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Apple's iPhone 5c orders lower than expected, insider says

post #1 of 181
Thread Starter 
Well-connected analyst Ming-Chi Kuo of KGI Securities has slashed his projected iPhone 5c shipments for the just-concluded September quarter by 33 percent, as price cuts for the new mid-range plastic handset continue at major U.S. retailers.



Kuo now projects that Apple shipped 11.4 million iPhone 5c units in the September quarter. He also expects shipments to drop sequentially by 10 percent, to 10.4 million units, in the December quarter.

Though the numbers are lower than expected, Kuo did not come to the conclusion that overall iPhone shipments will disappoint. He said sales of the iPhone 5s and legacy iPhone 4S, which is available for free on contract, remain strong.Apple doesn't break down sales of specific models, but concerns are growing that the iPhone 5c could be off to a slow start.

Kuo has a strong record of predicting Apple's moves, and was the first to reveal that the iPhone 5c would replace the iPhone 5 and become Apple's new mid-range phone, while the iPhone 4S would live on. Prior to that, market watchers expected the iPhone 5c would be made available at a more affordable price to target emerging markets and entry-level handset buyers.

The revised estimates come as retailers in the U.S. continue to offer the iPhone 5c at discounted prices, just three weeks after the handset went on sale. Starting this Sunday, Target will offer the iPhone 5c for $50 with a new two-year service contract, matching discounts already offered by Best Buy, RadioShack, and Walmart.

Checks at Apple's retail stores also indicate that the iPhone 5c remains in strong supply, while availability of the flagship iPhone 5s is constrained. Still, Apple has focused on promoting the iPhone 5c in advertisements, pushing the device as its new mainstream handset.

The iPhone 5c has largely the same components as the now-discontinued iPhone 5, but comes with a new plastic back that's available in a range of colors: yellow, blue, green, pink and white. The 16-gigabyte model is regularly priced at $99 with a new two-year service contract, while an off-contract model can be bought for $549.

When Apple reports its quarterly earnings later this month, it's unlikely that the company will break down sales of the new iPhone 5c as compared to the flagship iPhone 5s and legacy iPhone 4S. Historically Apple has declined to reveal sales of specific models for competitive reasons. Collective sales of the iPhone 5s and iPhone 5c hit 9 million during last month's launch weekend.
post #2 of 181
Plastic not so fantastic.

Why get a Volkswagen when you can get a Mercedes for $100 more.
 
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post #3 of 181
11.4 mil. in 10 days.

10.4 mil. in 92 days.

Yep. Okay. Sure. Uh hu.
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post #4 of 181

They should have upgraded the specs to be close to the 5S. No one is going to upgrade to a 5C if it isn't any better than a 5. If they wanted a 5 they would have gotten one already. This was one of the most idiotic product ideas I've ever seen at Apple. "We'll sell them last year's phone - but thicker and in plastic colors!" 

post #5 of 181

5c is aimed at a completely different audience.  I see kids wanting the 5c with multiple cases, parents paying for them for their birthday, holidays.

post #6 of 181
Lower than WHO expected?
Were 5C sales lower than APPLE expected?
Were they lower than the phone the 5C replaced, last year's 4S at this time?

The guy 1) makes a prediction, 2) sees his prediction is not true, and 3) proclaims that Apple failed to meet expectations.

Yeah, they failed to meet his arbitrary number.

In other words, HE failed. HIS prediction was WRONG.

APPLE might be very happy with their sales numbers for the 5C.
post #7 of 181
I said it here when the new phones where just announced, the so called high price on the iPhone 5c means nothing. The intent from the start was to promote the phone via sales. We will likely find that Apples sales are the strongest ever.
post #8 of 181
Quote:
Originally Posted by heroinsmoker View Post

They should have upgraded the specs to be close to the 5S. No one is going to upgrade to a 5C if it isn't any better than a 5. If they wanted a 5 they would have gotten one already. This was one of the most idiotic product ideas I've ever seen at Apple. "We'll sell them last year's phone - but thicker and in plastic colors!" 

Nope. Why would Apple cannibalize the flagship iPhone?

Edit: the 5C isn't for early adopters. It's for Android/WinMob/BBY refugees, price conscious consumers and those that don't need the latest and greatest.

