or Connect
AppleInsider › Forums › Mobile › iPhone › Apple rumored to have cut CDMA iPhone 4 orders by half as sales slow
New Posts  All Forums:Forum Nav:

Apple rumored to have cut CDMA iPhone 4 orders by half as sales slow

post #1 of 33
Thread Starter 
Sales of Apple's CDMA-based iPhone, which made its debut on Verizon earlier this year, have reportedly eased considerably following initial pent-up demand, prompting the company to halve its production of the device for the remainder of 2010.

According to a report by DigiTimes, iPhone 4 assembler Pegatron this week reported a net losses of NT$559 million (US$19.38 million) for the first quarter of 2011 with per-share earnings of negative NT$0.25 and gross margin of only 1.8%, all historical lows.

The results are said to have surprised market watchers, who were initially bullish on the manufacturer's performance in 2011 after it landed orders to produce the CDMA iPhone 4 for Apple. Looking forward, those market watchers are said to be "turning conservative about CDMA iPhone 4 shipments in the future as volumes may not be as strong as expected."

Specifically, the report claims that Pegatron originally expected to ship 10 million CDMA iPhone 4s to Apple in 2011, but "sources from upstream component makers pointed out that Apple's orders already saw a significant reduction and the volume is estimated to drop to only five million units."

For its part, Apple is believed to have already assembled and shipped more than 3 million CDMA iPhone 4s during the first calendar quarter of 2011, 2.2 million of which were activated by Verizon and another million or so that went to fill the channel or were purchased and exported unactivated.

Assuming DigiTime's latest report is accurate, it would suggest Apple only plans to sell roughly 1 million units per quarter for the next two quarters before it introduces a universal iPhone 5 around the fourth quarter of 2011 that will be capable of running on both CDMA and GSM networks.

Though much excitement in the consumer space proceeded this January's launch of the CDMA iPhone on Verizon's network, demand for the device is believed to have quickly trailed off due to a number of factors, including initial reviews that placed the speed of the carrier's 3G network well behind that of rival AT&T's.



Consumers are also believed to have seen less of a value proposition in the initial Verizon device, which arrived with a design and feature set nearly identical to the existing iPhone 4 for GSM networks, which history would suggest is nearing the final stretch of its life-cycle.

Add to that weeks of rumors of an all new, universal iPhone 5 heading to manufacturing this September, and it may be safe to presume that the best days for sales of CDMA-capable iPhones are yet to come.
post #2 of 33
Quote:
Originally Posted by AppleInsider View Post

Sales of Apple's CDMA-based iPhone, which made its debut on Verizon earlier this year, have reportedly eased considerably following initial pent-up demand, prompting the company to halve its production of the device for the remainder of 2010.

2010? I guess that's a typo!
post #3 of 33
I can't imagine anyone doing business with Verizon if don't have too.
post #4 of 33
I for one didn't want to downgrade to voice or data, I like having the ability to do both!
post #5 of 33
Quote:
Assuming DigiTime's latest report is accurate, it would suggest Apple only plans to sell roughly 1 million units per quarter for the next two quarters before it introduces a universal iPhone 5 around the fourth quarter of 2011 that will be capable of running on both CDMA and GSM networks.

why is everyone treating the Sept-release as a fact?
post #6 of 33
Quote:
Assuming DigiTime's latest report is accurate...

DigiTimes is not a credible news source so I wouldn't assume anything they write is accurate.
post #7 of 33
Not surprised here. When you really look at Verizon-CDMA, why would anyone want that network? Verizon has crippled the iPhone: higher cost of entry, slower network, no data/voice multitasking, no global access, and limited conference call features (can not add more than 1 and can not drop individual participants).
post #8 of 33
i just replaced my old t-mobile phone and thought i'd try a verizon.

the sales experience alone should have drove me out, but an hour later at the cash register, i walked out with a phone.

worst (sales & phone) experience ever. i returned the phone and went back to t-mobile.
post #9 of 33
Quote:
Originally Posted by Bakloyd View Post

why is everyone treating the Sept-release as a fact?

I was thinking the same thing. It's true that there are many circumstantial reasons to believe that might be the case, but it's pretty far from a fact, and Apple loves surprising people. Don't get me wrong -- if I were betting, I'd bet on September over June or July. But I wouldn't bet much.

