iPhone 5s Outsells iPhone 5c by ~3.5x in Launch Weekend According to Analytics Data

[AidenShaw]

Couldn't have said it better myself. In fact, I was surprised to read these sorts of comments on this article. The way I read the article, it was a positive thing! This means that apple sold at least 2.5 million iPhone 5c's during it's opening weekend, which really isn't that bad of a number - forget about comparing it to the 5s for 2 reasons -

We don't know how many 5S or 5C were sold - Apple didn't break it out by model.

We also know that the "9 million" figure includes unsold stock sitting on carriers' shelves and other stores (Radio Shack, Walmart, Best Buy,...).

The "outsells by 3.5x" means nothing without all of the numbers.

If the supply constraint meant that only 1 million of the 5S were shipped, and (best case) all of those were sold to end-users - that means that Apple might have actually delivered fewer than 300,000 5Cs to end-users.

Statistics can be fun when the numbers aren't defined.

 

[KohPhiPhi]

I'm not surprised. Why getting a gimped version for $599, when you can get the full aluminum thing for $699?

 

[macs4nw]

This is really to be expected. Who is going to clamour to get their hands on a phone that has essentially been out for a year?

Exactly why I too am springing for a 5S; I've played with the 5C in the Apple store, and love the form factor, but can't get myself to forego all the 5S has to offer. But the 5C is an awesome little phone for those not needing or wanting the latest tech, or those upgrading from a 4 or 4S, who'd rather go for the lower-priced upgrade option.

 

[AidenShaw]

Apple isn't sony: the numbers are phones actually sold.

By Apple's definition, "sold" includes "shipped to Best Buy and AT&T". It does not mean delivered to end-users.

So why is it okay that companies report units shipped as units sold? It all comes down to accounting.

Companies need to determine inventory and cost of good sold figures in order to calculate earnings. Sounds simple enough. Diving deeper into purchasing contracts would show the more intricate interactions between a buyer and seller. Without jumping into the accounting bunny hole, let’s look at Apple’s most recent 10-K:

(Apple) recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of (Apple)’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, (Apple) defers revenue until the customer receives the product because (Apple) legally retains a portion of the risk of loss on these sales during transit.​

An iPad on a freight plane headed to a Walmart warehouse is no longer counted as an iPad in Apple’s inventory, instead it is counted as an iPad in Walmart’s inventory. Apple is able to recognize that iPad as sold and recognize the accompanying revenue (and profit).

- Business Insider, Mar 2011

originally posted by kdarling

 

[androvboy]

When the guy comes round your house to sell double glazing he doesn't say:
"Can I make an appointment next week?",
he says:
"Would you prefer an appointment Tuesday or Thursday?"

It's a classic marketing trick. We have already agreed that the average punter is too thick to understand the total price of ownership in a 2 year phone contract.

In this case Apple probably couldn't care if they had sold a dozen iPhone 5C's at the weekend. It has fulfilled it's purpose by confusing the great unwashed. The two products are visually and specwise quite different so the punter is currently thinking:

"Hmmmm, do I need that fingerprint thingie, or do I need a funky pink one?"

and avoids him thinking the more obvious:

"WTF!!! How much for a phone? Do you think I am quite mad?"

That all said I personally think the #1 difference is the fingerprint reader. I lock my phone and it's a pain in the arse. The first 5S users are already saying that using a 4 pin unlock is now seeming quaintly old-fashioned........and that the new system works fast and perfectly every time.

p.s. I also think Apple are just being chancers at the moment. The 5C will magically start appearing from the networks with crazy cheaper deals over the next 12 months as Apple juggle to find a sweetspot on pricing. The *official* price will stay the same, but there will be loads of hidden deals and incentives.

 

[sinfonye]

Looking back

In 2010, Apple sold 1.7M of the iPhone 4 in the first weekend. Sounds like they've done OK with the 5c

 

[Nickerbocker]

The 5C just really doesn't make for a logical buy IMO unless you really just want a particular color it has (which is a fine reason). At $550 for the 5C and $650 for the 5S, the 5S is the clear winner. 15% difference in cost, but with a much much larger difference in specs.