The 5C is doing well compared to non iPhone 5S's.
Where did analysts get these expectations? Wild guesses and poor supply chain analysis.
post #9 of 181
11 million in September (and that is just pre-orders plus 9/20 to 9/28) and only 10 million in the whole following quarter?  I'm not sure which is less likely, but probably both.
post #10 of 181
Quote:
Originally Posted by 512ke View Post

Lower than WHO expected?
Were 5C sales lower than APPLE expected?
Were they lower than the phone the 5C replaced, last year's 4S at this time?

The guy 1) makes a prediction, 2) sees his prediction is not true, and 3) proclaims that Apple failed to meet expectations.

Yeah, they failed to meet his arbitrary number.

In other words, HE failed. HIS prediction was WRONG.

APPLE might be very happy with their sales numbers for the 5C.

 

I find it funny that you went from very decisive, "He failed. His prediction was wrong."

 

To indecisive, "Apple might be very happy...".

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post #11 of 181
Is it really disappointing comparing with last year's iPhone4S?
Since the 5C is to play the role which belonged to 4S last year.
post #12 of 181
Quote:
Originally Posted by island hermit View Post

11.4 mil. in 10 days.

10.4 mil. in 92 days.

Yep. Okay. Sure. Uh hu.

 

wtf.  Is this guy smoking crack?

post #13 of 181
Quote:
Originally Posted by pazuzu View Post

Why get a Volkswagen when you can get a Mercedes for $100 more.

I agree.  If Apple really wanted to move the 5c's (which apparently they do from all the advertising they have for them) the price should have been $49 w/ contract or $499 off contract to begin with.  $49 is much more in the impulse purchase range and would have garnered a lot more attention from the masses without killing Apple's margins.  

post #14 of 181
Quote:
Originally Posted by pazuzu View Post

Why get a Volkswagen when you can get a Mercedes for $100 more.

 

Because the diesel C-class wagon wasn't available in North America :)

 
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post #15 of 181
Quote:
Originally Posted by sog35 View Post
 

 

wtf.  Is this guy smoking crack?

 

Explain.

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post #16 of 181

5C - for kids or low tech people. With promotions this will sell big time during the holidays

5S - for techies, rich adults, ect.

 

If Apple simply released the 5 for $550 it would canibalize 5S sales and also be worse margins than the 5C.  5C is also easy to ramp up production because of the plastic case.  Great move by Apple.

post #17 of 181
This people know more than apple does! apple ahoukd take all this rats to court
post #18 of 181
Quote:
Originally Posted by island hermit View Post
 

 

Explain.

 

not you.  The guy predicting 11 million 5C sales in 10 days, then 10 million DURING THE HOLIDAY quarter.

post #19 of 181
Quote:
Originally Posted by RexXX View Post

Is it really disappointing comparing with last year's iPhone4S?
Since the 5C is to play the role which belonged to 4S last year.

 

Actually, it appears that Apple intended the 5c to play a much bigger role than the 4s last year.

 

Changing the body and then advertising the crap out of it would indicate that Apple is hoping for high sales of the 5c... maybe even in line with the 5s.

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post #20 of 181
Quote:
Originally Posted by sog35 View Post
 

 

not you.  The guy predicting 11 million 5C sales in 10 days, then 10 million DURING THE HOLIDAY quarter.

 

Thank you.

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post #21 of 181

I know Apple has better marketing info and a know better how to plan their own launches, but...

i think it was a mistake to do a 2-phone release when the screens sizes are the same.

Had they launched a 5"-6" iPhone (as predicted for 2014) and a lower-cost 5c.  I think there would be a much greater difference between the two and would make a much better marketing statement about the product line.  I'm assuming the 5c next year will get all the internals and features of the 5s this year and the iPhone 6 will be the larger screen.

I think that would have made a better approach to sales.

 

Personally, i think this year is a huge transition for Apple's products that we haven't seen the grand scheme of things yet.

post #22 of 181
Quote:
Originally Posted by heroinsmoker View Post
 

They should have upgraded the specs to be close to the 5S. No one is going to upgrade to a 5C if it isn't any better than a 5. If they wanted a 5 they would have gotten one already. This was one of the most idiotic product ideas I've ever seen at Apple. "We'll sell them last year's phone - but thicker and in plastic colors!" 

I don't think this phone is really for people to be upgrading from the iPhone 5 - this is for the 3/3GS/4/4S people.

