Actually, what it shows is that Apple customers want something that's better and are willing to pay more for it. Tim listened too much to the idiots on Wall Street, provided a quality phone that cost less, and gets reamed when people want to spend more. This helped Apple's bottom line and fantastic sales but Wall Street just doesn't get it.
For those people who want an iPhone for free, wake up and be willing to pay for what it's worth. If you want something free, get a Samsung phone and deal with it's lack of quality.
Pretty much. Apple has always said that it only makes sense to have a different price point if you have a different feature set. Jobs would always bring up the iPod shuffle to make that point. I think Cook has too. Aluminum vs. plastic isn't a meaningful choice. Presumably the mistake here was thinking they'd sell a bigger percentage of this "new" phone than if they'd sold last years phone, but they didn't.
This is something Apple can easily rectify. They can lower the price, they can change colors, or they can scrap it all together. They tried something and it apparently didn't work out the way they expected. Everyone who hated the idea of Apple building a plastic phone should be happy now because you probably won't see another one (other than the current 5C replacing the 4S when new phones come out).
If your flagship production is constrained by the process, machining and finishing, then it makes sense to look at alternatives that are less process intensive. In the case of the 5c, a few color changes in the mix (more muted) and a bit better pricing would have probably made a difference in sales.
Until we have an idea on how many were sold, it's hard to describe it as a failure. More than likely, almost any manufacturer but Samsung or Apple would have been happy with the sales volume, if not the ASP.
My opinion is that it was a necessary experiment, and, the data says that the Apple demographic prefers a premium build. So, Apple will go back to it's previous pattern of discounting previous models.
This is something Apple can easily rectify. They can lower the price, they can change colors, or they can scrap it all together. They tried something and it apparently didn't work out the way they expected. Everyone who hated the idea of Apple building a plastic phone should be happy now because you probably won't see another one (other than the current 5C replacing the 4S when new phones come out).
I agree. Come this fall, I think the 5c will stick around as the entry-level iPhone, and Apple will release two new iPhone 6 models - 4.7" & 5.5".
Apple believes that if they build it, the customers will come. This business model is inherently arrogant but clearly works when the company sets a high engineering/design bar. But no model/philosophy works 100% of the time. Just as Apple didn't hit a home run this one time, the "I told you so" crowd simply got lucky and guessed right for once.
Maybe so, but IMO a lot of the naysayers intuitively thought going back to plastic was a 'down grade' or at least not position correctly on price/market placement this time around. As soon as Sir Jon said he was unapologetic about the plastic... he was essentially being... apologetic. Next year lower the price once more and perhaps add in some 'mainstream' colors... I imagine it could do very well. AND offer a bigger screen... just that many more who prefer that. IMO, there is only so much more hardware tech that can be added to these devices anyways that would make it a 'must have that'. Just me, but I would like to see much enhanced Apple services/icloud etc than more hardware tech.
Also, the comparison to teh 4/4S is meaningless, because I am sure Apple sold a higher percentage of 5C's as a share of the total, than they did 4's as a share of the total when the 4S came out.
Well, it’s not meaningless, but I don’t think you’re wrong. Thing is, how do we know?
I like the 5c form factor. If it had identical internals to the 5s (including touch ID) I'd have seriously considered one. I'd have maybe preferred a different color selection though.
I suspect we'll be getting a 6c just like that (a 5s in plastic clothing).... but then I'll want the 6s, so, nothing really changes for me!
It doesn't mean the 5c "sucks". It's better than the original 5 was internally. Really it's only about the "shell", and IMO that wasn't the only reason the 5s did better than expected. The 5s is just that good! Who wouldn't pop for the extra $100 if they could?
51 million iPhones is 51 million iPhones. A new record, and honestly who cares if the 5c wasn't quite as "robust" as expected. It certainly didn't hold them back! Nor was it a "flop" if it ended up driving sales to the more premium device. Mhm... think about it...
I think the 5c would of done so much better in colored metal (iPod touch style). The plastic backed cheaper option I can't see continuing but if there were colored metal options without touch ID and sold at similar pricing to 5C I would have concided buying. Perhaps this option will be available 2014.
Cook declined to say what Apple is planning to do in the future with its mid-range, plastic-backed iPhone. However, the CEO did not rule out the possibility of making a change to its lineup down the road.
scrapping it would be a mistake. just lower the price by 100 dollars and see what happens. lower it another 50 later and roll up emerging markets.
Yeah, I think the way to go is make it the lowest priced model, not the mid-price. Whether it is cheap or not the plastic casing has to make it seem cheap. The increased margins seem like they would be worth pursuing at a different price point so when the 4S is retired the 5C might get more appealing…or it might not, but seems miscast as the mid-level entry.
Comments
I've seen as many people with Windows Phones as I have with 5c's
Actually, what it shows is that Apple customers want something that's better and are willing to pay more for it. Tim listened too much to the idiots on Wall Street, provided a quality phone that cost less, and gets reamed when people want to spend more. This helped Apple's bottom line and fantastic sales but Wall Street just doesn't get it.
