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Alleged cuts to iPhone 5c orders cited as Apple supplier Pegatron's profits disappoint

post #1 of 42
Thread Starter 
The launch of the iPhone 5c helped push Pegatron to record revenues last quarter, but pressure on margins and rumors of alleged order cuts for Apple's new plastic-backed handset have caused concern for the supplier.

iPhone 5c


Pegatron reported lower-than-expected third-quarter net profit on Monday, as costs associated with the ramp-up in production of the iPhone 5c affected the company's bottom line. While Foxconn has been Apple's primary assembly partner for years, Pegatron has nudged its way in with contract to build both the iPhone 5c and the iPad mini.

Two different major news organizations reporting on Pegatron's earnings on Monday both cited unnamed sources as saying that Apple has cut orders for the iPhone 5c. The new plastic iPhone model has seen "weak sales" since its launch in September, according to The Wall Street Journal, which has apparently led Apple to raise orders for the flagship iPhone 5s through assembly partner Foxconn.

Separately, Reuters also reported that Pegatron has been affected by "order cutbacks" for the iPhone 5c. Those alleged reductions were prompted by "less-than-stellar sales," the report said, and have left market watchers concerned about Pegatron's prospects for the end of 2013.

Rumors of disappointing iPhone 5c sales are not new, though it's possible that order revisions through Pegatron could have another explanation. Last week, it was reported that Apple is actually adding new suppliers for both the iPhone 5c and iPad mini to boost production in 2014. Specifically, Taiwan-based contract manufacturesr Wistron and Compal Communications are expected to join Foxconn and Pegatron has assemblers.



Speculation about iPhone 5c sales is partially driven by the fact that Apple does not break down sales figures for specific models, citing competitive reasons. The iPhone 5c and iPhone 5s both went on sale the same day in September, and reached sales of 9 million units in their first three days of availability.

Some market watchers believe the success of Apple's iPhone 5c lies in the long run, as early adopters are much more likely to buy Apple's flagship iPhone 5s, with the speedy A7 chip and Touch ID fingerprint sensor, than a plastic phone featuring components from last year's iPhone 5. The belief is casual smartphone buyers, who may not feel a need to upgrade as soon as Apple launches a new handset, will be drawn to the five color options available in the iPhone 5c lineup.
post #2 of 42
Another day another anonymous source in the supply chain claiming iPhone 5C orders are being cut. And we'll get another thread full of posts complaining about cost, colors, etc. without anyone questioning the original story. Yawn.
post #3 of 42
And people say Apple products are too expensive, while their customers buy the more expensive model.
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post #4 of 42
Quote:
Originally Posted by Rogifan View Post

Another day another anonymous source in the supply chain claiming iPhone 5C orders are being cut. And we'll get another thread full of posts complaining about cost, colors, etc. without anyone questioning the original story. Yawn.

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

 

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

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post #5 of 42
lol, they should have started with the Apple is adding new suppliers bit.. Apple's had issues with Pegatron several times now.. I suspect this 'rumor' is more disgruntled supplier talk as I highly doubt they have inside information on sales figures. They get the orders, they build it.. No reason for them to have sales info..

All they know is Apple is not using them as they did, and I think they only have themselves to blame for it.. several 'labor' issues have come up with Pegatron in the past year.. You don't play by the rules, you loose the business.
post #6 of 42
Quote:
Originally Posted by saarek View Post
 

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

 

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

Yes, just saw several people buying them in the Apple store.. and on Twit a guy had one.. he preferred the 'red/pink' phone.. ick.. haha!

post #7 of 42
Apple is increasing production of the 5C.

The 5C is a very successful phone that well outsells last years 4S that it replaces.

Look at Apples last reported iPhone sales. The 5S was in limited supply. You don't get those fantastic numbers without healthy 5S sales.

Maybe this article or the cited source is just trying to disparage Apple. They can't do it through facts. So why not just make stuff up?
post #8 of 42

Looking for signs of Apple’s demise has become a cottage industry. Do other companies get this kind of scrutiny? Or is it just because we see more of it on tech websites?

post #9 of 42
Quote:
Originally Posted by saarek View Post

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.
I have no idea because I don't pay attention to what phone someone is using.
post #10 of 42
My friends just upgraded to 5C from 4 and 4S. They both got the white one and I've gotta say, it looks fantastic. I have a 5S myself, and the 5C is just as snappy and runs iOS 7 like a beast. It's just lacking the fingerprint sensor, improved camera with ability to take 120FPS, and the benefits that next-gen 64bit processing will bring. They also seem indestructible.