As for the larger story -- I'm a little surprised that they would cut orders just because Verizon's sales are (allegedly) weaker than expected. Aren't there other CDMA carriers in the world (South Korea, India) that could also sell these phones? Or are their networks sufficiently different that a CDMA phone for Verizon couldn't simply be re-allocated to one of those carriers?
post #10 of 33
If true, it is excellent news that Apple adjust manufacturing so deftly to match needs.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #11 of 33
I for one predict that CDMA iPhone 4 orders will continue to diminish, and by late 2011 they will be down to a slow trickle, with the biggest decline in sales coinciding roughly with the announcement and release of iPhone 5. Sorry if this comes as a shock to anyone here.
post #12 of 33
Quote:
Originally Posted by Retrogusto View Post

I for one predict that CDMA iPhone 4 orders will continue to diminish, and by late 2011 they will be down to a slow trickle, with the biggest decline in sales coinciding roughly with the announcement and release of iPhone 5. Sorry if this comes as a shock to anyone here.

I get your sarcasm, of course it is common sense that sales of a CE device will slow at the end of the life cycle and before an obvious upgrade. However, I had just been noticing how many of my coworkers are buying Verizon iPhones right now. 2 last week and one this week. Considering that is out of 40 coworkers, it seemed to me to be a high number. All three are existing Verizon customers and new to smart phones (so they are not at all concerned about simultaneous voice and data).

Anyway, I had just been feeling bullish about CDMA iPhone sales because it seemed that pent up demand was changing historical buying patterns...

Sigh. I guess that is why they call it anecdotal evidence!
Progress is a comfortable disease
--e.e.c.
Reply
Progress is a comfortable disease
--e.e.c.
Reply
post #13 of 33
Quote:
Originally Posted by Retrogusto View Post

I for one predict that CDMA iPhone 4 orders will continue to diminish, and by late 2011 they will be down to a slow trickle, with the biggest decline in sales coinciding roughly with the announcement and release of iPhone 5. Sorry if this comes as a shock to anyone here.

Don't worry, Apple still will sell more iPhone 4s this (April-June) quarter than the previous and set another all-time record.

Don't forget though... the white iPhone on Verizon will kick on CDMA sales for a few months, before dying down.
post #14 of 33
I don't think it's due to the network features at all. It's as simple as Apple waiting too late to bring it to Verizon. Not only did they wait so many years, but also debuted it mid-product cycle. Why would anybody buy it when iPhone 5 is a few months away? I got so tired of waiting for the iPhone that I went ahead and got locked into a contract with my Droid, and will not be upgrading for another year. I'm sure this is the case for a lot of people. Huge mistake for Apple.
post #15 of 33
I think a lot of people were waiting for apple in verison for a long time. While waiting they tried an android phone and then realised getting a new iPhone would be a downgrade.
post #16 of 33
Quote:
Originally Posted by Bakloyd View Post

why is everyone treating the Sept-release as a fact?

Quote:
Originally Posted by Blastdoor View Post

I was thinking the same thing. It's true that there are many circumstantial reasons to believe that might be the case, but it's pretty far from a fact, and Apple loves surprising people. Don't get me wrong -- if I were betting, I'd bet on September over June or July. But I wouldn't bet much.

In life circumstantial is more than enough to make a likely scenario. We cant verify everything in life first hand or qualify every statement or wed end up with comments that look like a privacy policy.

Its not just the rumours, its the lack of a Special Event in April for iOS 5.0. so developers can have a lead in for the June/July release. Its the fact that Lion will drop this Summer which has historically pushed focused to other parts of Apples business, though before it was from Mac OS to iOS. There are other little things that just make it seem most likely at this point.


Quote:
As for the larger story -- I'm a little surprised that they would cut orders just because Verizon's sales are (allegedly) weaker than expected. Aren't there other CDMA carriers in the world (South Korea, India) that could also sell these phones? Or are their networks sufficiently different that a CDMA phone for Verizon couldn't simply be re-allocated to one of those carriers?

