On the earnings call one of the analysts asked why there was such a big drawdown on the channel for iPhone and iPod, and Tim hemmed and hawed and didn't really answer the question - maybe they are prepping for the new model.
Ok what you guys are failing to see are the forest for the trees;
Let me explain, I still am using my iPhone 4 for several years now since it was released I was the crazy geek guy on line at the apple store waiting in line over night with my beach chair in SOHO NYC -
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted?? Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!! Apple knows they have a lemon so they aren't commissioning FOXCONN to build anymore and they are coming out with an improvement and that's the model I will get!! FYI
[quote name="bitzandbitez" url="/t/158682/rumor-apple-to-drop-iphone-5-in-favor-of-iphone-5s-and-iphone-lite/40#post_2367465"]APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it[/QUOTE]
Stop the FUD; I want to get off. Seriously.
[QUOTE] why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??[/QUOTE]
Because we're two months from the launch of the new one.
[QUOTE]Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!![/QUOTE]
Not really, but that's probably me. Do you have any proof that actually happened?
Yeah, I did, see. Except there's nothing in your article that proves anything. IN FACT THE ARTICLE SPECIFICALLY HAS A LINK TO FOXCONN'S DENIAL THEREOF.
So maybe before insulting me you could do what you demand of others.
And my iPhone 4 still runs circles around every iPhone 5 user I know
Battery life in the iPhone 5 is fine, and having access to the faster LTE data makes the phone way better. It is thinner, with a bigger screen, cooler looking, etc.
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??
Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!!
Apple knows they have a lemon so they aren't commissioning FOXCONN to build anymore and they are coming out with an improvement and that's the model I will get!! FYI
That is nuts. I too am using an iPhone 4. My long time girlfriend has an iPhone 5 that I use regularly. The iPhone 5 is the best phone I have ever touched. It is incredibly light, super fast in terms of processing power and data speeds, and beautiful to hold. I do not notice any difference in battery life UNLESS you do not manage carrier data settings. The iPhone 4 does not use LTE or 4G, whereas the iPhone 5 does. LTE uses more battery use.
Moreover, my 3GS (also still in use) has better reception than the iPhone 4. The antenna is much improved in the iPhone 5 over the iPhone 4.
Apple allegedly returned phones to Foxconn because Foxconn was shipping them to Apple with defects in the paint.
That price would do away with the iPod Touch, but they may be trying to do that.
I don't think they would go that low only because they want to be seen as at least a somewhat high end brand. $350 off contract is my guess. It's still $100 lower than the 4, it would give them a high enough margin, and they could say it's worth the cost because of the added benefit over the older models of either how much lighter or slimmer it is.
I think you may be right. It seems I mixed up my numbers quite a bit there. I'm going to blame it on the heat wave.
@paul94544>; "This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell!"
1) Why would they have millions of iPhone 5's sitting on the shelves if they stop making them?
2) Why would they be unable to sell them? Apple is still selling iPhone4S and iPhone 4 by the millions even today?
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline"
This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline." This isn't their first time selling the iPhone, they know the trend of sales and can prepare for it...
This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ
What are you on about? This isn't nonsense in the least. This move makes perfect sense for a variety of reasons:
First, it allows them to remove iPhone 4S from production earlier and ensure that all new sales have hardware inside that's using a 4" display and the A6 processor, and the plastic iPhone will be cheaper to produce than the 4S as well.
Additionally, a lot of consumers in subsidized markets passed on the iPhone 5 to get the cheaper 4 or 4S because they wanted an iPhone with premium build quality. The specs advantage of the iPhone 5 wasn't a salient feature. Now they have to make a harder choice between a plastic iPhone with last year's specs vs. an aluminum iPhone with this year's.
The excess iPhone 5's that were produced will more than likely be sold at some price between the going rate of the plastic iPhone and the 5S until the inventory is depleted.
In any event, your concern that excess iPhones will be stuck in the supply chain is a minor concern for Apple compared to the need to improve margins at the low end while also encouraging a greater % of consumers to buy the 5S rather than it's identical-looking but cheaper brother (iPhone 5).
The guy "with the 80 IQ" who came up with this is Tim Cook (or at the very least it was his decision to make in the end). And it's the perfectly logical move for Apple to make. I predicted this was their plan late last year when it became clear that Apple's margins were being crimped by the iPhone 4 & 4S cannibalizing iPhone 5 sales more than expected.
This makes sense if there is no new WOW feature or differentiator in the 5S versus the 5. The fingerprint sensor tech is significant if that's in there, but that's even more reason to drop the 5 since it doesn't have that. And if the new mid-priced iPhone also has that fingerprint sensor, then they would definitely drop the 5. Slimming down the iPhone line to just two models, each with a range of storage options (as smartly suggested by the poster "drewyboy", above, meaning not only the 4, but the 4S would be out) would have several big advantages. First, the fingerprint sensor could go in both new models allowing Apple to advertise the iPhone as being super secure without getting backlash from people complaining that the less wealthy folks out there somehow don't deserve tight security. Second, Apple could focus its economies of scale in both part sourcing and manufacturing around a common display size since the same 4" display would be used in the 5S, the mid-priced iPhone, and the latest generation iPod Touch. And all would also employ a similar sized case, meaning the battery form factor and other internal components could be designed for all three devices (with perhaps only a slimmer battery for the iPod Touch versus the two iPhones). Gone would be the two iPhone 4x models. Dumping both at the same time makes sense versus keeping the 4S around as the only 3.5" display device (economies of scale again). I'm thinking this is a great plan by Apple.