 

Yeah, upgrading from the 5 to the 5C would be kinda dumb, unless you really really like those bright colors, but again, I don't think this is the audience for the 5C.

post #23 of 181

Steve knew what people wanted before they knew it themselves.  It worked. Dilio is right.  Even Apple can make a mistake. One mistake that the will likely continue to make now that Mr Jobs is gone is to listen to techies about what techies like...while failing to understand what the vast bulk of the users will like.  And remember, that vast bulk of more or less silent users is where the $$$ comes from, not from the techies.

 

If Apple were sensitive to that iOS7 would not look like it does.  If Apple (the new Apple under Tim) understood that they would not have wasted money and time on the 5C.  

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post #24 of 181
Quote:
Originally Posted by island hermit View Post
 

 

I find it funny that you went from very decisive, "He failed. His prediction was wrong."

 

To indecisive, "Apple might be very happy...".

Hey I am here to amuse you lol.

 

Ok I'll be decisive:  He is flat out wrong. 

 

Apple will show great numbers for the 5C in the holiday quarter.

post #25 of 181
This happens every time they release a low and high end product. Everyone that was clammering for a low end cost effective version don't really want the low end version, they end up going for the high end version when at the store, I suspect. The actions are different then the words.

But, I bet in other countries the C will be a hit.
post #26 of 181
Quote:
Originally Posted by Sky King View Post
 

Steve knew what people wanted before they knew it themselves.  It worked. Dilio is right.  Even Apple can make a mistake. One mistake that the will likely continue to make now that Mr Jobs is gone is to listen to techies about what techies like...while failing to understand what the vast bulk of the users will like.  And remember, that vast bulk of more or less silent users is where the $$$ comes from, not from the techies.

 

If Apple were sensitive to that iOS7 would not look like it does.  If Apple (the new Apple under Tim) understood that they would not have wasted money and time on the 5C.  

 

I'm not sure about the whole "if Steve" argument but I do believe that there is a lot riding on the 5c. It's Tim's first real departure from product tradition and if it flops then the analysts will be shouting, "I told you so!!".

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post #27 of 181
Quote:
Originally Posted by AppleInsider View Post

Well-connected analyst Ming-Chi Kuo of KGI Securities has slashed his projected iPhone 5c shipments for the just-concluded September quarter by 33 percent, as price cuts for the new mid-range plastic handset continue at major U.S. retailers.

Kuo now projects that Apple shipped 11.4 million iPhone 5c units in the September quarter. He also expects shipments to drop sequentially by 10 percent, to 10.4 million units, in the December quarter.


I see Kuo is doubling down on stupidity.

They're going to sell fewer units in the Christmas quarter (3 months) than they sold in half a month?

That's absolute lunacy. It's really too bad that no one keeps track of stupid predictions from analysts and docks their pay accordingly.
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post #28 of 181
Quote:
Originally Posted by island hermit View Post

I find it funny that you went from very decisive, "He failed. His prediction was wrong."

To indecisive, "Apple might be very happy...".

Enlighten me please, English teacher? Or writer?

We all speculate here. Nobody knows anything.
post #29 of 181
I played with the iPhone 5c and I hate to say the plastic feels cheap. It looks like the same material used to make those charm wrist bands when I was in elementary school.
post #30 of 181
Ehhh? so sales are bad, but it's 2nd best selling phone in ATT/Sprint and 3rd best at Verizon and T-Mobile.. Beating out all but iPhone 5S and Galaxy S 4 at Verizon/Tmo.. and it's soft?

For a phone doing poorly, it's selling awfully well.. heh.. I think we have another case of Analysts setting expectations for failure.. again..
post #31 of 181
Quote:
Originally Posted by heroinsmoker View Post

They should have upgraded the specs to be close to the 5S. No one is going to upgrade to a 5C if it isn't any better than a 5.

The 5c isn't designed for folks to upgrade from the 5. It's for new buyers and the folks hanging onto their old ass 3GS etc because they don't need the latest and greatest.

As for the whole 'lower than expected' the question is whose expectation. Kuo, Apple, someone else. Apple likely wasn't expecting it to sell hand over fist like the 'new' one. Which is why they probably planned to cut production exactly when they allegedly are. They likely have enough sales to call the gambit a success.

And if they would get their acts together on the reseller issue they would have a lot more happy users of the 5S

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post #32 of 181
Quote:
Originally Posted by Harmon View Post
 

I agree.  If Apple really wanted to move the 5c's (which apparently they do from all the advertising they have for them) the price should have been $49 w/ contract or $499 off contract to begin with.  $49 is much more in the impulse purchase range and would have garnered a lot more attention from the masses without killing Apple's margins.  

