Apple Goofed on iPhone 5C Projections, Demand Was “Different than we thought"
January 27, 2014 8:42 PM
comment(s) - last by
Apple CEO Tim Cook makes an rare admission to a "miscalculation" on product mix
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.”
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).
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
. “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."
This article is over a month old, voting and posting comments is disabled
RE: iso 7 is a joke
1/27/2014 9:47:44 PM
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.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
Apple Announces Fiscal Q1 Profit of $13.1B, Sells 51M iPhones, 26M iPads
January 27, 2014, 4:51 PM
IPhone Fingerprint Sensor Cracked, Researchers Call Tech "Plain Stupid"
September 23, 2013, 1:01 PM
Apple Announces $99 iPhone 5C, iPhone 5S with 64-bit A7 Processor and "Touch ID"
September 10, 2013, 1:15 PM
Buoyed by Strong iPhone Sales, Apple Reports Revenue of $42.1B, $8.5B in Profit for Fiscal Q4
October 20, 2014, 5:21 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
OnePlus to Open Pre-orders on October 27
October 20, 2014, 1:34 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Quick Note: Android Gmail App to Gain Yahoo, Outlook Account Support
October 20, 2014, 9:15 AM
Forbes: Microsoft's Smartwatch to Launch Next Month
October 20, 2014, 8:36 AM
Most Popular Articles
Google Announces Android 5.0 “Lollipop”, Nexus 9 Tablet, and Nexus 6 “Phablet”
October 15, 2014, 12:41 PM
Cool Science Video of the Day: Carnivorous Leech Eats Giant Jungle Worm
October 16, 2014, 6:44 PM
Oops! Apple Outs iPad mini 3, iPad Air 2 via iTunes Store
October 15, 2014, 1:32 PM
HBO, CBS Lead Charge to Ditch Cable
October 16, 2014, 4:40 PM
Google Offers $99 Nexus Player w/$40 Controller for Android Set-Top Streaming, Gaming
October 15, 2014, 3:01 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information