----------

In 2010, Apple sold 1.7M of the iPhone 4 in the first weekend. Sounds like they've done OK with the 5c

Keep in mind that was to an AT&T only customer base.

 

[xofruitcake]

You make a claim that's contrary to what Apple has done for years and expect other people to try and do the work for you? You made the claim, you back it up.

ha ha, and you make a claim that Apple has done it for years. What is your proof?.. I quote you these two sections from last q conference call. One from Oppeinheimer and one from Cook. Explain to all of us what is those Channel inventory and channel in and sale through reference mean if Apple account for everyone sale only when it is ship to customer and not to the carrier or retail store. In theory, if they count as sales only unit shipped to end user, what is in the inventory channel has nothing to do with their sales number. But it does. What is the point of Oppeinheimer and Tim cook explaining the unit sales decline in term of change in inventory? and why would analyst want to figure it out? According to your theory, all these discussion are moot..

http://seekingalpha.com/article/156...-2013-results-earnings-call-transcript?page=1

Peter Oppenheimer
Thank you, Nancy. We are pleased to report the results of our third fiscal quarter. We established a new June quarter record for iPhone sales driving Apple’s strongest June quarter revenue ever.
Revenue for the quarter was $35.3 billion, up $300 million or 1% from the year ago quarter, and at the high end of our guidance range. Gross margin was 36.9% also at the high end of our guidance range, and operating margin was $9.2 billion representing 26% of revenue. Net income was $6.9 billion translating to the diluted earnings per share of $7.47. Channel inventories declined sequentially by $1 billion during the June quarter this year meaning that sell-through was $36.3 billion. In contrast, channel inventory increased $700 million from the beginning to the end of the June quarter last year meaning that sell-through was $34.3 billion in that quarter. As such, our June quarter sell-through increased by $2 billion, or 6% year-over-year ahead of our 1% [selling and] [ph] revenue growth.

http://seekingalpha.com/article/156...arnings-call-transcript?page=5&p=qanda&l=last

Tim Cook
For us if you look year-over-year. We had 2.4 million unit decline but 80% of that or 1.9 million units were just due to changes in channel inventory. As I think Peter referenced earlier, we reduced by over 700 in the current quarter and the year ago quarter had an increase of 1.2 and so the underlying sell through declined by just 3%. If you look at the situation that we’re in in the year ago quarter we had just announced the third-generation iPad which was our first iPad with a retina display. We had announced in March and so that was our first full quarter and so from what Peter and I expected 90 days ago we hit within the midpoint of the range that we expected to hit on iPad unit sales and so it was not a surprise to us.

And explain what Gene Muster said here about the first day sales:

http://appleinsider.com/articles/13...-apples-iphone-5s-and-5c-launch-weekend-sales

arget: $640.00
Rating: Overweight

"We had been expecting 5-6 million units as sell-through and note that the 9 million unit weekend number includes sell-in of the 5C. Our adjustment for the sell-in implies opening weekend sell-through of around 5.5 million units. We believe the 5.5 million sell-through number compares to the 5 million iPhone 5 units sold last year (Apple sold out of initial stock) and view the 5S/5C launch as a solid start. We note that iPhone 5S demand throughout opening weekend appeared to be stronger than iPhone 5 demand last year."

 

[thill]

The 5C just really doesn't make for a logical buy IMO unless you really just want a particular color it has (which is a fine reason). At $550 for the 5C and $650 for the 5S, the 5S is the clear winner. 15% difference in cost, but with a much much larger difference in specs.

----------



Keep in mind that was to an AT&T only customer base.

Because there are millions upon millions of people out there that don't care about specs and would rather pick the $99 option and save $100 bucks.

And the colors will attract teenage girls and women. We are seeing the majority of sales skewing towards the 5S, but you are also dealing with the early adopter, tech geeks right now.