 

Most retailers ARE selling the 5c for $50.  Setting the list price at $99 and selling it at $50 also plays into the fact that people love sales especially around the holidays.  The perceived value among many people (irrational as it is) is higher because they think that they are getting something which normally costs $99 for $50 rather than a $50 phone for $50.

post #33 of 181

There was nothing wrong about the 5C, just the pricing. 

 

In any case although Kuo is the best analyst, he is saying - as already pointed out -  that Apple massively  overstuffed the channel with 10 million sold ( into channel ) in one week, and now only 11 million will sell into Christmas. 

 

Thats nuts.

 

And Apple have a clear answer here. Replace the 4S with an 8G iPhone 5C ( even with a price increase). Nothing to worry about long term. Remember the original iPhone was overpriced. 

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post #34 of 181
The low sales are hardly surprising. When the 5c was announced, I wondered why anyone other than color-conscious teen girls would buy it. It's too little for too much, particularly in comparison to the powerful and handsome 5s.

If Apple sold the 5c for $350-400, unlocked with no contract required, it'd go like hotcakes to those on budgets, particularly students who later move up to Apple's top model.

As is, it's going to be an embarrassingly failure for Apple.
post #35 of 181
Quote:
Originally Posted by antkm1 View Post

I know Apple has better marketing info and a know better how to plan their own launches, but...
i think it was a mistake to do a 2-phone release when the screens sizes are the same.

Maybe it wasn't a mistake but a signal. That folks claiming Apple is going to phablet the iPhone are wrong. At least for the foreseeable future. Think about it, Apple investing in a whole new case production in the current size is a risky biz for just one years use. Same with changing up the home button for the new touch id. Depending on the margins they might need several yrs to really see a return on those investments. So using then for one year and then moving on to something else might not be in the game. Despite what folks like Munster and his 'real' TV say

Particularly when you consider that with things like Skype and Facetime audio the iPad Mini can be a phablet already. Why would Apple have to make a phone that is just barely smaller than that.

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post #36 of 181

Does it really matter if the price of a 5c is $50, $100, or even free? That is a tiny fraction of the total cost of ownership over a 2 year contract commitment. Depending on your carrier and plan the total cost over 2 years is likely to be around $1,700. I really don't understand why anyone would choose a 5c over a 5s with just a $100 difference since that works out to only an extra $4.16 per month over the contract for a much better phone. 

post #37 of 181
Quote:
Originally Posted by Gordio View Post

I played with the iPhone 5c and I hate to say the plastic feels cheap. It looks like the same material used to make those charm wrist bands when I was in elementary school.

I would love to know what wrist bands you were wearing cause I have played with a 5c and it feels nothing like the ones from my childhood. Or cheap. In fact to me it feels far sturdier that any iPhone I've ever had. It's the first iPhone I feel, aside from the display, my ten year old brothers could not mangle within weeks

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post #38 of 181
Quote:
Originally Posted by Inkling View Post

The low sales are hardly surprising. When the 5c was announced, I wondered why anyone other than color-conscious teen girls would buy it. It's too little for too much, particularly in comparison to the powerful and handsome 5s.

If Apple sold the 5c for $350-400, unlocked with no contract required, it'd go like hotcakes to those on budgets, particularly students who later move up to Apple's top model.

As is, it's going to be an embarrassingly failure for Apple.


11 million 5c phones in two weeks.  Right, it's a failure.

Did the crystal ball in your parent's basement tell you that?
 

post #39 of 181
Lots of snarky comments here today. If I didn't know better I'd say we have some Apple hateboys posting here today. But surely that wouldn't happen on AI....

Oh, wait.
post #40 of 181
Quote:
Originally Posted by dillio View Post

The evidence keeps coming in that 5c was a bad idea. I know it's not enough for some of you who by default give Apple all the credit, but even Apple can make mistakes, you know. It's happened in the past, and this kind of attitude to endorse anything just because Apple did it, and for Apple to think that they know best what people want without regarding those people's opinions, is what can get them in trouble. That's how BlackBerry went down, because they thought they knew what their customers wanted better than their customers. 

I'm a big Apple fan, but I reserve to be critical of them, too, especially of late, after the 5c came out and after iOS7. 
What evidence. We have no FACTS that the 5C isn't selling well. The only one who has sales figures Apple. Wall Street analysts are just making guesses. But guesses aren't FACT!!
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