Sales Gap Between iPhone 5s and 5c Narrowing Over Time

[Locoboof]

For some 199.99 is a lot of money. So the 49.99 for a 5C at Walmart is very very appealing to a lot of people. I myself have the 5S,but my niece who's 14 and all of her friends love the 5C. They like the colors,plus for my sister the price is appealing for her daughter. With the teens (that I've seen) the 5C is extremely popular.

 

[stevensocal]

5C verses 5S

I love apple , so this isn't a hater saying this , but they missed the boat this year. First of all I am an at&t RSC..So I know what the pubic wants. They didn't want 5 colors of plastic lower model, than the 5s..
What I think apple should of done , usually they would of done this if they had smart marketing people and kept a close on on what the market was doing , this would of been a success.
They should of a made a 5s and a 5L ... Yes L stands for Larger screen.. Never made the 5c , since there's been very low demand for the 5C. 5L would of had a 5 inch screen and apple could of charged 50-100 more than 5s and made what most customers that need bigger screens very happy.. making a lower model in plastic wasn't smart. It cheapen's there product and apple brand. They should of kept as they did 4S for the lower income customers to buy at 99cents... HTC, Samsung and LG are all doing larger screens and customers are moving away from the iphone due to demand of larger screens and apple isn't seeing that, perhaps next year ...The reduction of production at 35% of 5c proves that apple made a mistake. They should again , listen to demands of the customers and I as a Retail Sales Consutant for at&a hear it everyday. I want to have a bigger screen, I want the NOTE, HTC ONE, MEGA etc. Step up to the Plate apple , you will loose market to other companies that want the bigger screens.

 

[IJ Reilly]

So I know what the pubic wants.

So do I, but I'm not in such a hurry to admit it.

 

[nagromme]

Remember that high-end buyers are more likely to be motivated to upgrade ASAP rather than "get around to it soon." They're even more likely (vs. mid-range buyers) to break their contract in order to upgrade early. I'd always expect an initial surge on the high end, now that the iPhone line is split the way it is.

 

[lunarworks]

The people who rush out to buy a new iPhone on release are going to get the latest and greatest, which was the 5S.

The 5C is meant for people renewing contracts and stuff.

 

[paul4339]

The 5C will do well, especially when the next gen comes out (assuming that they'll keep selling the n-1 gen).

I forget if it was the iPod mini or nano - when it first came out there was similar concerns of how well it would sell... the complaints was that even though it was a different form factor it was under-capacity (1GB?) and too expensive ... only about $50 cheaper than the iPod. I believe, the reason why it came out was to provide model diversity (many colors instead of just white like the iPod) and easy to manufacture and change colors. The product eventually exceeded the iPod in sales. And strangely, the colors that was initially released was very similar to the 5C.
Finally, I noticed that it allowed Apple to stagger the release of their iPod lines for the first couple of years.

.

 

[Rocketman]

The real advantage to 5C is the compatibility with various models with Chinese cellular companies and smaller ROW country networks. The plastic has better reception than the 5S. The phone is slightly less money and quite a bit more functional in the overall scheme of things.

The folks who want shiny deserve it. The folks who need basic "super smart phone" access will be 5C adopters.

Rocketman

 

[Gasu E.]

I guess you missed all the Apple is doomed spin last week because the 5C production was apparently cut.

Also, the fact that the phones are available in more locations has no bearing on the sales gap closing. If you're implying that emerging markets are impacting it, notice how the gap is wider outside the US.

To anyone who has ever managed a volume product, this is obvious-- it is normal for production to get cut from the initial level. It is necessary to have a large initial order to fill the channel pipeline, so that retailers have enough stock on hand to fulfill walk-in sales. Once that happens, production would be cut to mirror actual end-user demand.

 

[Breaking Good]

I still find it odd that the 5c isn't offered in a grey or black color. Like the rest of you guys, I understand the math on how little the true upgrade cost really is from 5c to 5s (when averaged out over a two year contract) - but if I was in the market for a 5c, I would want something a little less ... effeminate.

No offense to the real men who bought a pink one. Just saying.

Wait until February. I'm sure we will see "new" colors released in February.

This is a common strategy of the Android phone manufacturers. Release a few basic colors at launch. Then, in a few month (or weeks), release carrier specific colors.

AT&T will probably get black. Verizon will probably get dark blue. Sprint will probably get garnet red.

 

[bbeagle]

Eventually, in 3 years time, when new phones come out and old lines are discontinued, the sales of both the iPhone 5s and iPhone 5c will plummet to 0.

So, yes, the gap WILL narrow, guaranteed.

 

[nutmac]

Seeing 5c in person can change any negative perception one may have about plastic. I personally would prefer to see a white front face, but that aside, I actually prefer aesthetics of 5c over 5s. Anyway, since I always crave latest and greatest, I probably would always get non c model, but I was surprisingly impressed with 5c.