South Korea isnt a good candidate. LG is the only carrier it would make sense and they are the smallest in the country. Having a CDMA(2G)/UMTS(3G) phone doesnt make much sense when UMTS can do voice and data at good rates. India is large but there are many issues there, too. I think Chinas smallest carrier China Unicom would make the most sense for a CDMA/CDM2000 device for the next addition outside the country. Overall I think Sprint would make the most sense.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #17 of 33
Quote:
Originally Posted by noexpectations View Post

Not surprised here. When you really look at Verizon-CDMA, why would anyone want that network? Verizon has crippled the iPhone: higher cost of entry, slower network, no data/voice multitasking, no global access, and limited conference call features (can not add more than 1 and can not drop individual participants).

Hmmmm, I don't know. Lets ask the 100+ million subscribers they have.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #18 of 33
Quote:
Originally Posted by Bakloyd View Post

why is everyone treating the Sept-release as a fact?

I agree, it can also be read as the sales are as expected and they plan on a new phone on July..

Either way they are saying the iPhone 4 is likely to remain Verizon's #1 handset until the iPhone 5...
post #19 of 33
Wow. Apple was such a great company. This is it. It's over. Stock's gonna tank today. Sell your shares. The run has come to an end. Windows Phone 7/Nokia will take over, as will Android. Call in the wolves (or Mr. Wolf).
post #20 of 33
Quote:
Originally Posted by Retrogusto View Post

I for one predict that CDMA iPhone 4 orders will continue to diminish, and by late 2011 they will be down to a slow trickle, with the biggest decline in sales coinciding roughly with the announcement and release of iPhone 5. Sorry if this comes as a shock to anyone here.

Then the iPhone 4 16GB sales will explode when it becomes the introductory device at $99.
post #21 of 33
Quote:
Originally Posted by solipsism View Post

I think Chinas smallest carrier China Unicom would make the most sense for a CDMA/CDM2000 device for the next addition outside the country.

You mean China Telecom (中国电信).
post #22 of 33
Quote:
Originally Posted by AppleInsider View Post

[...] Add to that weeks of rumors of an all new, universal iPhone 5 heading to manufacturing this September, and it may be safe to presume that the best days for sales of CDMA-capable iPhones are yet to come. [...]

Yeah, I think that's why. Surprise.

Sent from my iPhone Simulator

Reply

Sent from my iPhone Simulator

Reply
post #23 of 33
Quote:
Originally Posted by dasanman69 View Post

Hmmmm, I don't know. Lets ask the 100+ million subscribers they have.

100 million plus people easily swayed by PR and bullsht marketing.

There are only a handful of people who actually choose Verizon over AT&T, and those handful live in the 10% of land area in the United States where you can barely make an AT&T phone call.

Most people who choose between the two carriers, who are not in the minority position of living in bad AT&T coverage, pick AT&T, for all of the well known reasons. Speed, GSM versatility, and voice/data usage.


None of this has anything to do with the people who choose Verizon and have no idea why. Which would be 90% of their subscribers.
post #24 of 33
Quote:
Originally Posted by pmz View Post

100 million plus people easily swayed by PR and bullsht marketing.

There are only a handful of people who actually choose Verizon over AT&T, and those handful live in the 10% of land area in the United States where you can barely make an AT&T phone call.

Most people who choose between the two carriers, who are not in the minority position of living in bad AT&T coverage, pick AT&T, for all of the well known reasons. Speed, GSM versatility, and voice/data usage.


None of this has anything to do with the people who choose Verizon and have no idea why. Which would be 90% of their subscribers.

You are absolutely wrong about that. If marketing made so much of a difference then T-Mobile should have a lot more subs because I see WAY more of their ads than VZW, its not the phones either because T-Mobile has historically always had the best selection of phones. Its very simple, 1 out of 3 people in this country want a phone that will with a high probability complete a call to its entirety.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #25 of 33
Quote:
Originally Posted by macinthe408 View Post

Wow. Apple was such a great company. This is it. It's over. Stock's gonna tank today. Sell your shares. The run has come to an end. Windows Phone 7/Nokia will take over, as will Android. Call in the wolves (or Mr. Wolf).

You sending the Wolf?
Shit yea negro, that's all you had to say.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #26 of 33
Quote:
Originally Posted by dasanman69 View Post

You are absolutely wrong about that. If marketing made so much of a difference then T-Mobile should have a lot more subs because I see WAY more of their ads than VZW...

