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..
Exactly. The only actual facts out there indicate that the 5S and 5C have been selling quite well. Kuo's prediction is insane.
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.
Yet the 5C is the second best selling phone in the US in September - even though it had only half a month while all the other phones were sold for the full month. Why would Apple cut the price further? And what expertise do you have that makes you better able to set prices and market strategies than Apple? How many multibillion dollar products have you produced?
Besides, if you're going to make that argument, you need to carry it to its conclusion. Since the 5C outsold every other phone except the 5S in September (US sales, major carriers), then by your logic EVERY OTHER PHONE MANUFACTURER on the planet needs to be cutting their price. In fact, they should be paying you to take a phone off their hands.
It's even more nuts when you consider the rest of the story. The problem with Kuo's predictions is that they don't make sense. Apple sold 9 M phones the first weekend. Every estimate says that the 5S outsold the 5C by a wide margin, so there were perhaps 3 M 5C phones sold the first weekend. Even with less than 2 weeks on the market, the phone is one of the top sellers for every US carrier. Kuo is predicting 11 M sales for the month (which essentially means that sales will ACCELERATE after the first weekend) but then calls it a flop. And if Munster were correct and a lot of those first weekend sales were just filling the channel, then the acceleration at the end of the month is even greater. Then, Kuo predicted that sales (which were accelerating in September) fall off a cliff and they'll sell fewer phones in the 3 month Christmas quarter than in the first 10 days.
It's just a totally irrational prediction.
Why? They have a good, better, best strategy which appears to be working. The 'free' 4S is for the cheap bottom feeders. A price increase cuts out that group of customers.
OK, so you don't understand their strategy. Let's put that in perspective:
Apple is, by far, the industry leader in terms of innovation and successful market positioning.
The 5C sold millions of units on launch and is the #2 phone for the month of Septermber at 3 of the 4 US carriers (#3 at the fourth) - even though it was only available for half the month.
I would say the problem is on your end, not Apple's.