For those people who want an iPhone for free, wake up and be willing to pay for what it's worth. If you want something free, get a Samsung phone and deal with it's lack of quality.
Pretty much. Apple has always said that it only makes sense to have a different price point if you have a different feature set. Jobs would always bring up the iPod shuffle to make that point. I think Cook has too. Aluminum vs. plastic isn't a meaningful choice. Presumably the mistake here was thinking they'd sell a bigger percentage of this "new" phone than if they'd sold last years phone, but they didn't.
If your flagship production is constrained by the process, machining and finishing, then it makes sense to look at alternatives that are less process intensive. In the case of the 5c, a few color changes in the mix (more muted) and a bit better pricing would have probably made a difference in sales.
Until we have an idea on how many were sold, it's hard to describe it as a failure. More than likely, almost any manufacturer but Samsung or Apple would have been happy with the sales volume, if not the ASP.
My opinion is that it was a necessary experiment, and, the data says that the Apple demographic prefers a premium build. So, Apple will go back to it's previous pattern of discounting previous models.
This is something Apple can easily rectify. They can lower the price, they can change colors, or they can scrap it all together. They tried something and it apparently didn't work out the way they expected. Everyone who hated the idea of Apple building a plastic phone should be happy now because you probably won't see another one (other than the current 5C replacing the 4S when new phones come out).
I agree. Come this fall, I think the 5c will stick around as the entry-level iPhone, and Apple will release two new iPhone 6 models - 4.7" & 5.5".
[SIZE=2](Sorry Sog, had to rag you just a little bit, all in fun)[/SIZE]
Apple believes that if they build it, the customers will come. This business model is inherently arrogant but clearly works when the company sets a high engineering/design bar. But no model/philosophy works 100% of the time. Just as Apple didn't hit a home run this one time, the "I told you so" crowd simply got lucky and guessed right for once.
Maybe so, but IMO a lot of the naysayers intuitively thought going back to plastic was a 'down grade' or at least not position correctly on price/market placement this time around. As soon as Sir Jon said he was unapologetic about the plastic... he was essentially being... apologetic. Next year lower the price once more and perhaps add in some 'mainstream' colors... I imagine it could do very well. AND offer a bigger screen... just that many more who prefer that. IMO, there is only so much more hardware tech that can be added to these devices anyways that would make it a 'must have that'. Just me, but I would like to see much enhanced Apple services/icloud etc than more hardware tech.
Also, the comparison to teh 4/4S is meaningless, because I am sure Apple sold a higher percentage of 5C's as a share of the total, than they did 4's as a share of the total when the 4S came out.
Well, it’s not meaningless, but I don’t think you’re wrong. Thing is, how do we know?
I like the 5c form factor. If it had identical internals to the 5s (including touch ID) I'd have seriously considered one. I'd have maybe preferred a different color selection though.
I suspect we'll be getting a 6c just like that (a 5s in plastic clothing).... but then I'll want the 6s, so, nothing really changes for me!
It doesn't mean the 5c "sucks". It's better than the original 5 was internally. Really it's only about the "shell", and IMO that wasn't the only reason the 5s did better than expected. The 5s is just that good! Who wouldn't pop for the extra $100 if they could?
51 million iPhones is 51 million iPhones. A new record, and honestly who cares if the 5c wasn't quite as "robust" as expected. It certainly didn't hold them back! Nor was it a "flop" if it ended up driving sales to the more premium device. Mhm... think about it...
Need a cheaper iPhone, my arse.
Cook declined to say what Apple is planning to do in the future with its mid-range, plastic-backed iPhone. However, the CEO did not rule out the possibility of making a change to its lineup down the road.
lower the price....
Well that's what you get for listening to Wall St, Jobs was right, ignore them they know jack shit about running a business like Apple.
Need a cheaper iPhone, my arse.
Except the cheap phone was not cheap... they tried to sell it at a premium price... fail
It wasn't cheaper than their previous cheap options ( ie last years model). In fact that was why the stick dropped on the announcement of the 5C.
scrapping it would be a mistake. just lower the price by 100 dollars and see what happens. lower it another 50 later and roll up emerging markets.
Yeah, I think the way to go is make it the lowest priced model, not the mid-price. Whether it is cheap or not the plastic casing has to make it seem cheap. The increased margins seem like they would be worth pursuing at a different price point so when the 4S is retired the 5C might get more appealing…or it might not, but seems miscast as the mid-level entry.
Except the cheap phone was not cheap... they tried to sell it at a premium price... fail
IT WAS NOT A CHEAP PHONE. IT WAS NOT MARKETED AS A CHEAP PHONE. IT WAS NOT SUPPOSED TO BE A CHEAP PHONE.
What, will we still be saying this a year later? Get it through your skulls. Come on.
Yeah that's what he said. The cheap phone wasn't cheap.
It just looked cheap.