Apple can't announce this partnership soon enough. Time will tell if the 5C pricing was a mistake. A lot of pundits thought the iPad mini would be cheaper too. Yet the product still sold very well.
The iPad mini was arguably a better product than the original overall though. It is a similar situation in that the mini had "last years" internals, which is probably in part what prompted Apple to think that they might get away with doing that again, but I would argue that the mini sold because it's a better form factor than the original in so many ways. The iPhone 5c has … colours.
I think it will increase sales for a variety of reasons and the fact that they are even on China mobile will as well. Next year they will be up on stage telling us what a success it all was, but in fact it will be a moderate success. A moderate success that disguises the fantastic success they could have had with a truly affordable off contract iPhone. The addition of huge numbers of China mobile subscribers and the general rise in popularity and market share will cover up the fact that it could have been so much better.
So the consensus by the critics posting here is that Apple should go cheap, join the race to the bottom just so they can make a claim in the numbers game? So you have fallen for the "market share means everything" FUD? The Fandroids taunting has finally gotten to you? Na na-na, na-na na, Android rules the world because it's on more crappy phones! Apple is doomed!
The idea of quality, design, function, and just plain good taste is anathema to this crowd. You want the 5c to be the cheapest piece of crap so it can be free on contract. You all should just switch platforms and be done with it. Your mentality is much more suited to that tasteless, fragmented excuse for a platform.
All you complainers really are like spoiled kids at Christmas.
You dream up what you want almost immediately after LAST Christmas is over, and start yapping about it, believing that if you yap loud enough and long enough that you'll get it.
You look through all the gifts under the tree for yours. You heft them, shake them, compare their sizes to what you remember seeing on the store shelves. Some even try to open a corner of the wrapping.
And then, OH THE DISAPPOINTMENT! It wasn't what you wanted. Wrong color, not the more expensive one, CLOTHES (yuk!).
It doesn't faze you at all that your parents have your best interests at heart. While they may want to please you, if what you're asking for is junk in their minds or they can't afford it, they're going to at least get you what they think is worthwhile or what you actually need.
So Apple's done it yet again: they came up with some more great new products.
Careful now! If you reject your presents, then they may just go to others who DO appreciate them!
Personally, I'm rather proud of how they "unapologetically" refused to sell a cheaper iPhone.
IMO, by judging Apple with the optics of the stock market, we risk losing sight of what this company is about. I appreciate, respect that some here have much invested. But going against the grain is Apple's trademark, lest we forget.
First, 'less expensive' does not equal 'cheap.'
Second, I truly wish Apple would 'go against the grain' some more, and break a few molds. What we're seeing out of this team -- so far -- is conservatism.
Isn't it likely that China Mobile will sell the 5C at a substantially lower price with a subscription, and the reason it took so long to sign a deal was that Apple wanted to sell the 5C cheaper unlocked in China?
At $550, its not "true mid-level", its still high end prices...
I dont mind Apple selling this 5C at $550 with the ip5 specs, BUT then they should also do a $400 phone with the 4s specs. Its not just emerging markets, its all markets that will get hurt.
I've seen all those. I'm talking about full on reviews. Obviously there is an embargo until a certain date. I'm wondering when that is.
It doesn't look to be "embargoed" at all if Ars has one for review and openly publishes what it sees. Here's another hands-on review, meaning they also have one to evaluate and there was (almost certainly) no restriction on commenting about it now. http://www.techradar.com/us/reviews/phones/mobile-phones/iphone-5s-1179315/review
Perhaps you're waiting on an Anandtech type highly-detailed review? Those take a while to do properly.
At $550, its not "true mid-level", its still high end prices...
I dont mind Apple selling this 5C at $550 with the ip5 specs, BUT then they should also do a $400 phone with the 4s specs. Its not just emerging markets, its all markets that will get hurt.
It follows the pattern Apple has had for years - Good, better, best. They simply used the 5C instead of the 5 for 'better'.
Apple is not going to sell a cheap phone. Get over it.
If they did release a very inexpensive phone and increased sales worldwide, while lowering their margins, then the WS gurus would cream them next year for y/y losses if the assumption is a cheaper phone would lead to massive sales. Either way, they lose. Cheap price, lower margins massive sales this year. Higher price, lower sales, but with the option of lowering the 5c next year so y/y looks great.
You analysis makes ZERO sense. Why would earnings drop 25%. Its not like Apple had a 'mid range' phone before. The only way I could see earnings dropping that much is if they did release a cheap phone for $300. They would sell more phones but their margins would be cut in half. By pricing the 5C near the high end they will maintain or even increase margins.
