Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Robster3

macrumors 68000
Original poster
Dec 13, 2012
1,987
0

aneftp

macrumors 601
Jul 28, 2007
4,363
548
I think Apple has been giving authorized 3rd party retailer most leeway in terms of pricing cuts the past 12-18 months to move products.

We all remember the iPhone 5 was selling for $127 at Walmart last December 2 months after it's release. And iPhone 5 was in huge demand with up to 4 week wait when it was first released.

As for the iPhone 5C. I think in terms of demands. There was a report showing "unique" visits by iPhone 5S vs 5C users over the weekend of September 20th when they were both released. It revealed the 5S was shown to be the "unique website visit" at least 3 times more than the 5C.

And factor in many of us are still waiting for our iPhone 5S or had just picked it up after the weekend of September 20th. The 5S is probably outselling the 5C by a 5:1 margin at least.

http://www.forbes.com/sites/chuckjones/2013/09/27/iphone-5s-is-three-times-more-popular-than-the-5c/

I think most early adopters go for the 5S. That's why when Apple released the 9 million iphone 5C and 5S sold. Many people were skeptical how many 5C's were sitting in stores. You can get any color 5C at almost any retail store any hour of the day. The 5S are selling like hotcakes.

But give it a couple of months. It will even out especially in the USA where most cost conscious buyers will figure $99 is cheaper than $199.

Of note in the latest earnings report (I am both a Verizon and ATT shareholder so I follow both stocks closely). But the lastest earning report showed that more than 50% of all smartphones sold on Verizon last quarter were iPhones (iphone 5 was 9 months old at the time, and iphone 4s/4 were much older)

http://www.technobuffalo.com/2013/07/18/verizon-q2-earnings-iphones-sold/

It's getting late 1145PM east coast. But I am trying to find another article that states Verizon was activating 50% of older iphone 4s and iPhone 4s in that report also.

So USA consumers still value $99 or "free" iPhones on 2 year contract.
 

Blakjack

macrumors 68000
Jun 23, 2009
1,805
317
So unlike the last couple of years, Apple's last year phone won't sell well because this year they decided to make it colorful?!..............

I can't believe that. I'm curious to see the after Christmas numbers. I think kids, college students, and hipsters will love this thing. Especially the female gender.
 

Robster3

macrumors 68000
Original poster
Dec 13, 2012
1,987
0

Ok well that proves my point, the 5c was overpriced by Apple. Feel sorry for those that got caught in the hype.
They are a good phone at $599 Aud. But i would wait they will get cheaper.

Samsung's S3/4 etc, they flog them for $799 on release and within a few months there at $399.
Looks like the 5c is going the same way. It must be the plastic, Apple have more profit and can discount.
 

danilko1

macrumors 65816
Jun 21, 2010
1,087
366
sounds like the OP has buyer's remorse

It will do them no good to return their 5C and buy it again. It's not Apple's promotion. It's Best Buy, and a few copy cat stores, for the weekend. Then Walmart jumps in. They have the money to do this, they say it's for the whole season. Apple gave them special approval to give a $20 discount permanently, by saying it was all on them. However Apple saw this coming. They don't like these price drops because it screws the perceived value, and upsets prior customers.

Now there could be a backlash and Apple will have to give out $50 iTunes cards to keep people happy, when it's not their fault.

Actually if you see the promotions, the stores are selling the phone at normal price and give the buyer a gift card, which in turn they could use instantly on the purchase of the phone.

Technically this is not lowering the price of the phone, it's lowering the cost.
 

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
So unlike the last couple of years, Apple's last year phone won't sell well because this year they decided to make it colorful?!..............

I can't believe that. I'm curious to see the after Christmas numbers. I think kids, college students, and hipsters will love this thing. Especially the female gender.

And that was there mistake, thinking just because they made it colorful people would leave behind there already colorful windows and android devices. Umm no, just asked my teenage son if he wanted one and his response was does it come in black?
 