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline." This isn't their first time selling the iPhone, they know the trend of sales and can prepare for it...
Only one month, actually - they shipped 31.2 million iPhones last quarter, and have 11 million (4 weeks) inventory in the channel.
It was probably because in previous years the cannibalization of the latest iPhone wasn't nearly as significant as it has become since the iPhone 5 came out, so making the effort to develop a plastic phone wasn't worth the cost. Making the move when the 5S is released lets Apple rid themselves of the iPhone 4/4S body of phones altogether and the 30-pin connectors for all future sales.
Also, with the iPhone 5 already being extremely fast and having LTE, Apple probably is concerned that cannibalization will be even worse this time around. The 5S is likely to pack internal spec upgrades, and perhaps a fingerprint sensor, but for many an iPhone 5 at $100 would certainly be good enough. Now the step-down product is a plastic phone...
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??
Having upgraded from an iPhone 4 to the 5 last year, I found the battery life of the 5 to be slightly better than the 4 with heavy use, and much better than the 4 with moderate use, or when connected to LTE and browsing the internet. The CDMA iPhone 4 I had needed to expend much more power loading websites with its slower connection -- Anandtech's testing showed that the iPhone 5 consumes much less power than both the 4 & 4S when doing the same amount of work because it fall into its lower power mode much faster.
The only significant issues iPhone 5 had out of the gate were production issues with the anodization process, which were fixed by November. There's nothing wrong with the internals of the device, or its battery. In fact, the plastic iPhone will almost certainly use the exact same internal specs as the iPhone 5, in order to minimize hardware variance for developers.
The reason the 5 has been discounted on occasion has been because sales can sweep up price-sensitive consumers who otherwise wouldn't have bought the phone, and getting any extra money for the 5 vs. the 4S or 4 (which many may have bought in the alternative) is worthwhile because the difference in production cost is minimal. In fact, some have speculated that the 4S is now more costly to produce than the 5 thanks to its extra glass, while the SoC and modem cost differences are minimal.
Comments
On the earnings call one of the analysts asked why there was such a big drawdown on the channel for iPhone and iPod, and Tim hemmed and hawed and didn't really answer the question - maybe they are prepping for the new model.
Let me explain, I still am using my iPhone 4 for several years now since it was released I was the crazy geek guy on line at the apple store waiting in line over night with my beach chair in SOHO NYC -
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??
Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!!
Apple knows they have a lemon so they aren't commissioning FOXCONN to build anymore and they are coming out with an improvement and that's the model I will get!! FYI
Stop the FUD; I want to get off. Seriously.
[QUOTE] why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??[/QUOTE]
Because we're two months from the launch of the new one.
[QUOTE]Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!![/QUOTE]
Not really, but that's probably me. Do you have any proof that actually happened?
http://www.cultofmac.com/224383/foxconn-could-take-up-to-1-6b-hit-as-apple-rejects-5-8-million-defective-iphones-report/
Yeah, I did, see. Except there's nothing in your article that proves anything. IN FACT THE ARTICLE SPECIFICALLY HAS A LINK TO FOXCONN'S DENIAL THEREOF.
So maybe before insulting me you could do what you demand of others.
Quote:
Originally Posted by bitzandbitez
And my iPhone 4 still runs circles around every iPhone 5 user I know
Battery life in the iPhone 5 is fine, and having access to the faster LTE data makes the phone way better. It is thinner, with a bigger screen, cooler looking, etc.
Quote:
Originally Posted by jd_in_sb
Apple could simply sell the iPhone 5 at a discount until the pipeline and shelves are cleared. They have done this with other products.
Yes, like that is hard to understand. I know somebody who would pick up one at a deal.
Quote:
Originally Posted by bitzandbitez
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??
Don't you remember when APPLE returned like over 5 million iPhone 5's back to FOXCONN (google it they reported on this site as well) these were defective units worth in the BILLION$!!
Apple knows they have a lemon so they aren't commissioning FOXCONN to build anymore and they are coming out with an improvement and that's the model I will get!! FYI
That is nuts. I too am using an iPhone 4. My long time girlfriend has an iPhone 5 that I use regularly. The iPhone 5 is the best phone I have ever touched. It is incredibly light, super fast in terms of processing power and data speeds, and beautiful to hold. I do not notice any difference in battery life UNLESS you do not manage carrier data settings. The iPhone 4 does not use LTE or 4G, whereas the iPhone 5 does. LTE uses more battery use.