And tell me what other phone has Apple ecosystem, build quality, customer service, and prestige that is priced at $550? There is none. Why should Apple sell a phone for $300 that gives so much value.
To garner market share. Apple has been downgraded by 3 banks today despite the china mobile deal. The stock market wants apple to surrender margin for share, it is a platform war after all. Android is fast becoming the developer first option here in Europe. America may be an iOS bubble. The world isn't. And why wouldn't apple compete?
I guess the message to take out of this is there is only so much money you can squeeze out of the smartphone market and Apple is topped out. If they cant come up with a profitable lower end phone that wont cannibalize high end sales then this pricing makes sense, but it sends a clear message Apple stock only has one way to go, down.
Under Cook's tenure the only thing they've done is make a small iPad. Is Apple ever going to release a new product under Cook? Apple is floundering (once again, in comparison to the last 6 years) and unless they can make money off the operating system it's hard to see the trend reversing itself.
imo $450 for a 8g 3.5" phone is insulting. The 4.7" Nexus 4 at $200 beats the 4s on almost all metric. That being said, Apple could still do good on the tablet side, the stock could be a buy around $400
It follows the pattern Apple has had for years - Good, better, best. They simply used the 5C instead of the 5 for 'better'.
Apple is not going to sell a cheap phone. Get over it.
Yeah. Get over it customers who want a cheaper phone for themselves or presents, investors who wanted to see market share increase, existing customers who would like to see Apple maintain market share so the platform is viable for developers, Android users who would like to switch, pre-paid customers who want an iPhone or future investors who would like to invest in a growth company.
Regarding the 5c pricing...Apple is doing the right thing here. Whether you like it or not. Apple is setting the bar not following others to the bottom. It makes no sense for them to gain unprofitable marketshare by offering a low price to satisfy investors.
Apple has to support its ecosystem. Profit is the number one way to do that. If they sold a hundred million extra iPhones, they would have to spend $X amount in order to beef up the back end to support (data centers) all the new users. Apple is not going to sacrifice quality of service, potentially pissing off customers, to make investors happy. They have been very smart to roll out new services incrementally. First on top tier products and then waiting to move down product lines until the service has the back end support to serve much higher demand.
Marketshare for marketshare's sake is a meaningless endeavor, when you already have a thriving ecosystem in place, huge developer support and the most satisfied customers in the industry. Developers aren't going to run to Android just because it is "shipped" on more devices - they'll go to whichever platform has real users. So while Google talks-the-talk and claims more "Activations", which is supposed to impress, Apple walks-the-walk and reports a very different and much more important number to developers, how much money developers have made thus far; over $10 billion. Activations do not mean anything unless you have other numbers to back the reason why it is so important.
Comments
Apple can't announce this partnership soon enough. Time will tell if the 5C pricing was a mistake. A lot of pundits thought the iPad mini would be cheaper too. Yet the product still sold very well.
The iPad mini was arguably a better product than the original overall though. It is a similar situation in that the mini had "last years" internals, which is probably in part what prompted Apple to think that they might get away with doing that again, but I would argue that the mini sold because it's a better form factor than the original in so many ways. The iPhone 5c has … colours.
I think it will increase sales for a variety of reasons and the fact that they are even on China mobile will as well. Next year they will be up on stage telling us what a success it all was, but in fact it will be a moderate success. A moderate success that disguises the fantastic success they could have had with a truly affordable off contract iPhone. The addition of huge numbers of China mobile subscribers and the general rise in popularity and market share will cover up the fact that it could have been so much better.
So the consensus by the critics posting here is that Apple should go cheap, join the race to the bottom just so they can make a claim in the numbers game? So you have fallen for the "market share means everything" FUD? The Fandroids taunting has finally gotten to you? Na na-na, na-na na, Android rules the world because it's on more crappy phones! Apple is doomed!
The idea of quality, design, function, and just plain good taste is anathema to this crowd. You want the 5c to be the cheapest piece of crap so it can be free on contract. You all should just switch platforms and be done with it. Your mentality is much more suited to that tasteless, fragmented excuse for a platform.
http://video.cnbc.com/gallery/?play=1&video=3000197443
All you complainers really are like spoiled kids at Christmas.
You dream up what you want almost immediately after LAST Christmas is over, and start yapping about it, believing that if you yap loud enough and long enough that you'll get it.
You look through all the gifts under the tree for yours. You heft them, shake them, compare their sizes to what you remember seeing on the store shelves. Some even try to open a corner of the wrapping.