Dont confuse the amount of marketing with quality (red: effective) marketing, and certainly not the amount of ads you witness.

Even people having a Verizon phone is marketing. Word of mouth is a powerful tool.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #27 of 33
Quote:
Assuming DigiTime's latest report is accurate, it would suggest Apple only plans to sell roughly 1 million units per quarter for the next two quarters before it introduces a universal iPhone 5 around the fourth quarter of 2011 that will be capable of running on both CDMA and GSM networks.

That number is clearly absurd - it probably means they are looking somewhere else for components.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #28 of 33
Quote:
Originally Posted by solipsism View Post

Dont confuse the amount of marketing with quality (red: effective) marketing, and certainly not the amount of ads you witness.

Even people having a Verizon phone is marketing. Word of mouth is a powerful tool.

Are you insinuating that the "can you hear me now guy" is a better spokesperson than Catherine Zeta-Jones? Be careful them is words that'll get your man membership revoked.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #29 of 33
Although it's great for those of us who pay attention to the rumor sites to get a good idea for what will be in the next iPhone, iPod, or Mac, one possible reason for the significant drop of how many models will be made by Pegatron is that the rumor sites didn't wait for at least a month when it started selling in the retail stores to say that the Verizon iPhone 4 is using the Qualcomm MDM6600 world mode modem. Apparently, most of us (both in the U.S. and around the world) knew what that meant as far as upcoming features for the iPhone 5; and decided to hold off on purchasing an iPhone 4 and wait for iPhone 5. I, for one, am very thankful for this leak when they took apart the phone; and do very much hope that not only will the iPhone 5 work on both CDMA and GSM; but that there is also enough room to include the 1700Mhz band, so that the rumor made this past weekend of T-Mobile possibly selling it as well will become true. If that happens, hopefully it will be enough to prevent the merger of AT&T and T-Mobile; the feeling that I get when I read most of the comments from http://www.tmonews.com is that most of T-Mobile customer base will abandon ship for another carrier if this merger happens.
post #30 of 33
Quote:
I for one didn't want to downgrade to voice or data, I like having the ability to do both!

On AT&T you cant really do both anyway. Often you can do neither. You have to have a signal before you can use data and voice.

I have had lots of friends on AT&T and they have all left. And all for the same reason...crappy connections. I had one friend who live in the middle of downtown Denver and could not get a signal on AT&T...no joke. It was ridiculous.

Yeah, I know AT&T works well in some cities. But their reputation for crappy service is not undeserved. I know this from many different sources.
post #31 of 33
For all practical purposes, Apple themselves said the iPhone 4 for Verizon Wireless is a half-baked product. I believe the quote from an Apple exec was (paraphrased) "Verizon Wireless customers who want an iPhone 4 right now understand its limitations".

Verizon has a lot of smartphone customers who need features like world-capable and they are getting it with other handset but not iPhone 4. If you're one of those customers, would you give up something you consider essential or at least have counted on to get an iPhone 4? I'm sure some have but many, no doubt, haven't. They think if they wait long enough, they can ride out their Blackberrys or whatever until Apple builds features they already have into a Verizon iPhone. Such as what my friend said... "I'd get a Verizon iPhone but then I won't have a phone to use in England and Germany and I'm not switching to AT&T just for that as I don't need to".

As for the person who questioned why anyone would want Verizon Wireless over AT&T... I know people who couldn't wait to switch to VZW because their ATT service was so deplorable. What good is high data speed if your phone keep dropping telephone calls? Let's remember, the #1 reason why people have mobile phones is to talk to other people.
post #32 of 33
Quote:
Originally Posted by MrMacintosh View Post

Why would anybody buy it when iPhone 5 is a few months away?

The vast majority of iPhone users has never heard of an up and coming v5. They have enough trouble using their v4's. Verizon is the Proctor and Gamble of the phone industry. Cheap low functionality phones and poor customer service.
post #33 of 33
Quote:
Originally Posted by wizard69 View Post

I can't imagine anyone doing business with Verizon if don't have too.

Really?, I Love so-much doing business with AT&T! What the hell does your comment mean?
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › Apple rumored to have cut CDMA iPhone 4 orders by half as sales slow