnated and is riding on only reputation, and therefore severely injures long-term financial health).

Still think Tim's gotta go. He's a Bean Counter. Not a presenter and certainly not a motivator.

Agreed. I am looking forward to what the iPhone 6 will be - hopefully it won't be just a 64GB (with no SD slot) small-screen iPhone 5 with pretty colors and a fingerprint reader. I had high hopes for the new iPhone but when the leaks were turning out to be very consistent the last few months and my iPhone 4 starting to flake out and also with it being slow, I had to upgrade and I couldn't bother with the iPhone 5(n). For me the S4 was a huge upgrade, and offers a lot of features I would expect Apple to offer first. Apple is seriously lagging in laptops, workstations, and in the smartphone market and their current stagnation is bound to catch up with them sooner or later as Android offerings continue to mature.

 

[numlock]

Hopefully they've learned a few lessons from that period. Look Jony Ive is still there, most of the people who made the company what it is today with Steve are still there. What they need is a new visionary leader and IMHO Tim Cook is not that person. Look what happened to Microsoft after Ballmer took over from Gates and it took them 10 years to realise it.

jony ive is as big a part of the problem as anyone else there

 

[Krazy Bill]

No. You just have a poor memory.

And you have poor comprehension skills.

Reaction is almost always immediate and negative.

A keynote event/announcement rarely causes Apple's stock to dip the very same day. Specifically, the iPhone. It typically erodes over a few weeks but not a 6% slide in one day.

Stock prices slowly rise after that.

We're still waiting

 

[mackinmike]

China users must really want/like iOS to buy the new ip5c. Given that there are cheaper alternatives with pretty much the same app selection, I fail to see why users in China will pay a premium for an iPhone. My only reasoning is they really like iOS cuz it aint about the look and feel of the phone anymore. The ip5c is ugly.

 

[Krazy Bill]

jony ive is as big a part of the problem as anyone else there

No. It's the Board of Directors. They aren't asking the right questions and aren't demanding the right things from Cook. In the past, the BOD has been more like observers that just "got out of the way" while the goose laid golden eggs. I seriously don't think they know how to "direct".

Cook rightfully had a grace period following Jobs but I think that honeymoon is over.

 

[BigHonkingDeal]

And you have poor comprehension skills.



A keynote event/announcement rarely causes Apple's stock to dip the very same day. Specifically, the iPhone. It typically erodes over a few weeks but not a 6% slide in one day.

View attachment 432578

We're still waiting

Apple crumbles under wave of downgrades

http://www.marketwatch.com/story/ap...to-new-iphones-2013-09-11?link=MW_latest_news

 

[Meandmunch]

Apple is going to need another money bin.

I am impressed by all the business savvy folk here in the forums that think they know how to run Apple better than Apple.

They are gonna make a killing selling the new 5s and especially the 5c abroad. The 5c was not developed to be sold solely as a cheap iPhone it was developed to be sold as an iPhone with a substantially larger profit margin. Sure it will marketed that way, and doe indeed appear that way to the consumer but the truth is in the bottom line.

 

[terraphantm]

There's always a somewhat negative market reaction to an Apple announcement, but I don't remember it ever being this bad. 6% in a day and being downgraded is a more negative response than usual

I like Apple, but I really hope these iPhones sell poorly. Then maybe they can use that cash reserve to develop a proper smartphone

With the iPhone 4 being a major exception, undoubtedly due to the drama around the leak, the stock doesn't do *that* badly immediately after an announcement. Usually they're up by day 2, and this time they're.. not.

 

[BigHonkingDeal]

I like Apple, but I really hope these iPhones sell poorly. Then maybe they can use that cash reserve to develop a proper smartphone

I totally agree with that. I loaded the GM IOS 7 on my iPhone 5 last night and am done for the year. For the first time since 2007 I will not upgrade this year......

 

[paradox00]

And you have poor comprehension skills.



A keynote event/announcement rarely causes Apple's stock to dip the very same day. Specifically, the iPhone. It typically erodes over a few weeks but not a 6% slide in one day.

View attachment 432578

We're still waiting

iPhone (announced June 29, 2007)
Closing prices
June 28: $117.23
June 29: $118.69

iPhone 3G (announced June 9, 2008)
Closing prices
June 6: $180.54
June 9: $176.53

iPhone 3GS (announced June 8, 2009)
Closing prices
June 5: $140.70
June 8: $139.90

iPhone 4 (announced June 7, 2010)
Closing prices
June 4: $248.93
June 7: $244.05

iPhone 4S (announced Oct 4, 2011)
Closing prices
Oct 3: $364.32
Oct 4: $362.28

iPhone 5 (announced Sept 12, 2012)
Closing prices
Sept 11: $645.22
Sept 12: $654.20

iPhone 5S (announced Sept 10, 2013)
Closing prices
Sept 9: $506.17
Sept 10: $494.64

Apple stock went down on the same day as the iPhone announcement for all but the original iPhone and the iPhone 5.