 

[Nahaz]

And Apple would make little-no margin on the phone... Unless they downgraded the phone internals

They would still make profit at that price.

Gizmodo did a breakdown of the iPhone 5 and it costs $207 for the parts and manufacturing cost. See here: http://gizmodo.com/5944446/the-iphone-5-costs-8-more-to-build-than-it-does-to-buy

Apple knows they are making a killing on the current price, and while people are buying it they have no intention to lower that margin.

 

[TimCook]

Hopefully Apple realises that they priced the iPhone 5C too high and we actually get the low-cost iPhone we all wanted.

Exactly!

I have so many friends who were hoping the 5C would be affordable enough that they could get one, but instead they have all had to stay with Android because Apple decided to completely ignore the budget sector of smartphones.. Apple could take so much more market share by producing something to fill that price gap, I just hope they actually do it sometime!

 

[inscrewtable]

No, evidence that the 5C is not cheap enough.

No, evidence that the 5S is not dear enough

 

[scottsjack]

Because there are millions upon millions of people out there that don't care about specs and would rather pick the $99 option and save $100 bucks.

And the colors will attract teenage girls and women. We are seeing the majority of sales skewing towards the 5S, but you are also dealing with the early adopter, tech geeks right now.

Two specs that are important to me are the feel of the case and the width of the screen. I much prefer the 5c case in my hand.

iPhone screens are way too skinny. I was originally going to get a 64GB 5s but I am not going to pay a premium for such a small screen even though it has more performance.

Because of that I bought a 32GB iPhone 5c. I will look in six month or so to see if Windows Phone has got its act together or if the iPhone rumor mill is predicting a useful width.

Other than iOS 7's ugly flat look I really like the 5c. It was well worth $200 and another contract.

 

[JPBoram]

outsell and over-priced-sell

Ok, have you guys seen on eBay? a iPhone 5S just sold for $10,100 - http://VaultFeed.com/gold-apple-iphone-5s-sells-for-1200-10000-on-ebay/ - People are SO dumb. I bring this up to make a point.

Every time Apple releases a new iPhone eBay sees massive prices for sold-out devices.

My question is why in the heck do people want to pay that much for something that can be easily purchased in another month after the "rush" and "craze."

I dont understand this insanity?

 

[MisterPunchy]

Exactly!

I have so many friends who were hoping the 5C would be affordable enough that they could get one, but instead they have all had to stay with Android because Apple decided to completely ignore the budget sector of smartphones.. Apple could take so much more market share by producing something to fill that price gap, I just hope they actually do it sometime!

lol... you just don't get it, do ya? Maybe when Tim retires he'll explain it all. Then again, he probably won't have to.....

 

[rawlsfwqq]

Testing for stability is definitely required.

 

[thefourthpope]

I got one of those C's. I'm not surprised the S has sold better initially--for all the reasons stated in the post. But I also believe the C is the best looking and feeling phone I've ever owned. I hope Apple keeps this design into the future.

 

[kalsta]

No, evidence that the 5C is not cheap enough.

Spot on. It was the same reason a much earlier Apple product failed. I'm sure you'll remember that one with a username like that.

Not saying the 5C is a fail, but for the educated shopper, the 5S is a no-brainer when you compare features, performance and price (in my humble opinion).

 

[iSayuSay]

LOL Like I said a couple of times before.

I want to see 5C failing on the market

It is an irrelevant product. Not cheap enough to warrant $549 price tag, not expensive enough to be on the high end market. It is last year's model for fark sake.

Everybody wants 5S just because you get so much more for only $100 difference.

 

[rtdunham]

LOL Like I said a couple of times before.

I want to see 5C failing on the market

It is an irrelevant product. Not cheap enough to warrant $549 price tag, not expensive enough to be on the high end market. It is last year's model for fark sake.

Everybody wants 5S just because you get so much more for only $100 difference.