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
It will do them no good to return their 5C and buy it again. It's not Apple's promotion. It's Best Buy, and a few copy cat stores, for the weekend. Then Walmart jumps in. They have the money to do this, they say it's for the whole season. Apple gave them special approval to give a $20 discount permanently, by saying it was all on them. However Apple saw this coming. They don't like these price drops because it screws the perceived value, and upsets prior customers.

Now there could be a backlash and Apple will have to give out $50 iTunes cards to keep people happy, when it's not their fault.

Actually if you see the promotions, the stores are selling the phone at normal price and give the buyer a gift card, which in turn they could use instantly on the purchase of the phone.

Technically this is not lowering the price of the phone, it's lowering the cost.

The promotions are to move them. They probably ordered more stock than they needed, thinking it would be a big seller. Apple probably thought making it plastic would appeal to the people that think of it as a high end phone (not for kids). Making it plastic would appeal to younger people 7 and up, lol that's when they start nowadays. Yeah around Christmas sales may pick up due to people getting them for gifts (for there kids).
 

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
And furthermore, I can safely say that even around Christmas there will be ZERO promotions like these for the 5s.

Some people just can not believe that Apple is capable of making a mistake.
lol I can go on and on but I will leave this thread alone, sorry if I hijacked it. But when your sitting around waiting for, it looks like a month, for phones to ship, you have a lot of time to vent. Carry on people.:)
 

Col Ronson

macrumors 6502a
Aug 7, 2008
619
2
And furthermore, I can safely say that even around Christmas there will be ZERO promotions like these for the 5s.

Some people just can not believe that Apple is capable of making a mistake.
lol I can go on and on but I will leave this thread alone, sorry if I hijacked it. But when your sitting around waiting for, it looks like a month, for phones to ship, you have a lot of time to vent. Carry on people.:)

What mistake? Because you dont want an iPhone 5C, you assume nobody else wants an iPhone 5C? lol great logic.

------------------------------

There are promotions for the 5C because the 5C is aimed at the casual consumer. Of all the smartphones out there, the iPhone is arguably one of the most expensive. I know plenty of people who buy Androids or Nokias because they're cheaper, not because they're better than iPhones (which we all know they're not ;) ) but seriously...

Come christmas time/holiday season when people buy gifts for other people, the casual person will want a colorful and $99 phone (many stores here are doing $50 for the 5C)

The reason the 5S is doing so well right now is because the type of person who would buy a 5S is the same type of person who buys a phone the moment it is released. We only make up 20-30% of the iPhone user base. The market base the iPhone 5C is aimed towards generally doesn't buy phones on launch day or launch weekend. They'd buy it when their contracts run out, which can be anytime during the year...
 

KPOM

macrumors P6
Oct 23, 2010
18,028
7,868
Got a good laugh when you wrote "traditional $199 plus subsidy model" with the iPhone 3G. The $199 price wasn't traditional by any meals. It was a HUGE drop in "traditional" smartphone prices especially in the USA subsidy model. All of us techies all remember in the not too far past that "high end smartphones routinely sold for $349-399 on a 2 year contract. That including Treos and Blackberry.

Apple shocked the USA world by introducing the $199 contract pricing. That's why the current $199 pricing took off with the iphone 3G. Apple did their analysis and knew Americans had a hard time buying something over "2" as in 2 hundred. $199 sounded good for a smartphone.
.

$199 might have been a low contract price for a smartphone (though I thought BlackBerry had already embraced that model by then), but certainly the low upfront pricing plus subsidy was an established model for cell phones in general. Apple's biggest impact on the US market was to popularize the smartphone, which had become popular a few years earlier in Europe. Back in 2007 the US was viewed as a laggard in the mobile space. We we behind in 3G, overall cell phone penetration, and smartphone penetration. Now we lead the world in 4G, and both the top smartphone platforms in Android and iOS (and distant #3 Windows Phone, for that matter) are American.