PS: Today is not the very same day as the announcement. I don't know why you keep saying that, the markets were still open after the announcement yesterday. Today is the day after. You're right that today is a little out of character (the drop is larger than the norm), but it's just analysts missing the boat on their projections. At the last earnings call, iPhone sales were incredibly solid (even though the iPhone 5 was ageing). Profits were only flat because of declining iPad sales (and significantly improved iPads are coming now). The need for a low end iPhone for emerging markets is not as dire as people think. Certainly not worth a stock downgrade when it's not announced. As mentioned, new iPads are coming, so are a plethora of macs. I have no doubts that this holiday quarter will be a record one.

 

[Twixt]

I think that the prices for an iPhone 5C that is starting at €599 in Germany are far too high. The colors look great but one should not forget that you buy a 2012 smartphone for a price of a high end 2013 smartphone. €499 would have been the max price one could justify. The iPhone 5S however is in range of what one can expect from an update within an existing product line. Since I am still on an iPhone 4, I think about getting a 5S.

I would not pay more than 299 euros for than one...

 

[numlock]

No. It's the Board of Directors. They aren't asking the right questions and aren't demanding the right things from Cook. In the past, the BOD has been more like observers that just "got out of the way" while the goose laid golden eggs. I seriously don't think they know how to "direct".

Cook rightfully had a grace period following Jobs but I think that honeymoon is over.

im not saying its all on him. but lets not act like he just some designer. he has enormous power at the company. and truth be told i think his offerings have been rather uninspired for some time and a company that prides itself on design and class cannot tolerate that.

i have been a nagging voice on this forum because ive seen what i think is a downward trend at the company for a few years now and this is a company whos products ive since i was a few years old and using kid pix

 

[Twixt]

I was talking with my coworker, we think that maybe this Iphone 5c exists to protect margins instead of lower the cost of the Iphone.

We speculated that the apple wasn't able to hit it's discounted price targets with Iphone 5. owing to it's more expensive contruction. So the standing plan of reducing last years phone by $100 would hurt apples margins too much. So, they designed a new casing that is cheaper to produce, and they hope, more attractive as a true "new" second Iphone model. And this will help them maintain their margins.

Just speculation...

Protecting margins would be ok if 5C does sell well, which will not be the case...
That will be exactly opposite scenario with 5S NOT selling well either !

 

[pipspot]

When comparing off-contract price, I'm very sure China mobile has some serious marketing campaign to make it feel good for local consumers.

iPhone 5C off contract claimed list price: $600+

With China mobile 12/24 month commit you pay $200 with a $30/mth plan with Calls / SMS / Internet.

That's how it works, and when people get suckered in by the low entry cost, they'll commit to the sucky plans anyway. It will *seem* affordable

 

[Taz Mangus]

Apple is going to need another money bin.

I am impressed by all the business savvy folk here in the forums that think they know how to run Apple better than Apple.

They are gonna make a killing selling the new 5s and especially the 5c abroad. The 5c was not developed to be sold solely as a cheap iPhone it was developed to be sold as an iPhone with a substantially larger profit margin. Sure it will marketed that way, and doe indeed appear that way to the consumer but the truth is in the bottom line.

^^^ This ^^^ Finally someone who understands.

 

[hayzen]

Ok, so back to the article.

If the license is granted to Apple, does that mean we have to wait for China Mobile to release their own version of an iPhone 5s/c to use their TD-LTE or is any iPhone 5s/c released in China (and Hong Kong) compatible with China Mobile's TD-LTE?

 

[zhenlek]

iPHone on China Mobile

Iphone finally available on China Mobile? This is gonna be huge...

 

[lk400]

I think people are blinded by the new phone. Yes Apple basically released a high margin plastic version of what should've been the same metallic iphone 5 in all previous years. But, it also signals, to me anyway, that apple doesn't think the "free" segment is that interesting. Think about this for a second, what's the point of releasing a new fashionable phone at any price point? In economic, demand and supply has to be there, or in this case, demand is very important.

Apple must have data from past years showing them that the iphone 4S last year sold much better than the iphone 4 pricing segment. That's their sweet spot in terms of both margins and demand and so by releasing a brand new fashionable version, they can attract even more shoppers and raise their margins at the same time

I mean i have no proof of this, but you'd imagine a big company like apple isn't just going to release an iphone for a cheaper price because analysts told them to.

And to people who said they don't think steve jobs would've released a colorful iphone, LOL. This was literally what he did with the ipod.

While im not convinced the overall margins of this phone would be much higher than the 5 on release, i very much agree with you. A lot of work would have gone into working out where to release the second iphone model in terms of price position. Also, for many of us who have used apple for a long time, the colorful phone kind of signifies a going back to the fun and exciting times of when steve jobs rejoined the company.