And then, OH THE DISAPPOINTMENT! It wasn't what you wanted. Wrong color, not the more expensive one, CLOTHES (yuk!).
It doesn't faze you at all that your parents have your best interests at heart. While they may want to please you, if what you're asking for is junk in their minds or they can't afford it, they're going to at least get you what they think is worthwhile or what you actually need.
So Apple's done it yet again: they came up with some more great new products.
Careful now! If you reject your presents, then they may just go to others who DO appreciate them!
First, 'less expensive' does not equal 'cheap.'
Second, I truly wish Apple would 'go against the grain' some more, and break a few molds. What we're seeing out of this team -- so far -- is conservatism.
Isn't it likely that China Mobile will sell the 5C at a substantially lower price with a subscription, and the reason it took so long to sign a deal was that Apple wanted to sell the 5C cheaper unlocked in China?
flyingviking
Isn't the 4S $450 now?
It doesn't look to be "embargoed" at all if Ars has one for review and openly publishes what it sees. Here's another hands-on review, meaning they also have one to evaluate and there was (almost certainly) no restriction on commenting about it now.
http://www.techradar.com/us/reviews/phones/mobile-phones/iphone-5s-1179315/review
Perhaps you're waiting on an Anandtech type highly-detailed review? Those take a while to do properly.
It follows the pattern Apple has had for years - Good, better, best. They simply used the 5C instead of the 5 for 'better'.
Apple is not going to sell a cheap phone. Get over it.
If they did release a very inexpensive phone and increased sales worldwide, while lowering their margins, then the WS gurus would cream them next year for y/y losses if the assumption is a cheaper phone would lead to massive sales. Either way, they lose. Cheap price, lower margins massive sales this year. Higher price, lower sales, but with the option of lowering the 5c next year so y/y looks great.
It follows the pattern Apple has had for years - Good, better, best. They simply used the 5C instead of the 5 for 'better'.
Apple is not going to sell a cheap phone. Get over it.
Being completly out of the stock helps getting over it indeed. They can go and paint themselves into a niche market all they want.
To garner market share. Apple has been downgraded by 3 banks today despite the china mobile deal. The stock market wants apple to surrender margin for share, it is a platform war after all. Android is fast becoming the developer first option here in Europe. America may be an iOS bubble. The world isn't. And why wouldn't apple compete?
I guess the message to take out of this is there is only so much money you can squeeze out of the smartphone market and Apple is topped out. If they cant come up with a profitable lower end phone that wont cannibalize high end sales then this pricing makes sense, but it sends a clear message Apple stock only has one way to go, down.
Under Cook's tenure the only thing they've done is make a small iPad. Is Apple ever going to release a new product under Cook? Apple is floundering (once again, in comparison to the last 6 years) and unless they can make money off the operating system it's hard to see the trend reversing itself.
Just because the iPhone has a chip that supports China Mobile's network, doesn't mean China Mobile will sell or support it.
Isn't the 4S $450 now?
imo $450 for a 8g 3.5" phone is insulting. The 4.7" Nexus 4 at $200 beats the 4s on almost all metric. That being said, Apple could still do good on the tablet side, the stock could be a buy around $400
Yeah. Get over it customers who want a cheaper phone for themselves or presents, investors who wanted to see market share increase, existing customers who would like to see Apple maintain market share so the platform is viable for developers, Android users who would like to switch, pre-paid customers who want an iPhone or future investors who would like to invest in a growth company.
Everybody else is happy though.
Regarding the 5c pricing...Apple is doing the right thing here. Whether you like it or not. Apple is setting the bar not following others to the bottom. It makes no sense for them to gain unprofitable marketshare by offering a low price to satisfy investors.
Apple has to support its ecosystem. Profit is the number one way to do that. If they sold a hundred million extra iPhones, they would have to spend $X amount in order to beef up the back end to support (data centers) all the new users. Apple is not going to sacrifice quality of service, potentially pissing off customers, to make investors happy. They have been very smart to roll out new services incrementally. First on top tier products and then waiting to move down product lines until the service has the back end support to serve much higher demand.
Marketshare for marketshare's sake is a meaningless endeavor, when you already have a thriving ecosystem in place, huge developer support and the most satisfied customers in the industry. Developers aren't going to run to Android just because it is "shipped" on more devices - they'll go to whichever platform has real users. So while Google talks-the-talk and claims more "Activations", which is supposed to impress, Apple walks-the-walk and reports a very different and much more important number to developers, how much money developers have made thus far; over $10 billion. Activations do not mean anything unless you have other numbers to back the reason why it is so important.