 

[jayducharme]

So the 49.99 for a 5C at Walmart is very very appealing to a lot of people.

I'm wondering if the gap has narrowed because of the recent price cuts at Walmart and Target. $50 for a new iPhone (even a plastic one) could be appealing to a lot of people.

 

[Doomtomb]

Easy
1: first adopters are power users=iPhone 5S
2: supply of 5S dried up

 

[JHankwitz]

"seeing about 3.5 times as many iPhone 5s units showing up as iPhone 5c units".

What does this mean? Showing up where? Showing up at their website?

It's been a known fact that people that have the resources to purchase higher priced phones also have more resources surf the web to shop on-line.

 

[crackbookpro]

Product Differentiation is a WIN WIN 4 Apple

The iPhone 5c has created product differentiation in the iPhone lineup... and perceived value evermore for the 5s now and the whole iPhone line up altogether in just a matter of time.

This helps the 5s initially, and helps the 5c create its own market in due time. And, I do predict these C's will be flying off the shelves around the world by the "6c" update debuts. Or, especially, when the 'C' gets biometric scanning(Touch ID) and now the low-end product isn't so "low-end". Give the 'C' 18 to 24months to capitalize its market...

When the iPhone 5c has found its true customer base, I'd say within a year to 18months(or right after the next update) maybe less, the 5c & 5s will be selling strong, and Apple's brand will be more global because of the marketing stance they are taking now with the 2 models.

Ultimately, the 5c is one of the smartest moves by Apple in a very long time... just give it 2yrs and both models will top their given/respective true market opportunity. And, when the Touch ID debuts in the next iPhone 'c', suddenly... this low to midrange smartphone is now perceived not so low or midrange.

So, Apple has more room for marketing strategy for both the 5c & 5s(the whole iPhone lineup), and Apple 3rd party co's win, but we/consumers may lose on certain updates intrinsically(not as good specs) even though now, due to product differentiation - we, the consumer, will never get the feeling we lose... we just have another option, and the cheaper option, may one day be a good option or cost-effective option nonetheless.

One day, I could see myself going to the 'C' over the 'S' just to be a smart cost-effective Apple shopper... even though most Apple customers, want the "best", the 'C' will still be the "new"... and the 'C' will stand for Cost-Effective not colorful from a marketing perception.

Give it time... Apple wins big here, and has started a huge game with Biometric scanning that they will win as well, and just started to pioneer. The leather wallet & D&G purse will go bye byes, and Touch ID will be a very secure authorized payment accepted online or any brick & mortar store across the world.

 

[JimmyY]

You might want to consider other factors before basing this ratio. Sells always relaxes after the initial release. 5S is very limited at the moment in stores. So, this does not always mean 5C is picking up sales. Maybe 5S just isnt available to sale to make up for it.

 

[bpcookson]

Now something completely different...

Many years ago, when iMacs were offered in six different colours, dealers would see which ones sold the least and offered them like £10 cheaper - just so that people who didn't care about the colour would pick them. Does anyone see that happening with the iPhone 5c?

I'd bet on it. The only thing going against it is already-steep cuts by the likes of Walmart or whoever is selling them at $50, but I suspect those deals will disappear and then we'll see just what you have described. This will happen at Amazon before it happens anywhere else.

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I love apple , so this isn't a hater saying this , but BLAH BLAH BLAH Step up to the Plate apple , you will loose market to other companies that want the bigger screens.

I hear pundits are preaching to impeach Tim Cook. Are you available for the position? I'm sure you'd be a shoe-in.

 

[Digital Dude]

I opted for the 5S under the 'just because' rule of logic. Besides, I downloaded iOS 7 onto my 4S and my battery cycles dropped by about 30%. The screen was already browning out in a couple areas probably due to sitting on it so I said what the heck.

Now that I've had it for 3-4 weeks it's almost like I never left the 4S. The new 7.0.2 update seems to have leveled the performance to being nearly identical to what it was when I was running version 6.x on the 4S.

I also decided to go for the 'NEXT' program with AT&T whereby I'm essentially leasing the phone and though I'm paying more, I can simply traded in at 12 month intervals so I can remain current. This is not the way to save money but does allow you to stay current as the newer models are released.

 

[simonmet]

To anyone who has ever managed a volume product, this is obvious-- it is normal for production to get cut from the initial level. It is necessary to have a large initial order to fill the channel pipeline, so that retailers have enough stock on hand to fulfill walk-in sales. Once that happens, production would be cut to mirror actual end-user demand.

So why did the complete opposite happen for the 5s?

