Apple reportedly boosts iPhone 5s production by 75%, decreases iPhone 5c by 35%
Adding its voice to the cacophony of guesses regarding Apple's iPhone production, an NPD report on Friday claims iPhone 5s fabrication will soon be boosted by some 75 percent, while the 5c will see a drawback of 35 percent.
Citing channel checks, NPD Display Search "can confirm" a slowdown in iPhone 5c production, which supposedly comes along with a hefty increase in 5s orders.
The purported data was revealed in a post to NPD's Analyst Blog, a space containing articles written in a more casual tone than the company's usual research reports. A such, the piece is somewhat skewed toward the opinions of its authors, senior analysts Tina Teng and Shawn Lee, who said the sales performance of Apple's iPhone 5c has been thus far disappointing.
The analysts note two factors are accountable for the poor showing: a miscalculated China launch and consumer expectation that the phone would be "cheap."
According to the post, Apple raised the iPhone 5c's price to reach an acceptable profit margin when Chinese carriers offered competitive subsidies during the country's Golden Week holiday. This suggests Apple may have miscalculated the 5c's launch timing, Teng and Lee write, as the company was supposedly targeting the Chinese market with the device.
Further, the analysts said industry watchers and consumers were unpleasantly surprised by the 5c's base price tag, which was anticipated to be substantially lower than Apple's previous offerings. This assumption was based on early rumors claiming that the handset would be Apple's first low-cost offering.
This is contrary to reports published in the weeks leading up to the phone's debut, including a statement from the CEP of Apple's partner manufacturer Pegatron, who said the 5c would be sold as a higher end mid-tier device.
While the blog post may not be the most carefully reasoned, the data it was based on could be accurate. If so, the production cut for iPhone 5c and jump for 5s is substantial, even though Apple's original forecast is unknown.
NPD's analysis comes on the heels of a separate report from The Wall Street Journal, which cited sources as saying Apple is cutting iPhone 5c production. In a breakdown, the publication said Pegatron would see a 20-percent decrease in orders, while Foxconn is planning to cut production by roughly one third. Reuters echoed the WSJ report later that day.
Citing channel checks, NPD Display Search "can confirm" a slowdown in iPhone 5c production, which supposedly comes along with a hefty increase in 5s orders.
The purported data was revealed in a post to NPD's Analyst Blog, a space containing articles written in a more casual tone than the company's usual research reports. A such, the piece is somewhat skewed toward the opinions of its authors, senior analysts Tina Teng and Shawn Lee, who said the sales performance of Apple's iPhone 5c has been thus far disappointing.
The analysts note two factors are accountable for the poor showing: a miscalculated China launch and consumer expectation that the phone would be "cheap."
According to the post, Apple raised the iPhone 5c's price to reach an acceptable profit margin when Chinese carriers offered competitive subsidies during the country's Golden Week holiday. This suggests Apple may have miscalculated the 5c's launch timing, Teng and Lee write, as the company was supposedly targeting the Chinese market with the device.
Further, the analysts said industry watchers and consumers were unpleasantly surprised by the 5c's base price tag, which was anticipated to be substantially lower than Apple's previous offerings. This assumption was based on early rumors claiming that the handset would be Apple's first low-cost offering.
This is contrary to reports published in the weeks leading up to the phone's debut, including a statement from the CEP of Apple's partner manufacturer Pegatron, who said the 5c would be sold as a higher end mid-tier device.
While the blog post may not be the most carefully reasoned, the data it was based on could be accurate. If so, the production cut for iPhone 5c and jump for 5s is substantial, even though Apple's original forecast is unknown.
NPD's analysis comes on the heels of a separate report from The Wall Street Journal, which cited sources as saying Apple is cutting iPhone 5c production. In a breakdown, the publication said Pegatron would see a 20-percent decrease in orders, while Foxconn is planning to cut production by roughly one third. Reuters echoed the WSJ report later that day.
Comments
They have data on China already? What consumer expectation? Basically they are guessing. Consumers had no expectation of a 5C.
Consumers had no expectation of a 5C.
Of course they did. Plastic phone rumours were out for months. Plastic equates to cheap in most people's minds.
I am torn, I was thinking of getting a iPhone to swap out with my Android device occasionally and I know the iPhone 5S has the 64-bit chip, finger scanner, slightly better camera W/slow motion, but I am not sure how much that matters to MOST people.
Also just a observation, but it seems even though the iPhone 5 and iPhone 5C have the same guts the [5C] seems to spank the iPhone 5 in smoothness. Maybe clock speeds are higher, since it no doubt has better yields? My dad's iPhone 5 seems slightly off since iOS 7 [and the subsequent 7.0.2 update], I may factory restore it to see if that fixes it.
That is interesting, as all I have seen in the wild so far is the iPhone 5C, though in all fairness that could be because of the color. I think it will be interesting to see how many are sold over Christmas, as carriers are no doubt going to drop the entry point to $99 with a regular contract or $0 with the newer upgrade sooner (T-Next, VZ-Edge, S-One up, TMUS-Jump) plans.