Moreover, my 3GS (also still in use) has better reception than the iPhone 4. The antenna is much improved in the iPhone 5 over the iPhone 4.
Apple allegedly returned phones to Foxconn because Foxconn was shipping them to Apple with defects in the paint.
Quote:
Originally Posted by Irving Muller
That price would do away with the iPod Touch, but they may be trying to do that.
I don't think they would go that low only because they want to be seen as at least a somewhat high end brand. $350 off contract is my guess. It's still $100 lower than the 4, it would give them a high enough margin, and they could say it's worth the cost because of the added benefit over the older models of either how much lighter or slimmer it is.
I think you may be right. It seems I mixed up my numbers quite a bit there. I'm going to blame it on the heat wave.
1) Why would they have millions of iPhone 5's sitting on the shelves if they stop making them?
2) Why would they be unable to sell them? Apple is still selling iPhone4S and iPhone 4 by the millions even today?
Deleted
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline"
Quote:
Originally Posted by Paul94544
This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline." This isn't their first time selling the iPhone, they know the trend of sales and can prepare for it...
What are you on about? This isn't nonsense in the least. This move makes perfect sense for a variety of reasons:
First, it allows them to remove iPhone 4S from production earlier and ensure that all new sales have hardware inside that's using a 4" display and the A6 processor, and the plastic iPhone will be cheaper to produce than the 4S as well.
Additionally, a lot of consumers in subsidized markets passed on the iPhone 5 to get the cheaper 4 or 4S because they wanted an iPhone with premium build quality. The specs advantage of the iPhone 5 wasn't a salient feature. Now they have to make a harder choice between a plastic iPhone with last year's specs vs. an aluminum iPhone with this year's.
The excess iPhone 5's that were produced will more than likely be sold at some price between the going rate of the plastic iPhone and the 5S until the inventory is depleted.
In any event, your concern that excess iPhones will be stuck in the supply chain is a minor concern for Apple compared to the need to improve margins at the low end while also encouraging a greater % of consumers to buy the 5S rather than it's identical-looking but cheaper brother (iPhone 5).
The guy "with the 80 IQ" who came up with this is Tim Cook (or at the very least it was his decision to make in the end). And it's the perfectly logical move for Apple to make. I predicted this was their plan late last year when it became clear that Apple's margins were being crimped by the iPhone 4 & 4S cannibalizing iPhone 5 sales more than expected.
Quote:
Originally Posted by brad6788
Apple doesn't keep months and months worth of products in their pipeline. They have 2 months left to sell the 5, if they stop producing now they would run out by September. Apple typically keeps 6-8 weeks worth of supply in their "pipeline." This isn't their first time selling the iPhone, they know the trend of sales and can prepare for it...
Only one month, actually - they shipped 31.2 million iPhones last quarter, and have 11 million (4 weeks) inventory in the channel.
Quote:
Originally Posted by Tallest Skil
Because they weren't, probably.
It was probably because in previous years the cannibalization of the latest iPhone wasn't nearly as significant as it has become since the iPhone 5 came out, so making the effort to develop a plastic phone wasn't worth the cost. Making the move when the 5S is released lets Apple rid themselves of the iPhone 4/4S body of phones altogether and the 30-pin connectors for all future sales.
Also, with the iPhone 5 already being extremely fast and having LTE, Apple probably is concerned that cannibalization will be even worse this time around. The 5S is likely to pack internal spec upgrades, and perhaps a fingerprint sensor, but for many an iPhone 5 at $100 would certainly be good enough. Now the step-down product is a plastic phone...
Quote:
Originally Posted by bitzandbitez
And my iPhone 4 still runs circles around every iPhone 5 user I know - APPLE knows they got it screwed up with this model the battery just doesn't last enough not to mention all the other issues the 5 had out the gate - it's a flawed design and apple knows it - why do u think BESTBUY & RADIO SHACK and all the carriers are basically offering this model so discounted??
Having upgraded from an iPhone 4 to the 5 last year, I found the battery life of the 5 to be slightly better than the 4 with heavy use, and much better than the 4 with moderate use, or when connected to LTE and browsing the internet. The CDMA iPhone 4 I had needed to expend much more power loading websites with its slower connection -- Anandtech's testing showed that the iPhone 5 consumes much less power than both the 4 & 4S when doing the same amount of work because it fall into its lower power mode much faster.
The only significant issues iPhone 5 had out of the gate were production issues with the anodization process, which were fixed by November. There's nothing wrong with the internals of the device, or its battery. In fact, the plastic iPhone will almost certainly use the exact same internal specs as the iPhone 5, in order to minimize hardware variance for developers.
The reason the 5 has been discounted on occasion has been because sales can sweep up price-sensitive consumers who otherwise wouldn't have bought the phone, and getting any extra money for the 5 vs. the 4S or 4 (which many may have bought in the alternative) is worthwhile because the difference in production cost is minimal. In fact, some have speculated that the 4S is now more costly to produce than the 5 thanks to its extra glass, while the SoC and modem cost differences are minimal.