But the $199 pricing plus subsidy goes back to the early days of the cell phone. I had a job in the mid-1990s at an electronics retailers back when bulky Star Trek-style flip-phones were all the rage. We sold the even bigger bricks for $1 (with the $300 subsidy from the carrier), and the "slim" flip phones for $150-250. I hated it when the customer with shaky credit came in and I had to explain to him that I could only sell the "$0.99" cent phone to him for $300.99 while the guy before him got the flip phone for $150. And activation in the 1G days was a pain (weird sequences of key presses, etc.).
 

KPOM

macrumors P6
Oct 23, 2010
18,028
7,868
The reason the 5S is doing so well right now is because the type of person who would buy a 5S is the same type of person who buys a phone the moment it is released. We only make up 20-30% of the iPhone user base. The market base the iPhone 5C is aimed towards generally doesn't buy phones on launch day or launch weekend. They'd buy it when their contracts run out, which can be anytime during the year...

I generally agree, but with the early price drops, I sense that, at minimum, the resellers expected greater sales of the 5c than what has materialized to date. For all we know, Tim Cook figured the 5c would be relatively slow out of the gate, but wasn't one to argue when the carriers, Wal-Marts, Best Buys, and RadioShacks of the world placed large orders for the 5c.

Apple has poured a lot of money into 5c advertising. I've seen tons of billboards and signs for the 5c. I think I have yet to see a single ad or billboard for the 5s. Yes, Apple knew the 5s would sell itself, but I think they want the 5c to do better than whatever the "last year's phones" did in prior years. It may yet do so, but Apple may still be trying to figure out the right pricing.

Also, don't underestimate the impact of the 4s. It has stuck around as the "free" phone this year. Some people not interested in paying $200 for the 5s may be opting for the 4s since they think it looks nicer than the 5c.
 
Last edited:

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
What mistake? Because you dont want an iPhone 5C, you assume nobody else wants an iPhone 5C? lol great logic.

------------------------------

There are promotions for the 5C because the 5C is aimed at the casual consumer. Of all the smartphones out there, the iPhone is arguably one of the most expensive. I know plenty of people who buy Androids or Nokias because they're cheaper, not because they're better than iPhones (which we all know they're not ;) ) but seriously...

Come christmas time/holiday season when people buy gifts for other people, the casual person will want a colorful and $99 phone (many stores here are doing $50 for the 5C)

The reason the 5S is doing so well right now is because the type of person who would buy a 5S is the same type of person who buys a phone the moment it is released. We only make up 20-30% of the iPhone user base. The market base the iPhone 5C is aimed towards generally doesn't buy phones on launch day or launch weekend. They'd buy it when their contracts run out, which can be anytime during the year...

It doesn't matter wither I personally like it or not, the mistake was making it the main focus of this years launch. Mass production, pre-sell should have been for the 5s and not the c Yes, I bought a 5s, but the last iPhone I bought and actually kept and used was a 3GS. I buy everything that comes out because I like to have an open mind to everything out there, and frankly I am just not wowed, impressed by anything, iPhone included. All of them have there strength's and weaknesses. Plus all the subsidized pricing is all pretty much the same for all phones in the usa so don't know where you get cheaper from? Higher full retail, yeah because Apple is greedy and can get away with it.
 
Last edited:

KPOM

macrumors P6
Oct 23, 2010
18,028
7,868
And furthermore, I can safely say that even around Christmas there will be ZERO promotions like these for the 5s.

Some people just can not believe that Apple is capable of making a mistake.
lol I can go on and on but I will leave this thread alone, sorry if I hijacked it. But when your sitting around waiting for, it looks like a month, for phones to ship, you have a lot of time to vent. Carry on people.:)

Let's not go overboard, though. I do think Apple made a mistake with the pricing of the 5c, but not a huge mistake. I wasn't expecting the 5c to be a dirt cheap $350 phone for China like the analysts. I was surprised that they kept the 4s around, though. I figured some version of the 5c would start at "free"/$450 and supplant both the 5 and the 4s as Apple's entry level and mark a shift back to a 2-phone strategy after 2 years of a 3-phone approach.

