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Apple CEO Tim Cook makes an rare admission to a "miscalculation" on product mix

When Apple released its earnings report for fiscal Q1 2014 this afternoon, the company “missed” analysts’ expectations for iPhones sales. Analysts were expecting that Apple would sell 55 million iPhones during the quarter, yet the Cupertino, California-based hardware/software giant only sold 51 million iPhones.
 
Part of the shortfall in the numbers could come from the fact that Apple misjudged demand for the budget iPhone 5C. During the company’s earnings call this afternoon, Apple CEO Tim Cook admitted, “It was the first time we ever ran that play, and demand percentage turned out to be different than we thought.”


iPhone 5C
 
In this case, many customers weren’t too impressed with the “new” iPhone 5C and had no problems forking over an extra $100 to step into a more advanced iPhone 5S. "The mix was stronger to the 5S, and it took us some amount of time to build the mix that customers were demanding.”
 
Apple’s strategy with the iPhone 5C was slightly different than in years past. Before the iPhone 5C, Apple would traditionally introduce a brand new generation of iPhone at the $199 price point (on contract), and simply discount the previous generation model to $99 (on contract).


iPhone 5S
 
However, with the launch of the iPhone 5S, Apple took things a step further. Apple discontinued the previous generation iPhone 5 and introduced the iPhone 5C, which was essentially the iPhone 5 in a candy-coated plastic shell. Apple hoped that the colorful plastic shell would distract customers from the fact that this was just a warmed over iPhone 5.
 
In fact, Apple was so confident in its ability to “read” its customers that when the iPhone 5C and iPhone 5S were launched last year, it was the cheaper iPhone 5C that got the most prominent real estate on Apple’s website and the bulk of Apple’s attention in TV spots.

 
As for why he thinks customers are actually flocking to the iPhone 5S instead, Cook says it’s because of Touch ID. “It's a major feature that has excited people. And I think that, associated with the other things that are unique to the 5S, got the 5S to have a significant amount more attention and a higher mix of sales."

Source: Apple



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iso 7 is a joke
By SPOOOK on 1/27/2014 9:42:32 PM , Rating: 0
ios 7 is the worst o/s they ever had my ipad crash cant get settings keeps crashes to desktop
have to power down till next crash they know from september that this ios 7 crash and still cant fix it I got rid of my iPhone 4 what a lemon old outdated slow too small useless I now have a Samsung and very happy you can only fool people so long




RE: iso 7 is a joke
By Brandon Hill (blog) on 1/27/2014 9:47:44 PM , Rating: 5
Here's a guaranteed way to make your iPad crash in iOS 7:

Go to Settings, tap on Wallpapers and Brightness. Tap it once more. Instant crash to Home Screen.


RE: iso 7 is a joke
By luv2liv on 1/27/2014 10:09:36 PM , Rating: 2
want your istuff to work great forever? never update!
my ipod touch was working great until i updated the OS. never again. im not buying a new igadget every year just cause apple is promising something better when it was working fine


RE: iso 7 is a joke
By inighthawki on 1/28/2014 12:55:02 AM , Rating: 2
Not true! If your iDevice starts with iOS7, you're screwed!


RE: iso 7 is a joke
By slow_excellence on 1/28/2014 10:32:02 AM , Rating: 2
Still running IOS 4.2.3 on my ipod touch, works like a charm!


RE: iso 7 is a joke
By kmmatney on 1/27/2014 10:13:08 PM , Rating: 2
I haven't had any crashes on my iPad 4, but I think iOS 7 is just plain ugly. Aesthetically, it was a big downgrade for me.


RE: iso 7 is a joke
By Nutzo on 1/28/2014 12:50:02 PM , Rating: 2
So Apple is copying Microsoft again?


RE: iso 7 is a joke
By Tunnah on 1/27/2014 10:27:47 PM , Rating: 3
Either you had a stroke whilst writing this post or I had one just before I read it because I can't make heads nor tails of your gobbildy-grammar


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