1) the number of times you've said it before lends no validity to your argument
2) irrelevant to whom? the marketplace, not you, will determine whether enough people will pay $549 for it.
3) every year the company's sold last year's model for $100 less than the new one, on contract. what's your point?
4) on contract, the diff in price is $99 and $199 for the smallest capacity. That's a 50% diff in many people's minds, contract costs notwithstanding: it's not how you, or I think about it, it's how x-millions of customers think about it.
5) I don't know which model will sell better, or how well each will sell. I have opinions, but I'll not express them as fact, 'cause that would just be...well, you know...

 

[Rootus]

That's a 50% diff in many people's minds, contract costs notwithstanding: it's not how you, or I think about it, it's how x-millions of customers think about it.

And it's great for business. PT Barnum may not have ever said it, but it is very true nonetheless. There's a sucker born every minute. is all the way to the bank.

 

[iSayuSay]

1) the number of times you've said it before lends no validity to your argument
2) irrelevant to whom? the marketplace, not you, will determine whether enough people will pay $549 for it.
3) every year the company's sold last year's model for $100 less than the new one, on contract. what's your point?
4) on contract, the diff in price is $99 and $199 for the smallest capacity. That's a 50% diff in many people's minds, contract costs notwithstanding: it's not how you, or I think about it, it's how x-millions of customers think about it.
5) I don't know which model will sell better, or how well each will sell. I have opinions, but I'll not express them as fact, 'cause that would just be...well, you know...

1. So you're complaining about I complain quite a few times about 5C? And did that bring anything into a discussion?
2. One mere mortal like me don't want to spend $549 for a plastic iPhone. Say one million more human think the same and you get the butterfly effect. Like presidential vote, each vote matters, you know?
3. Yes. Started from 3GS, Apple sell last year's iPhone for $100 less. But you know, 3GS - 4 - 4S was offered as an exact same model when the next gen iPhone launched, same premium quality, same design. It wasn't being cheapen out or put into plastic enclosure and market it as a "new phone".
4. In contrary, total contract cost matters. You'll spend closer to $2000 by the end of it. So when you say you paid $100 less for an inferior phone, you save like 5%. Upfront fee is minuscule compared to that. So why not getting the best phone while you're at it?
5. And in what way you assume my opinion as a fact? My post was an opinion but I think it's close enough with the projection that 5S outsell 5C by 3 to 1.

 

[Technarchy]

LOL Like I said a couple of times before.

I want to see 5C failing on the market

It is an irrelevant product. Not cheap enough to warrant $549 price tag, not expensive enough to be on the high end market. It is last year's model for fark sake.

Everybody wants 5S just because you get so much more for only $100 difference.

How is it any different than Apple simply recycling the iPhone 5 and selling it as an entry level model for the same price?

I'd rather have the color options and the new chassis design.

 

[iSayuSay]

How is it any different than Apple simply recycling the iPhone 5 and selling it as an entry level model for the same price?

I'd rather have the color options and the new chassis design.

It is different because I would get the same Aluminum design I like for $100 less that way.
Same phone, same design but cheaper. Then yes it IS cheaper.

Have Apple ever change the design when 3GS, 4 and 4S sold as "cheaper options" in conjunction with the newest iPhone at the time?

So if I were Tim Cook what would I do?

Sell the 5S as it is
Sell the 5 as it was. Keep the design and internal. It would costs $100 less than 5S
Throw 4S out of the line, put the internal into 5C design as it is today with 16GB option only, sell it for $0 on contract, or $399 to buy outright.

That way I can kill 30 pin dock off the way, accelerating my transition all-Lightning port iPhones. Strategic thinking!

 

[Technarchy]

It is different because I would get the same Aluminum design I like for $100 less that way.
Same phone, same design but cheaper. Then yes it IS cheaper.

Have Apple ever change the design when 3GS, 4 and 4S sold as "cheaper options" in conjunction with the newest iPhone at the time?

So buy an iPhone 5 and call it a day. There are plenty out there. Just because Apple no longer sells to option "you like" is no reason to get butt hurt.

The 5C is an improvement over the iPhone 5.