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11-12-2013, 12:47 AM #1
Apple's iPhone 5C Orders rumored to be cut as Pegatron's Profits Disappoint
Pressure on iPhone 5C margins and rumors of alleged order cuts for Apple’s new plastic-backed handset have caused concerns for Pegatron, whose revenues were pushed last quarter due to the device. Pegatron reported lower-than-expected third-quarter net profit recently as costs associated with the ramp-up in production of the iPhone 5C affected the company’s bottom line. For those of you who didn’t already know, although Foxconn has been Apple’s primary assembly partner for years, Pegatron has nudged its way in with contract to build both the iPhone 5C and the iPad mini.
Two different major news organizations which were reporting on Pegatron’s earnings both cited unnamed sources as saying that Apple has cut orders for the iPhone 5C. The new plastic iPhone model as supposedly seen “weak sales” since its launch in September, according to The Wall Street Journal, which has apparently led Apple to raise orders of the iPhone 5S through assembly partner Foxconn. Separately, Reuters also reported that Pegatron has been affected by “order cutbacks” for the iPhone 5C. The alleged reductions were prompted by “less-than-stellar sales,” the report said, and have left market watchers concerned about Pegatron’s prospects for the end of 2013.
News of weak iPhone 5C sales aren’t new, though it’s possible that order revisions through Pegatron could have another explanation. It was previously reported that Apple is actually adding new suppliers for both the iPhone 5C and iPad mini to boost production in 2014. Specifically, Taiwan-based contract manufacturer Wistron and Compal Communications are expected to join Foxconn and Pegatron has assemblers.
Speculation regarding iPhone 5C sales are partially driven by the fact that Apple hasn’t broke down sales figures for specific models, citing competitive reasons. The iPhone 5C and iPhone 5S both went on sale the same day in September and reached sales of 9 million units in their first three days of availability. Some market watchers believe the success of Apple’s iPhone 5C lies in the long run, as early adopters are more likely to buy Apple’s flagship iPhone 5S. The belief is that casual smartphone buyers, who may not feel a need to upgrade as soon as Apple launches a new handset, will be drawn to the five color options available in the iPhone 5C lineup.
Source: Reuters, The Wall Street Journal
11-12-2013, 07:20 AM #2
11-12-2013, 10:40 AM #3
11-12-2013, 10:55 AM #4
I agree on both fronts. GREED can be good but in this case it was/is not. Same with the pricing of the iPad 2. We all know you could pick up the iPad 3 for the same price a year back. Like a slap in the face buying something even older for the same price. 5C is HEAVY other than that..its the 5 rehashed with colors. Hopefully the iPhone 6 is a crowd pleaser or Apple will be leaving the doors wide open for another Android onslaught.
11-12-2013, 11:07 AM #5
I'm thinking they went this route not for their hardware, but for the software. iOS 7 was considered a HUGE update. A complete over haul of the software that many had known and gotten used to. I think apple did this because the buzz was going to be so big on the new software, they wanted anyone and everyone to be able to afford any type of apple device (5s or 5c or even the 5 since they still had them in stock) to see what everyone was talking about. Just my theory.
11-12-2013, 01:49 PM #6
Here's my theory and it's just a theory but ....
The IPhone 4S is Apple's new budget phone because they have got plenty of them as returns / re-con units so they can re hash them as 8Gb units, but they could not make the 5 the budget alternative because they have had very few returns thus almost no stock to re hash with only 8Gb of ram.
Also the 4S represents the older design where the 5 is almost identical to the 5S and they did not want to "cheapen" the 5 series of phones so the budget alternative had to be the 4 series.
I also believe that Apple are making all of their new ranges of kit 64 bit so that when IOS 8 drops next year it will be a 64bit only firmware so with the 5 out of the way the 5S & 5C and the new 6 (next year) will all be 64 bit and Apple will be able to claim that the only logical way to go was 64 bit only as everything below the 5S / C has been discontinued. I would not be surprised to see the Ipad mini 1 discontinued and the IPod Touch to get a 64bit makeover soon as well as they will be the only current device that run IOS that's not 64 bit.
11-12-2013, 03:12 PM #7
I think its Karma here
Steve Jobs hated IBM because they were greedy and resisted change. Now Apple has grown into a greedy at times uncaring company, Tried to repackage Iphone 5 into the 5c with super ugly colors ( its like Apple is color blind)
Then they need to get x amount of profit
its not working! The new article out is Iphone is only 13% of phone market with Android as 80%
If Apple would change and lower the price of the 5c to what Walmart is selling it for 2 year contract and lower the outright price by some (25 to 30% ) then they could and would increase the market share.
For the nay sayers market share is more important than only selling to rich people, Apple cannot continue to survive on only the rich there are fewer everyday!
11-12-2013, 04:59 PM #8
I haven't seen one 5C yet in anyone's hands....
Saw 2 5S'
11-12-2013, 06:22 PM #9
11-13-2013, 08:00 AM #10