Weaker than expected iPhone 5c sales may trigger China Mobile renegotiation
Sales of Apple's less-expensive iPhone 5c may be holding up an anticipated China Mobile deal, says KGI analyst Ming-Chi Kuo, but negotiations are likely nearing an end point.

According to a research note obtained by AppleInsider, Kuo believes the much-rumored China Mobile partnership will generate 15 to 20 million iPhone unit shipments in 2014, which will jump to 20 to 30 million the year following. The analyst notes, however, that the actual numbers depend on Apple's strategy in midrange and low-end products.
"We believe that weak sales of iPhone 5C may trigger a re-negotiation of the Apple-China Mobile partnership," Kuo writes. "However, the indications are that the deal is nearing an end. While recent market speculation calls for the deal to boost 1Q14 iPhone shipments to 45-50mn units, we think this is overly optimistic."
As such, Kuo maintains his first quarter forecast of 38 million units worldwide.
The analyst's latest surveys indicate that demand for a TD-LTE version of the iPhone 5c, which is compatible with China Mobile's unique 4G network infrastructure, has declined "dramatically" over the past weeks. Subscribers are now focused on the more expensive iPhone 5s, Kuo says.
Due to the swing in demand, Kuo pegs TD-LTE iPhone 5c shipments at 1.0 to 1.5 million units in the fourth quarter of 2013 and under one million for the first quarter of 2014. This is apparently well below Apple's original production plan and would possibly require a renegotiation with the world's largest wireless provider.
The brokering may be what is holding up an Apple-China Mobile partnership many see as a foregone conclusion. For its part, the telecom acknowledged it is in talks with Apple over the iPhone, but has repeatedly denied rumors of an imminent finalization.

According to a research note obtained by AppleInsider, Kuo believes the much-rumored China Mobile partnership will generate 15 to 20 million iPhone unit shipments in 2014, which will jump to 20 to 30 million the year following. The analyst notes, however, that the actual numbers depend on Apple's strategy in midrange and low-end products.
"We believe that weak sales of iPhone 5C may trigger a re-negotiation of the Apple-China Mobile partnership," Kuo writes. "However, the indications are that the deal is nearing an end. While recent market speculation calls for the deal to boost 1Q14 iPhone shipments to 45-50mn units, we think this is overly optimistic."
As such, Kuo maintains his first quarter forecast of 38 million units worldwide.
The analyst's latest surveys indicate that demand for a TD-LTE version of the iPhone 5c, which is compatible with China Mobile's unique 4G network infrastructure, has declined "dramatically" over the past weeks. Subscribers are now focused on the more expensive iPhone 5s, Kuo says.
Due to the swing in demand, Kuo pegs TD-LTE iPhone 5c shipments at 1.0 to 1.5 million units in the fourth quarter of 2013 and under one million for the first quarter of 2014. This is apparently well below Apple's original production plan and would possibly require a renegotiation with the world's largest wireless provider.
The brokering may be what is holding up an Apple-China Mobile partnership many see as a foregone conclusion. For its part, the telecom acknowledged it is in talks with Apple over the iPhone, but has repeatedly denied rumors of an imminent finalization.
Comments
But instead of embracing the obvious they double down on the ridiculous.
To analysts:
5C selling well around the world! Way better than the 4S it replaced!
From my view this prolonged negotiation is more of a psychological tactic to get Apple to cave in to whatever demands they are making.
For one reason, it is not that C (cheap) at all. Even if it was, there is no way to compete with China brands' Andriod phone. At a price tag of US$150-200, they can be technically / in specification as compatible as a Samsung S4.
Going cheap does not work in gaining China market share but the opposite case does....
Then the story talks about selling more 5s models - why wouldn't that be the headline.
After being burnt already about speculating on the 5c you would of thought the rumour mill would hold judgement. Perhaps a risky move to attempt credibility.
are all so specific, like "36,146" for the first entry. If you're
taking wild guesses like this, why not just call it 36,000?
Source?
"Shipped"
You just made AppleInsider cry.
It's a shame that Apple can't do anything about this sort of rampant speculation. Apple has far too many analysts following the company and I think they're doing it just to make names for themselves.
Well that's what you get for releasing crappy plastics fone! Apple not inovate any more
Samsung Rulz!
Amazing. These analysts were foolishly wrong about the 5C, which is a more obvious success every day.
But instead of embracing the obvious they double down on the ridiculous.
To analysts:
5C selling well around the world! Way better than the 4S it replaced!
5C selling well? That cause all Apple fans are stupid!
Samsung Rulz!
Buy Samsung Note 3. It blew away crappy iPhon 5S. Big screen and stilus make crappy Apple fone look like toy
Samsung Rulz!
The launch of its competitor the Motorola G built using a theoretically more expensive quad core and next gen FAB process really shows what underlying profit may be lurking.
I'm sure China Mobile will accept a bit of profit for itself here.
Get the feeling someone might might like to see Apple to be down today?