Heck, at $450, I might even get a 5c as a 2nd phone to go with a $30 T-Mobile 5GB data plan to replace my bulky My-Fi. But $550/$99 might have been a step too far, particularly when $650/$199 gets you the TouchID (which I like a lot), a better camera, a better processor, and a better design.

The 5c approach is a long-term play, though. If it turns out that it sells well at "$49"/$500 or even "free"/$450, then we'll see Apple adopt that approach next year when the "5CS" launches alongside the iPhone 6. Apple is breaking new ground to some extent with the 5c, so I can give them the benefit of the doubt while they figure out the right pricing plan so long as the 5s is still selling as fast or faster than Apple can get them to customers.

----------

It doesn't matter wither I personally like it or not, the mistake was making it the main focus of this years launch. Mass production, pre-sell should have been for the 5s and not the c Yes, I bought a 5s, but the last iPhone I bought and actually kept and used was a 3GS. I buy everything that comes out because I like to have an open mind to everything out there, and frankly I am just not wowed, impressed by anything, iPhone included. All of them have there strength's and weaknesses. Plus all the subsidized pricing is all pretty much the same for all phones in the usa so don't know where you get cheaper from? Higher full retail, yeah because Apple is greedy and can get away with it.


I suspect that the pre-sales and marketing focus on the 5c vs. the 5s were because Apple knew the 5s would sell faster than Apple could make them. The 5c was a "new" effort for Apple in that it was their first purpose-built mid-range phone. There was no sense wasting marketing dollars on a phone that will sell itself. Hence all the ads are for the 5c. If it's a flop, Apple will just go back to its old strategy, particularly if the 2014 iPhone 6 sports a bigger screen. If it works out in the end, then Apple has figured out a nice way to maintain margins while selling "last year's" technology.
 

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
Let's not go overboard, though. I do think Apple made a mistake with the pricing of the 5c, but not a huge mistake. I wasn't expecting the 5c to be a dirt cheap $350 phone for China like the analysts. I was surprised that they kept the 4s around, though. I figured some version of the 5c would start at "free"/$450 and supplant both the 5 and the 4s as Apple's entry level and mark a shift back to a 2-phone strategy after 2 years of a 3-phone approach.

Heck, at $450, I might even get a 5c as a 2nd phone to go with a $30 T-Mobile 5GB data plan to replace my bulky My-Fi. But $550/$99 might have been a step too far, particularly when $650/$199 gets you the TouchID (which I like a lot), a better camera, a better processor, and a better design.

The 5c approach is a long-term play, though. If it turns out that it sells well at "$49"/$500 or even "free"/$450, then we'll see Apple adopt that approach next year when the "5CS" launches alongside the iPhone 6. Apple is breaking new ground to some extent with the 5c, so I can give them the benefit of the doubt while they figure out the right pricing plan so long as the 5s is still selling as fast or faster than Apple can get them to customers.

I'm sorry guys, not trying to ruffle feathers, but I have been a member of this forum for years, but pretty silent, mainly because I get the impression by many people here that they feel just because Apple slaps there name on something, it will sell and somehow change the world. I just don't feel it, heck even my ipod ended up in the closet. So, I have tried to feel what you all feel.:(
 

KPOM

macrumors P6
Oct 23, 2010
18,028
7,868
And that was there mistake, thinking just because they made it colorful people would leave behind there already colorful windows and android devices. Umm no, just asked my teenage son if he wanted one and his response was does it come in black?

They may not have been targeting your teenage son as much as a teenage daughter or younger sister. The colors are all pastel except for the white and yellow versions. I've commented in the past that Apple's biggest weakness is that they have no people with XX chromosomes in the C-Suite. Andrea Jung on the Board helps a bit, but the board isn't involved in the day-to-day activities. I sense that at least in some respects iPhone 5c was an attempt to appeal to women that might not have panned out quite as Apple expected.

