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iPhone 5s Outsells iPhone 5c by ~3.5x in Launch Weekend According to Analytics Data
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You hit it on the head. There are 2 main reasons Apple didn't make a cheaper iPhone - quality and profit margins. Apple has always had large profit margins. There are only two ways to maintain them - keep prices high or reduce cost of components. Putting in cheaper components and making the phones out of cheaper materials (a la Samsung and most other Android-based phones) results in decreased user experience and customer satisfaction. That's not something Apple is willing to do (thankfully). The iPhone 5s is the premium end of the high end market. The iPhone 5c is solidly in the high end market. Apple wasn't even willing to go high and mid-end with new products - both had to be high end.
The other thing Apple could do is simply reduce margins. Samsung is around 12-13% (Apple is typically more than double that). Other tech companies involved the phone business tend to have much lower margins (HTC < 5%; LG < 5%). That and cheaper materials result in cheaper off-contract phones. Some manufacturers are even willing to sell their phones at or below cost (e.g., LG/Google with the Nexus 4).
LOL. Brilliant. Sell three times as many 5S phones, but build only a third as many as the 5C. I know hindsight is 20/20, but I don't think it took an analytical genius to see, with that minuscule price difference, that the 5S was going to outsell the 5C. Just about everyone, including on these forums, predicted exactly this.
Apple wasted so much time and resources building the 5C when they could have built an even better 5S - and had more of them. Apple usually knows their customers well, but not this time - they blew it big time.
Yes, I know they sold a ton of phones and its hardly "blowing it". But they also left a lot of sales on the table from people who decided to go for it, but can't find one now. Maybe they will buy when they become available again, maybe not. But, in sales, a bird in the hand is worth two (or in this case, 3 times) in the bush.
Apple wasted so much time and resources building the 5C when they could have built an even better 5S - and had more of them. Apple usually knows their customers well, but not this time - they blew it big time.
Yes, I know they sold a ton of phones and its hardly "blowing it". But they also left a lot of sales on the table from people who decided to go for it, but can't find one now. Maybe they will buy when they become available again, maybe not. But, in sales, a bird in the hand is worth two (or in this case, 3 times) in the bush.
I want to be an analyst aswell. My guesstimate is that the 5S only outsold the 5C 1,5 times, due to supply chain contraints.
Id like my check now.
Id like my check now.
I don't think so. People don't stand in line to get the latest low-end device. The 5C's primary audience probably wasn't even aware that a new iPhone was released last week.
Why would Apple want to sell you a 5C when you are buying a 5S?
Edit - Or more appropriately, why should Apple care whether you are buying a 5S or 5C?
I agree, the 5c was made for holidays (expensive presents) and users strolling into the Apple store and not caring about the internals but loving those colors...not for taking the day off to stand in line to be the person who has the latest iPhone (5s).
This looks good. I'd expect the numbers to start to reverse after a month or so (when the initial mass of want to have the latest folks have been satisfied).
Actually, customer satisfaction and profit margins are what's important. Nokia and RIM had a large market share just 3 or 4 years ago. What did that buy them?
I like how you think you are qualified to assess the tastes and preferences of "most" people.
Hmmm. I wonder why the iphone 5s is outselling the 5c nearly 4 to 1. Um....could it be because the 5c costs practically as much as the 5s yet doesn't have many of its features?
The 5c is not exactly the cheap iphone people were expecting. I think when it was announced, a lot of people just compared it to the 5S... and figured since they were so close in price, they might as go with the 5S since it had more features.
The 5c is not exactly the cheap iphone people were expecting. I think when it was announced, a lot of people just compared it to the 5S... and figured since they were so close in price, they might as go with the 5S since it had more features.
I suppose Apple wouldn't care if the more expensive phone cannibalizes sales of the cheaper one 
That's probably true, especially for those buyers waiting in line on release day. However, the rest will probably just buy whatever makes the most sense at the time they decide to replace their current phone.
My guess is that there is plenty of margin for walmart and target to discount the 5c (even more) for the upcoming holidays, adding to both Apple's bottom line and market share. No reason to do that yet, as there's a vast amount of profit to be made selling 5s models without distractions.
nah ... feature/price 5s is better choice for people with brain. if apple priced 5c properly / reasonably then it will sell like hot cakes b/w 399$ -499$
I was about to tell you that margins are not similiar, but I did the math and margins are about the same. The profit per phone is clearly higher for the 5S, but not the margins.
Here's the math.
iPhone 5 build cost: $235
iPhone 5 sale price: $650
iPhone 5 profit: $415
iPhone 5 margin: 175%
iPhone 5C build cost: $200
iPhone 5C sale price: $550
iPhone 5C profit: $350
iPhone 5C margin: 175%
So I still think that Apple would rather you buy a iPhone 5S over an iPhone 5C because they make more profit, but at least they maintain their margin on the sale.
BTW, iPhone 5S build cost estimates are not out yet, but its a pretty safe bet that they will be in line with the 5, at around $235. The $200 5C build cost is my somewhat aggressive estimate. The 5 had $35 allocated for mechanicals, and that number might come down $25 from the use of plastic. Another $10 elsewhere seems reasonable. Really I picked the number because it makes the margins the same and seems reasonable.
Apple once had a small market share with high profit margins.
Not really good times for Apple.
Again, doubtful as $399-$499 phone would have had to have been downgraded further (lower storage, worse camera, slower chip, etc)
At least for this iteration, the phone had to actually be able to perform well, particularly with iOS7.
Few anecdotal reasons from chatting with people this weekend:
- You can get a 32GB 5C for the 16GB 5S price. Storage is premium with Apple.
- Colors (as you state)
- It is $100 cheaper. Many may not consider this "big enough" but its there.
I just went on Verizon's website and their plan pricing is the same whether you do a two year contract or month to month (unlocked). So a lot of people would consider it "free" since the monthly plan fee is the same whether you pay $199 up front or $649. And I would guess the non techie average consumer isn't obsessed with having a new phone every year so the two year contract requirement isn't a big deal to them.
nah just cut the huge profit margins. really with 100$ difference it dosen't make any sense .. just color & plastic with so many advance features missing
Surprising how many 5C being sold.
Past older models (I consider 5C the old 5 in new skin) I think was less then 10% of sales.
Past older models (I consider 5C the old 5 in new skin) I think was less then 10% of sales.
Same here. Went to the NYC Apple store which was a zoo.
Holding a 5C confirmed what other reviews mentioned:
This is a solid feeling phone in your hand and plastic doesn't come to mind!
Now, the colors chosen is a different animal. Maybe I am too old for pale candy colors. Their hues are so off and washed out.
But then I am not the target group, so 5S is it for me!
As usual, I will wait until the first consumer reports are in about scratching and other issues and until there is plenty of supply.
