If the 5C is not a flagship phone you haven't seen the ones from the competition.
The 5c is basically the 5. Apple put it on preorder to get folks that want the 5 out of lines so stores can focus on the real flagship, the 5S. There will be more questions with the whole touch id etc plus the trade in thing will make many transactions longer so anything they can cut out is good. The touch id etc gives them a reason to want folks to buy in person, so they can make sure it's set up right and folks understand how it works and don't crowd the Genius Bar with user errors. Thus the 5s doesn't get preorders like the 5c
Apple might have partially dealt with that by shipping "sample" phones to all its stores, but it's never done that before, so it may not even have occurred to the decision makers.
Oh it has. They don't do it because it's a security risk.
Yes you can. The Mac mini has good margins which is cheap compared to an iMac. A MacBook was cheap compared to a MBP. The iPod nanos have always had good margins.
Wall Street wasn't looking for a cheap iPhone with low margins. They were looking for a iPhone which would be competitive in the mid-tier smartphone market, providing Apple with growth by entering a new segment.
Why do people assume that any price lower than the one Apple sets = cheap? Isn't there ever a possibility that Apple could get pricing wrong? I mean its not like they haven't lowered prices on products in the past.
Nothing to worry about. They now have two lines of iPhones and they want to announce it together. If they announced how popular or unpopular the 5c is, the 5s launch could be altered so they are hanging in there until the dust settles.
It doesn't matter to "investors" what the numbers are anyway. The shorts will say it's not enough to drive down the stock and analysts will always find a way to manipulate. Apple is doomed whether they announce or don't announce. I wish the SEC would announce plans to investigate all these manipulators. That would dive the stock up!
You have cause and effect reversed. People sell a stock short when the general sentiment is that the stock's price will drop. There's no secret chatroom where the short sellers can flood the message board to spook other investors. There's also no way that enough people are shorting Apple's stock to drive down the price. The vast majority of shares are held by institutional investors like pension funds or life insurance companies. They are the only single entities with enough share holdings to make a difference in the stock price singlehandedly. Individual investors, even the sleaziest ones, have no power to move the share price. Hundreds of large individual investors would have to collude, and that isn't happening because those same investors are too busy managing the millions of dollars worth of other securities they own.
And yet, you can reserve a 5S days in advance for the China launch, so it would seem they feel there's enough stock there, just not the rest of the world.
I'm guessing they're doing reservations in China to keep the scalper riots to a minimum.
The preorder for China is to avoid riots and scalping that has happened in the past. It's just an automated system to get a number for pickup and to validate the user. Different thing entirely.
Yes you can. The Mac mini has good margins which is cheap compared to an iMac. A MacBook was cheap compared to a MBP. The iPod nanos have always had good margins.
Wall Street wasn't looking for a cheap iPhone with low margins. They were looking for a iPhone which would be competitive in the mid-tier smartphone market, providing Apple with growth by entering a new segment.
Granted you can make good margins on a cheaper product. However if you make 50% margins on a phone costing £100 to make you have made £50 profit. If you make 50% margins on a phone that cost £300 to make you have made £150 profit. Therefore you would have to sell 3 times the number of the cheaper phone to make the same profit.
<span style="line-height:1.4em;">You have cause and effect reversed. People sell a stock short when the general sentiment is that the stock's price will drop. There's no secret chatroom where the short sellers can flood the message board to spook other investors. There's also no way that enough people are shorting Apple's stock to drive down the price. The vast majority of shares are held by institutional investors like pension funds or life insurance companies. They are the only single entities with enough share holdings to make a difference in the stock price singlehandedly. Individual investors, even the sleaziest ones, have no power to move the share price. Hundreds of large individual investors would have to collude, and that isn't happening because those same investors are too busy managing the millions of dollars worth of other securities they own.</span>
Except for one thing. When the shorts get active and spread FUD, it's precisely the institutional investors who sell. So, yes, active short activity DOES drive the price down.
Apple has far too high a percentage of its stock owned by institutions and should be encouraging individual ownership. A 10:1 split would be very helpful right now.
Am I losing my mind? The 5c is basically 5 with different "clothes." Why in the world would they sell like a new model? To me that is a non-story as the issue is the 5S.
Frankly I have my doubts about the 5S, but that should be the focus, not how a 1 year old phone being re-released in different colors sells. As for the 5S, it will simply be impossible to match last years sales of the 5 if they arent taking orders online. I thought $450-460 would be the short term bottom, but looking more like $400 is going to be here by this time next week when they announce sales of the 5S.
Get ready for some more pain in the stock price, going to get ugly.
Ummm this is obviously happening since we must now use our full 2yr contracts before we get the best deal, unlike with early iPhones. At least with ATT.
Granted you can make good margins on a cheaper product. However if you make 50% margins on a phone costing £100 to make you have made £50 profit. If you make 50% margins on a phone that cost £300 to make you have made £150 profit. Therefore you would have to sell 3 times the number of the cheaper phone to make the same profit.
Maybe, "if" Apple were just selling phones, but they're not. They also sell applecare, accessories, music, videos, apps, cloud services and other iDevices. If the reduced margin phone is attracting new customers to the ecosystem then given Apples unprecedented customer retention ratio, the loss of profit may not be as obvious.
for geeks yes but not the general public. I know many people who have moved from one platform to the other. I don't think platform loyalty between iOS and Android is anywhere near as strong as OSX and Windows.
