iPhone 5C is actually intended to replace iPhone 5 says KGI's Mingchi Kuo

[rh1]

KGI’s often reliable Mingchi Kuo is out with his latest Apple Watch forecast with some interesting new info. His latest findings:

1. Components and EMS of the new iPhones will be ready for ramp-up in August and September, respectively

2. Hon Hai begins manufacturing the TDD-LTE-supported iPhone 5C earlier than expected in August

3. TDD-LTE supporting models may see respective penetration of 25% and 35% in iPhone 5S and iPhone 5C shipments

4. iPhone 5 will reach end-of-life at the end of 3Q13, while shipments of iPhone 4S will continue until the end of 2013. From this situation we can infer that iPhone 5C is actually intended to replace iPhone 5, rather than iPhone 4S

5. iPhone 5S will exceed iPhone 5C in shipments.

Extracted from 9to5mac.

If this follows through, how will Apple cease iPhone 5 supply within major markets in the US and Europe?
Will they no longer sell iPhone 5 devices? Will they sell them temporarily like they did with the iPad (3rd generation).

In overall I think this makes sense not to cannibalise the alleged iPhone 5S.

 

[KeanosMagicHat]

I think that's the wrong interpretation of the information by KGI.

From the speculation I've read, I feel the 5C will ultimately replace the 4S as an entry level model and the 5S is an upgrade of the 5 which, unlike previous years, will now not be cascaded down but discontinued.

The only reason that the 4S manufacturing may continue a couple of months longer is a possible overstock of components. In this situation the decision moght have been made to use those up whilst demand for the 4S is still high not only in emerging markets but also established ones like here in the UK.

Strange decision though, as the 5C will be less cost to manufacture given the materials.

 

[rh1]

I think that's the wrong interpretation of the information by KGI.

From the speculation I've read, I feel the 5C will ultimately replace the 4S as an entry level model and the 5S is an upgrade of the 5 which, unlike previous years, will now not be cascaded down but discontinued.

The only reason that the 4S manufacturing may continue a couple of months longer is a possible overstock of components. In this situation the decision moght have been made to use those up whilst demand for the 4S is still high not only in emerging markets but also established ones like here in the UK.

Strange decision though, as the 5C will be less cost to manufacture given the materials.

Yup! That is to be the case as iPhone 4S inventory and components trickle down. This would be a non-issue for the iPhone 5 as they could be used 'with some modification' in either the iPhone 5C or iPhone 5S.

 

[veneto]

They need to rethink that. The iPhone 5C was created as an alternative. How does a device with inherently inferior specs replace a lower priced flagship model?

How does that work?

 

[d123]

He has a point, especially for Europe. The iPhone 5 is slightly crippled for LTE use in Europe, while many networks brought in stopgap LTE on 1800 MHz, it is small in capacity and limited in coverage, the future is with 800 MHz and 2600 MHz and the iPhone 5 is not compatible.

I wouldn't be surprised if the iPhone 5 disappears pretty quickly after September, it is an advertising nightmare for many networks who don't have have 1800 MHz LTE (3 out of 4 networks in the UK, as an example).

 

[KeanosMagicHat]

They need to rethink that. The iPhone 5C was created as an alternative. How does a device with inherently inferior specs replace a lower priced flagship model?

How does that work?

EDIT: I've re-read your post and I missed your point. I think KGI's viewpoint is incorrect and the 5C is indeed an alternative - but to the 4S. The 5 to 5S schedule will continue as per previous generations.

I've not studied the rumoured specifications of the 5C, but I'd be surprised if they're lower than the 4S it'll replace.

Prepared to be corrected of course.

 

[rockyroad55]

Well that's odd. Apple is definitely trying to phase out the 30 pin in favor of the lightning. Why continue to ship a device using outdated tech?

 

[veneto]

I just can't imagine that there will only be a 5C and a 5S, and no 5. Who would buy a 5C, when there's a boatload of 5's laying around for the same price?

They're not even phasing out the 4S either, as iOS 7 will be available on it.

 

[rockyroad55]

I just can't imagine that there will only be a 5C and a 5S, and no 5. Who would buy a 5C, when there's a boatload of 5's laying around for the same price?

And there are always those the associate plastic with cheap too. I'm guessing the pricing was 199/99/Free with 5S/5/5C, respectively.

 

[veneto]

Ooh, so will they be giving away free iPhone 5C's in happy meals? That'd be fun wouldn't it?

 

[cynics]

Why do we need to goto lightning connector so urgently? Aside from ease of use does it do anything better?

Might push 3rd party manufactures to update their docks a little more quickly but that's happening with time right now anyway.

I'll look forward to using a lightning connector when I need to start using an adaptor on my 4S not the other way around. Currently at most places I goto lightning isn't an option. Like ALL the exercise equipment at my gym is 30 pin (50-75 pieces of equipment that cost thousands of dollars each). Or the charging station at the airport I'm looking at, just USB and 30 pin connectors.

 

[pickaxe]

iPhone 5C is actually intended to replace iPhone 5 says KGI's Mingchi Kuo

I also think it's the replacement for the 5 (and 4S as well). The iPhone 5's "scuffy" design is a liability to Apple, both to their image and to their bottom line (it seems that it is difficult to keep decent QC during manufacturing to ensure new iPhones turn out fine).

My guess is 5C has comparable specs to the 5. Actually make that identical specs - saves Apple money from designing a new SoC and allows them to reuse old parts (which as iPad mini demonstrated is probably a big deal financially)