However, IMHO, milled aluminum is aesthetically incredible.
post #11 of 42
Wow, bad news, people are shunning cheaper iPhones in favor of more expensive and profitable ones This should send its stock down to new lows. /s/
A.k.a. AppleHead on other forums.
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post #12 of 42
Didn't we see an article about Apple hiring new suppliers for the 5C last week?
post #13 of 42
I often wonder who starts these supply chain "leaks". I follow a few companies that manufacture products but I almost never see things about what's going on in their supply chains. Now Amazon has the Fire HDX and Bezos never releases Kindle sales numbers. I honestly have never heard about any supply chain numbers about Kindle production being tossed around. Seriously, why would suppliers be announcing cuts from a particular company when they're probably bound under contract not to let out that sort of information. When the original Surface RT was being sold, I know that I never read any stories about production cuts. Sure, I heard vague stories about lowered sales expectations but that's about it. With this article it talks about "cited cuts" but those cuts of the 5c production could also mean Apple had to use those production lines to increase 5s production which would be a good thing.

I'm just saying the article is fishing to blame Apple for Pegatron's losses. Apple isn't Pegatron's only client. Pegatron was originally a subsidiary for Asus and they make all sorts of products such as motherboards, game consoles, netbooks, set-top boxes, etc. To pin their losses on 5c production cuts seems to be quite a stretch. Unless Pegatron actually came out and said their losses were caused by Apple 5c cutbacks, then there's no guarantee this article is valid at all. Unofficial unnamed sources blaming Apple don't mean a damn thing.
post #14 of 42
Quote:
Originally Posted by Rogifan View Post


I have no idea because I don't pay attention to what phone someone is using.

 

Well, I do pay attention, actually, close attention, and I have seen one. The most popular phone so far that I've seen in the wild has been the Iphone 5 followed by various Android phones, mainly Samsung, quite a few 5s (which still could outnumber any specific Android variety, not sure), some 4 or 4s and then, still, a few blackberries.

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post #15 of 42
Quote:
Originally Posted by island hermit View Post

Well, I do pay attention, actually, close attention, and I have seen one. The most popular phone so far that I've seen in the wild has been the Iphone 5 followed by various Android phones, mainly Samsung, quite a few 5s (which still could outnumber any specific Android variety, not sure), some 4 or 4s and then, still, a few blackberries.

That's a busy island you're a hermit on.
post #16 of 42
Here's the WSJ story not behind a paywall:

edit: never mind, they shut that door.
Edited by Flaneur - 11/11/13 at 7:56am
post #17 of 42
Quote:
Originally Posted by Flaneur View Post


That's a busy island you're a hermit on.

 

Naw, it just tells me that a few people on here that say they are paying attention really aren't. ;)
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post #18 of 42
Quote:
Originally Posted by saarek View Post
 

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

 

 

I see way more 5C on the street than the others. Very distinctive and easy to pick out. much easier than picking out a 5S out of the crowd of plain 5s.

post #19 of 42
Quote:
Originally Posted by DCGOO View Post

I see way more 5C on the street than the others. Very distinctive and easy to pick out. much easier than picking out a 5S out of the crowd of plain 5s.
Maybe it's just Cardiff then, one day I know I'll see one that's not in a shop window.
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post #20 of 42
Quote:
Originally Posted by Constable Odo View Post

I often wonder who starts these supply chain "leaks". I follow a few companies that manufacture products but I almost never see things about what's going on in their supply chains. Now Amazon has the Fire HDX and Bezos never releases Kindle sales numbers. I honestly have never heard about any supply chain numbers about Kindle production being tossed around. Seriously, why would suppliers be announcing cuts from a particular company when they're probably bound under contract not to let out that sort of information. When the original Surface RT was being sold, I know that I never read any stories about production cuts. Sure, I heard vague stories about lowered sales expectations but that's about it. With this article it talks about "cited cuts" but those cuts of the 5c production could also mean Apple had to use those production lines to increase 5s production which would be a good thing.

I'm just saying the article is fishing to blame Apple for Pegatron's losses. Apple isn't Pegatron's only client. Pegatron was originally a subsidiary for Asus and they make all sorts of products such as motherboards, game consoles, netbooks, set-top boxes, etc. To pin their losses on 5c production cuts seems to be quite a stretch. Unless Pegatron actually came out and said their losses were caused by Apple 5c cutbacks, then there's no guarantee this article is valid at all. Unofficial unnamed sources blaming Apple don't mean a damn thing.
This is certainly not anything new. For two years now the media has been fishing for anything they could find to suggest demand for Apple products is soft. Same thing with all these labor stories....even though Foxconn and others manufacture for more than just Apple whenever there is a negative story these companies are always referred to as iPhone makers. It's all BS invented to drive negative sentiment stock price down. Heck some Wall Street firm just lowered their price target today citing weak 5C demand, even thought they admitted their "checks" show the 5C is selling better than the 4S was at this time last year.
post #21 of 42

I have seen more people with a Lumia than I have with a iPhone 5c.  3-1

 

Almost every person I see with an iPhone is the 5.

post #22 of 42
Quote:
Originally Posted by MatthewGavin View Post
 

I have seen more people with a Lumia than I have with a iPhone 5c.  3-1

 

Almost every person I see with an iPhone is the 5.

I've seen 5 5s and 1 5c.