Like most people I'm only going on the vague metrics and rumours as everybody else but it's clear that a big part of Apple's hype-based marketing strategy is to boast about launch stock sell outs. This is routinely followed by the "we just couldn't make enough to satisfy demand" mantra that is so predictable it's getting a little passé.

The fact this didn't happen for a new iPhone, that retailers here in Australia said demand for the 5c was very weak with stock readily available and rumours of cuts to orders for the 5c and significant increases for the 5s suggests Apple didn't play their cards right and got too greedy on the 5c's pricing. We've already seen price cuts for the 5c as a result, but not the 5s and these price cuts could also be contributing to the increasing 5c/5s ratio observed.

 

[BC2009]

This is what I thought might happen. The 5c was never going to be a blockbuster line, it is just going to find a set level and consistently sell.

I don't know how many times I have said this, but the purpose of the iPhone 5c is to outsell the 16GB iPhone 4S from last year. The 16GB iPhone 4S was far less attractive to somebody switching platforms than the iPhone 5c is. The iPhone 5s needed to outsell the iPhone 5 from last year. If you can improve sales on both the top-of-the-line and the mid-tier iPhone then Apple wins.

Keep in mind that the iPhone 4S was the #2 selling smartphone worldwide until the release of the GS4, which beat it during its launch month. It did that even though retailers were not allowed to advertise the iPhone 4S over the iPhone 5 and Apple did not advertise it either. There was zero marketing on the 16GB iPhone 4S last year. Compare that with the marketing around iPhone 5c. The iPhone 5c should have no problem outperforming the 16GB iPhone 4S from last year since it will drive more converts and people will be far more aware of it because of marketing.

 

[rish]

Anyone who thought the 5C was for early adopters clearly does not understand the point of an early adopter.

Anyone who thought the 5C would be less than the $199 price point has no idea at all the type of products Apple makes aren't cheap.

Anyone who thought that Apple oversupplied on the 5C completely forgot those who don't fall into the early adopter category.

Anyone who ran with the analysts doom and gloom clearly didn't have a clue about Apples market strategy.

That said. Looking forward to tomorrow.

 

[Aylwin]

Why not 5C this year vs 4S last year?

I'm STILL waiting for someone to do a comparison of 5C sales vs that of the 4S last year. To me, that would be more interesting to see.

Apple has been selling last year's model at a 100$ discount. The only difference this year is that instead of selling last year's iPhone 5, it's a modified version called the 5C.

In my opinion, comparing the 5C sales with last year's 4S would be a better indication of whether the 5C is a success or not. If the 5C is selling significantly better than last year's 4S then it's a success. If not, then they shouldn't have bothered and should've just sold the 5 instead.

As I see it, the 5C is primarily meant to breath new life into last year's model. Rather than say "Hey, you can get last year's model at a discount!" Apple can now say "Hey, here's a new product!" Makes good business sense, if you ask me.

Next year, we can expect the 5CS along with the new iPhone 6.

 

[paul4339]

I'm STILL waiting for someone to do a comparison of 5C sales vs that of the 4S last year. To me, that would be more interesting to see. ...

"According to CIRP, the iPhone 5c accounts for 27% of iPhone sales vs. 64% for iPhone 5s. Last year, also according to CIRP, the iPhone 4s captured 23% vs. 68% for iPhone 5. "

.

 

[Jacquesass]

Wait until February. I'm sure we will see "new" colors released in February.

This is a common strategy of the Android phone manufacturers. Release a few basic colors at launch. Then, in a few month (or weeks), release carrier specific colors.

AT&T will probably get black. Verizon will probably get dark blue. Sprint will probably get garnet red.

Great point.

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So what you are "just saying" is that men who buy a 5c are effeminate?

No, Ignatius, not at all.

To each their own - I'm just surprised they went with only pastels + white. Some guys (and girls) are cool with pastels - but a bunch of guys (and girls) aren't.

 

[hchung]

So why did the complete opposite happen for the 5s?

Like most people I'm only going on the vague metrics and rumours as everybody else but it's clear that a big part of Apple's hype-based marketing strategy is to boast about launch stock sell outs. This is routinely followed by the "we just couldn't make enough to satisfy demand" mantra that is so predictable it's getting a little passé.

The fact this didn't happen for a new iPhone, that retailers here in Australia said demand for the 5c was very weak with stock readily available and rumours of cuts to orders for the 5c and significant increases for the 5s suggests Apple didn't play their cards right and got too greedy on the 5c's pricing. We've already seen price cuts for the 5c as a result, but not the 5s and these price cuts could also be contributing to the increasing 5c/5s ratio observed.

It could be that some parts required are in short supply, so production couldn't be raised until now.
It's not like 2d fingerprint readers and custom SoCs are a highly-stocked off the shelf parts.