What does appeal to women is the gold iPhone 5s, which apparently caught Apple off guard since that model is a LOT harder to get than the silver or space gray models.

That said, I'm not too worried overall. If people are holding off waiting for the 5s to become plentiful, then Apple will eventually sell them something.

----------

I'm sorry guys, not trying to ruffle feathers, but I have been a member of this forum for years, but pretty silent, mainly because I get the impression by many people here that they feel just because Apple slaps there name on something, it will sell and somehow change the world. I just don't feel it, heck even my ipod ended up in the closet. So, I have tried to feel what you all feel.:(

No feathers ruffled here. As a shareholder, I want Apple to strike the right balance between price and margin with the 5c. But I'm not so defensive of Apple that I can't accept if they screwed up the initial pricing. I've said so on other threads myself. Heck, even Steve Jobs priced the original iPhone too high, and had a legitimate flop in the G4 Cube. Apple has lots of time to get the 5c right. 5s is selling like crazy and will make Apple a lot of money. Remember that the "boring" iPhone 4s wound up being a big seller.
 

dmystic1

macrumors regular
Nov 20, 2010
187
4
Hemet, CA
They may not have been targeting your teenage son as much as a teenage daughter or younger sister. The colors are all pastel except for the white and yellow versions. I've commented in the past that Apple's biggest weakness is that they have no people with XX chromosomes in the C-Suite. Andrea Jung on the Board helps a bit, but the board isn't involved in the day-to-day activities. I sense that at least in some respects iPhone 5c was an attempt to appeal to women that might not have panned out quite as Apple expected.

What does appeal to women is the gold iPhone 5s, which apparently caught Apple off guard since that model is a LOT harder to get than the silver or space gray models.

That said, I'm not too worried overall. If people are holding off waiting for the 5s to become plentiful, then Apple will eventually sell them something.

----------



No feathers ruffled here. As a shareholder, I want Apple to strike the right balance between price and margin with the 5c. But I'm not so defensive of Apple that I can't accept if they screwed up the initial pricing. I've said so on other threads myself. Heck, even Steve Jobs priced the original iPhone too high, and had a legitimate flop in the G4 Cube. Apple has lots of time to get the 5c right. 5s is selling like crazy and will make Apple a lot of money. Remember that the "boring" iPhone 4s wound up being a big seller.

The gold 5s is appealing to more than just woman. I bought two just because it was different than just black "space grey" or silver. But gave up on one because AT&T canceled the order and by then it was not even worth the November wait they are projecting now. So, I elected silver and am still waiting for both. If nothing ships by next week (3 weeks), I won't be waiting for either.
 

burgman

macrumors 68030
Sep 24, 2013
2,716
2,292
Apple surprised at Gold being popular? I guess if one ignores articles in July and August on the inventory constraints, then yeah Apple was blindsided ;)
 

Blakjack

macrumors 68000
Jun 23, 2009
1,805
317
And that was there mistake, thinking just because they made it colorful people would leave behind there already colorful windows and android devices. Umm no, just asked my teenage son if he wanted one and his response was does it come in black?

I had the same reaction as your son. Just don't know if it's enough for it to not sell well.
 

asleep

macrumors 68040
Sep 26, 2007
3,686
1,574

neoelectronaut

Cancelled
Dec 3, 2003
3,417
2,093
Why are so many internet denizens anxious to call the iPhone 5c a failure? I don't think I've ever seen Apple fans actively petition an Apple product to fail.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,134
31,183
Same in the UK. Seems sales have been slow as most have went for the 5S.

This phone won't sell until it's a lot cheaper.

What are you basing this on? Do you have any hard sales figures.

----------

Why are so many internet denizens anxious to call the iPhone 5c a failure? I don't think I've ever seen Apple fans actively petition an Apple product to fail.

I don't get it. Did the want the 3G and 3GS to fail too? Or were those plastic products ok because Steve Jobs announced them?
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.