Apple Goofed on iPhone 5C Projections, Demand Was “Different than we thought"
January 27, 2014 8:42 PM
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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."
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What Apple needed to have done
1/27/2014 10:42:15 PM
when launching a "budget" phone (which isn't even what they said they were releasing but, it was what they were doing)
They should have had the iPhone 5S, iPhone 5C and iPhone 4SC
The 5 should have been plastic and the 5S metal or whatever the hell they do on there
But the 4SC (which doesn't exist) should be made to be the same size physically as the 5C and just have the 3.5" screen with a larger bezel and compensate with larger battery or something
use lightning bolt and have the same body but with 3.5" instead of 4" screen so it's still obvious which one is the cheaper one but there actually is a budget one that still fits in new cases
RE: What Apple needed to have done
1/27/2014 10:47:51 PM
lolwut? Grammar buddy, grammar. And punctuation.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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