I am torn, I was thinking of getting a iPhone to swap out with my Android device occasionally and I know the iPhone 5S has the 64-bit chip, finger scanner, slightly better camera W/slow motion, but I am not sure how much that matters to MOST people.
Also just a observation, but it seems even though the iPhone 5 and iPhone 5C have the same guts the [5C] seems to spank the iPhone 5 in smoothness. Maybe clock speeds are higher, since it no doubt has better yields? My dad's iPhone 5 seems slightly off since iOS 7 [and the subsequent 7.0.2 update], I may factory restore it to see if that fixes it.
The central issue of difference and it may impact smoothness, is the 5c has a different radio chip than the 5: the same one as the 5s. That's due to their wanting to have both of the "current" devices be China Mobile LTE compatible and the chip in the 5 and before wasn't. So even in other areas there might be performance differences...
Yeah if I'd gone with looks I'd have gotten a 5c, but I'm a tech freak so I "put-up" with the more formal styling of the 5s (which is a bit prettier than the 5 IMHO) to get the higher speed etc. The scanner is one of those "future tech" things, meh in and of itself at the moment (but wait 'til it replaces all those #*&$%%^ passwords!) but it did get me to password protect the thing..... and it's worked rapidly and reliably so far so I've left it on. Which no doubt makes the SFPD and NYPD all warm and fuzzy.
Normal consumers don't read tech sites.
The scanner is a present tech. Lots of folks don't password protect and that's dangerous. This gives a simple way to protect your data and won't be annoying. I password protect and I hate typing in my code 20 times a day.
Of course they did. Plastic phone rumours were out for months. Plastic equates to cheap in most people's minds.
"Most people" don't follow rumor sites and therefor wouldn't even know of the supposed plastic iPhone before it was released. Furthermore, why would anyone think a plastic phone from Apple would be cheap? Both the iPhone 3G and 3Gs were plastic, but not cheap and the 5c is by far a much higher build quality than either of those.
If the WSJ says it, you can be sure it's wrong.
That's a pity, because a 75% increase in 5S production would be huge for Apple.
Huge.
The scanner is a present tech. Lots of folks don't password protect and that's dangerous. This gives a simple way to protect your data and won't be annoying. I password protect and I hate typing in my code 20 times a day.
Oh I agree there's present uses for the scanner but I expect the more significant benefits have yet to be realized.
No one knows if Apple had this planned or not... "Make as many 5c's as we can until we can ramp up production of the 5s. Then stop producing so many 5c's." Makes perfect business sense.
No one knows if Apple had this planned or not... "Make as many 5c's as we can until we can ramp up production of the 5s. Then stop producing so many 5c's." Makes perfect business sense.
I could see assembly being a zero sum game at some point: then they need to choose....
That is interesting, as all I have seen in the wild so far is the iPhone 5C, though in all fairness that could be because of the color. I think it will be interesting to see how many are sold over Christmas, as carriers are no doubt going to drop the entry point to $99 with a regular contract or $0 with the newer upgrade sooner (T-Next, VZ-Edge, S-One up, TMUS-Jump) plans.
I am torn, I was thinking of getting a iPhone to swap out with my Android device occasionally and I know the iPhone 5S has the 64-bit chip, finger scanner, slightly better camera W/slow motion, but I am not sure how much that matters to MOST people.
Also just a observation, but it seems even though the iPhone 5 and iPhone 5C have the same guts the [5C] seems to spank the iPhone 5 in smoothness. Maybe clock speeds are higher, since it no doubt has better yields? My dad's iPhone 5 seems slightly off since iOS 7 [and the subsequent 7.0.2 update], I may factory restore it to see if that fixes it.
The 5s is noticeably lighter than the 5c....as a runner it's big deal!
AppleInsider: publishers of "channel checks" and articles criticizing "channel checks."
Somebody's not very consistent.
Fool on your for believing the hype!
No one knows if Apple had this planned or not... "Make as many 5c's as we can until we can ramp up production of the 5s. Then stop producing so many 5c's." Makes perfect business sense.
I don't think Tim Cook is the type of guy that likes to have too much excess stock sitting on the shelves.
... or maybe I read your statement wrong.
I'll tell you what touch ID is worth it alone. The 64-bit architecture is very fast, some apps do crash, but overall I love this phone. It just feels solid. And the camera is actually quite good.
Most minds except Tim Cook - who sees plastic as an opportunity to increase margins rather than be more competitive on price.
If true this is obviously mixed news - neither of which I find surprising. The 5s is an amazing device and it's no surprise it's selling so well. I just wish they'd get mine delivered.
Reducing production of the 5c is a disappointing response. Knock $100 off the price and they would fly off the shelves.
= people hooked on iDevices = revenues to iTunes content and apps down the line.
The 5s is noticeably lighter than the 5c....as a runner it's big deal!
The weight difference is that the 5c is 0.70 of an ounce or 20 grams heavier than the 5s. To a world class runner that might make a huge difference but for normal people not so much.
Sadly this is now true. There was a time in life where the Wall Street Journal was well respected, now it isn't any better that a rumors site.