The reasons behind the loyalties are different. With OSX vs Windows it was "My company is standardized on WIndows so I have to get the same for home (said with a whine)."
With iOS vs Android, it's more like Apple haters vs Apple lovers.
And yet, you can reserve a 5S days in advance for the China launch, so it would seem they feel there's enough stock there, just not the rest of the world.
The China preorder program is meant to deter rioting and scalping which was a problem last year in the queues, resulting in injuries and property damage.
I think I need to just stop reading stock sites for a month or two. It's too stressful being an AAPL shareholder and watching people constantly freak out.
Company insane amounts of profit, has more cash than it knows what to do with -- investors ready to jump ship at the slightest rumor.
And yet, you can reserve a 5S days in advance for the China launch, so it would seem they feel there's enough stock there, just not the rest of the world.
The 5s is available to preorder in China to prevent the riots that happened when the 5 was launched.
Comments
The 5c is basically the 5. Apple put it on preorder to get folks that want the 5 out of lines so stores can focus on the real flagship, the 5S. There will be more questions with the whole touch id etc plus the trade in thing will make many transactions longer so anything they can cut out is good. The touch id etc gives them a reason to want folks to buy in person, so they can make sure it's set up right and folks understand how it works and don't crowd the Genius Bar with user errors. Thus the 5s doesn't get preorders like the 5c
Oh it has. They don't do it because it's a security risk.
If Apple is going to be profitable, wouldn't you want to buy, not sell??
The stock is trading pretty low at $454...how low do you think it's going to go?
Investors always worry in the sake of worry .
Nothing to worry about. They now have two lines of iPhones and they want to announce it together. If they announced how popular or unpopular the 5c is, the 5s launch could be altered so they are hanging in there until the dust settles.
It doesn't matter to "investors" what the numbers are anyway. The shorts will say it's not enough to drive down the stock and analysts will always find a way to manipulate. Apple is doomed whether they announce or don't announce. I wish the SEC would announce plans to investigate all these manipulators. That would dive the stock up!
You have cause and effect reversed. People sell a stock short when the general sentiment is that the stock's price will drop. There's no secret chatroom where the short sellers can flood the message board to spook other investors. There's also no way that enough people are shorting Apple's stock to drive down the price. The vast majority of shares are held by institutional investors like pension funds or life insurance companies. They are the only single entities with enough share holdings to make a difference in the stock price singlehandedly. Individual investors, even the sleaziest ones, have no power to move the share price. Hundreds of large individual investors would have to collude, and that isn't happening because those same investors are too busy managing the millions of dollars worth of other securities they own.
And yet, you can reserve a 5S days in advance for the China launch, so it would seem they feel there's enough stock there, just not the rest of the world.
I'm guessing they're doing reservations in China to keep the scalper riots to a minimum.
The preorder for China is to avoid riots and scalping that has happened in the past. It's just an automated system to get a number for pickup and to validate the user. Different thing entirely.
Granted you can make good margins on a cheaper product. However if you make 50% margins on a phone costing £100 to make you have made £50 profit. If you make 50% margins on a phone that cost £300 to make you have made £150 profit. Therefore you would have to sell 3 times the number of the cheaper phone to make the same profit.
Except for one thing. When the shorts get active and spread FUD, it's precisely the institutional investors who sell. So, yes, active short activity DOES drive the price down.
Apple has far too high a percentage of its stock owned by institutions and should be encouraging individual ownership. A 10:1 split would be very helpful right now.
Am I losing my mind? The 5c is basically 5 with different "clothes." Why in the world would they sell like a new model? To me that is a non-story as the issue is the 5S.
Frankly I have my doubts about the 5S, but that should be the focus, not how a 1 year old phone being re-released in different colors sells. As for the 5S, it will simply be impossible to match last years sales of the 5 if they arent taking orders online. I thought $450-460 would be the short term bottom, but looking more like $400 is going to be here by this time next week when they announce sales of the 5S.
Get ready for some more pain in the stock price, going to get ugly.
Granted you can make good margins on a cheaper product. However if you make 50% margins on a phone costing £100 to make you have made £50 profit. If you make 50% margins on a phone that cost £300 to make you have made £150 profit. Therefore you would have to sell 3 times the number of the cheaper phone to make the same profit.
Maybe, "if" Apple were just selling phones, but they're not. They also sell applecare, accessories, music, videos, apps, cloud services and other iDevices. If the reduced margin phone is attracting new customers to the ecosystem then given Apples unprecedented customer retention ratio, the loss of profit may not be as obvious.
The reasons behind the loyalties are different. With OSX vs Windows it was "My company is standardized on WIndows so I have to get the same for home (said with a whine)."
With iOS vs Android, it's more like Apple haters vs Apple lovers.
And yet, you can reserve a 5S days in advance for the China launch, so it would seem they feel there's enough stock there, just not the rest of the world.
The China preorder program is meant to deter rioting and scalping which was a problem last year in the queues, resulting in injuries and property damage.
I think I need to just stop reading stock sites for a month or two. It's too stressful being an AAPL shareholder and watching people constantly freak out.
Company insane amounts of profit, has more cash than it knows what to do with -- investors ready to jump ship at the slightest rumor.
Here we go again…
The 5s is available to preorder in China to prevent the riots that happened when the 5 was launched.