At my sons high school, most of the girls have the older iPhone 5 and most of the guys have some android variant.

post #23 of 42
Quote:
Originally Posted by saarek View Post

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

I'm in london and have seen quite a few being used on the streets and on the tube. They are pretty distinctive - interestingly when I see people using them they are not using a case for them.
post #24 of 42
Quote:
Originally Posted by saarek View Post

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

Yes, I've seen a couple 5C's in the wild about a week or so after release.

I love these stories of "weak sales" even though the 5C is in the top 3 at the four major US carriers. So if the 5C is "weak", the Sammy GS4 must be non existent.
post #25 of 42
Quote:
Originally Posted by saarek View Post
 

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

 

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

 

I see many, many 5Cs in the wild. I guess it depends where you live. But I literally see dozens everyday. 

post #26 of 42
Quote:
Originally Posted by Rogifan View Post

Another day another anonymous source in the supply chain claiming iPhone 5C orders are being cut. And we'll get another thread full of posts complaining about cost, colors, etc. without anyone questioning the original story. Yawn.

 

..not to mention a chunk being cut out of the stock. 

post #27 of 42
I have seen at least two 5c units in the wild. Since the 5S design is little different from the 5, I don't know if I've seen any of them or not. But the 5c's distinctive colors make them really stand out.

D
post #28 of 42
Quote:
Originally Posted by virtua View Post

I'm in london and have seen quite a few being used on the streets and on the tube. They are pretty distinctive - interestingly when I see people using them they are not using a case for them.
Being cheap plastic I guess you wouldn't seek to protect it so much. I didn't bother with a case on my 3GS but have really looked after my 4s
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post #29 of 42
Yes I think so.
post #30 of 42
The 5C was stillborn, anyone with eyes could see that. Some of the f-ugliest shades of color I've ever seen on a abysmally boring and cheap looking design. Apple blew the 5C before it was ever released! It should never have seen the light of day and if SJ were still around it wouldn't have. Cook & Cos designs are out of whack with Apple's long established aesthetic.
post #31 of 42
I have yet to see one person who has the 5c
post #32 of 42
Quote:
Originally Posted by MJ Web View Post

The 5C was stillborn, anyone with eyes could see that. Some of the f-ugliest shades of color I've ever seen on a abysmally boring and cheap looking design. Apple blew the 5C before it was ever released! It should never have seen the light of day and if SJ were still around it wouldn't have. Cook & Cos designs are out of whack with Apple's long established aesthetic.

Hmm, interesting POV, considering we've heard that Steve put a 5 year plan into place before he passed away.  Just maybe he approved all of this, and Tim and Co. are just following the plan.

post #33 of 42
Quote:
Originally Posted by MJ Web View Post

The 5C was stillborn, anyone with eyes could see that. Some of the f-ugliest shades of color I've ever seen on a abysmally boring and cheap looking design. Apple blew the 5C before it was ever released! It should never have seen the light of day and if SJ were still around it wouldn't have. Cook & Cos designs are out of whack with Apple's long established aesthetic.

Missing sarcasm tag.
post #34 of 42
Quote:
Originally Posted by jobsonmyface View Post

I have yet to see one person who has the 5c

Perhaps if you left your mom's basement.
post #35 of 42
Quote:
Originally Posted by saarek View Post

Have you seen a single iPhone 5c in the wild, I've kept a keen look out on my daily commute/within my office and I am yet to see someone with a 5c.

I've seen loads of 5s handsets though, I wonder if it is more popular in the US where hideously expensive contracts rule the roost and people may see it as good value.

Hang out with fashion models, artists, and musicians instead of office drones.

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"Apple should pull the plug on the iPhone."

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post #36 of 42
Quote:
Originally Posted by jobsonmyface View Post

I have yet to see one person who has the 5c

 

Commuting on the NYC subway I see plenty.  

 

What really surprises me is how many Android phones, high and mid as well as the obvious low end, I see.   I had imagined them having a smaller ratio than I see.  And, like for island hermit, a Blackberry sighting isn't rare at all.  Weird, considering the amount of doomsday surrounding it. 

post #37 of 42
Quote:
Originally Posted by MJ Web View Post

The 5C was stillborn, anyone with eyes could see that. Some of the f-ugliest shades of color I've ever seen on a abysmally boring and cheap looking design. Apple blew the 5C before it was ever released! It should never have seen the light of day and if SJ were still around it wouldn't have. Cook & Cos designs are out of whack with Apple's long established aesthetic.

 

Come on, we had ugly shades of iMac that got past Steve … Blue Dalmatian, Flower Power. 

post #38 of 42
Quote:
Originally Posted by kevt View Post
 

 

Come on, we had ugly shades of iMac that got past Steve … Blue Dalmatian, Flower Power. 

True but people were chomping at the bit to buy iMacs. No a solitary soul wants a 5c.

post #39 of 42
Originally Posted by MJ Web View Post
No a solitary soul wants a 5c.

 

Shut up.

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“The only thing more insecure than Android is its userbase.” – Can’t Remember

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post #40 of 42
Quote:
Originally Posted by MJ Web View Post

True but people were chomping at the bit to buy iMacs. No a solitary soul wants a 5c.

Obvious troll. Not worthy of a response.
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