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Apple closes lower following iPhone event; 5C to start at $735 in China

  • Though initial takes on the iPhone 5S/5C are generally positive, Apple's (AAPL -2.3%) event didn't feature many big announcements that hadn't been reported by the rumor mill (the A7's use of a 64-bit architecture is one notable exception).
  • Meanwhile, TechInAsia observes Apple's Chinese site will be selling the 16GB iPhone 5C for an unsubsidized RMB4488 ($735), or just $131 less than the 16GB 5S. In the U.S., the 5C starts at $549 unsubsidized. It doesn't look as if Apple is willing to greatly sacrifice its margins to take share from cheaper Android hardware.
  • Though being discontinued elsewhere, the iPhone 4 is still available in China for RMB2,588 ($420) for the time being.
  • For now, Apple isn't giving 3rd-party developers access to its fingerprint sensor API. Odds are that will change down the line.
  • AnandTech offers a favorable take on the sensor after trying it out "Tapping and holding your finger on the button quickly unlocks the device."
  • Engadget on the 5C: "This is the spiritual successor to the iPhone 5 ... Given the price, it may not turn out to be the device for emerging markets, but it at least gives interested iPhone buyers more choice."
  • The Verge on the 5S: "This is definitely a refining year for Apple, but all of the refinements on the iPhone 5S are solid. That fingerprint reader might end up being a bigger deal than you'd think."
  • More on Apple
  • Update: Though Apple's iPhone LTE page doesn't mention support for China Mobile's TD-LTE network (as noted by Fierce Wireless), technical specs for the 5S and 5C indicate a variant of each phone will support the LTE bands (38-40) used by China Mobile.
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Comments (28)
  • donklos
    , contributor
    Comments (45) | Send Message
     
    So as long as the features were rumors the investment community loved them and bought AAPL, but as soon as they were real features the stock took a dump.

     

    You gotta love this dumb arse market.
    10 Sep 2013, 05:41 PM Reply Like
  • pagreen1966
    , contributor
    Comments (644) | Send Message
     
    It's called 'buy on the rumor, sell on the news'.

     

    Happens all the time!
    10 Sep 2013, 05:46 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    Actually, I suspect it was the same 'problem' there was with the mini. There was so much conjecture and outright assumptions about price that eventually the media bought into the assumptions and the 'price' of the iPhone 5c become accepted as fact. Reality didn't match expectations.
    10 Sep 2013, 10:41 PM Reply Like
  • Doyle3000
    , contributor
    Comments (1537) | Send Message
     
    why does everyone think the Chinese iPhone buyers can't afford the high end iPhone?. They are DYING for high end American products, especially cool stuff. There are some absolute idiots out there in financial reporting. Thankfully Tim Cook knows they are stupid and just tolerates them like ants at the picnic.
    10 Sep 2013, 05:43 PM Reply Like
  • fafatooey
    , contributor
    Comments (407) | Send Message
     
    At $500 the new iPhone would be 25% of the average Chinese annual income. Kind of an issue.
    11 Sep 2013, 02:12 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    it is not an issue.

     

    Many people buy what is important to them even $800+ iPhones when that person is only earning $500/month
    11 Sep 2013, 02:26 AM Reply Like
  • nungster
    , contributor
    Comments (121) | Send Message
     
    Don't you mean 735 yuan?
    10 Sep 2013, 05:47 PM Reply Like
  • milehr
    , contributor
    Comments (520) | Send Message
     
    The price drop is probably a knee-jerk reaction by traders who have benefited from the recent rise. The stock will resume the upward trend very soon.
    10 Sep 2013, 05:53 PM Reply Like
  • donklos
    , contributor
    Comments (45) | Send Message
     
    You promise?
    11 Sep 2013, 10:58 AM Reply Like
  • Matt-Man
    , contributor
    Comments (651) | Send Message
     
    I believe high 5C price shows possibility that Apple will change its pricing tactic in future. So far Apple has used same price for whole lifetime of one device and discount only close to end of the first year cycle.

     

    Competition in mobile side is used to discounting device after hot selling period of first 3-4months has passed. Also because new competition that can be superior arrives during this time and because manufacturing kinks are normally all sorted out by this time so cost per device goes down.

     

    So I predict new pricing concept along with dual device strategy.
    As such new device cost is much lower than last years iPhone5 so they could sell it with reasonable 30-35% profit margin around 300-400$. Of course best to take early eager shoppers cash first.
    10 Sep 2013, 05:54 PM Reply Like
  • Jack Baker
    , contributor
    Comments (952) | Send Message
     
    Apples unlocked price for the 16 gig 5c should be $550.00. That's what they said at the event today.
    10 Sep 2013, 06:05 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2150) | Send Message
     
    Remember, they cost more overseas because governments attach taxes and tariffs. Apple has to charge more to make their margin.
    10 Sep 2013, 08:01 PM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (388) | Send Message
     
    It's definitely odd that Apple has priced the 5C that way. They're charging more for the 5C in China than they are for the 5S in the US?

     

    I can't imagine how they'd justify that kind of pricing disparity...
    10 Sep 2013, 06:32 PM Reply Like
  • Matt-Man
    , contributor
    Comments (651) | Send Message
     
    VAT 'sales tax' in China is 17%, in most countries out of US they state taxed price rather than tax free one.
    10 Sep 2013, 07:41 PM Reply Like
  • roes0059
    , contributor
    Comments (17) | Send Message
     
    So no China Mobile deal then?
    10 Sep 2013, 06:34 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2150) | Send Message
     
    roes, I have been thinking the Beijing presentation is not to announce the new phones on CHL, but it is designed to put pressure on CHL to come to a deal...could be wrong and hope I am....
    10 Sep 2013, 07:56 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    CHL's 3g is fairly lousy. CHL just came out with LTE a few months ago, and wouldn't expect it much better.

     

    So therefore IPhones sold in mainland Cn have been not the same as those sold elsewhere.

     

    Though in Hong Kong, the SAR is soon coming out with LTE advanced. And therefore those IPhones have been the same as those sold by AT&T.

     

    Cn has not implemented EU's LTE yet.
    10 Sep 2013, 11:32 PM Reply Like
  • jakexb
    , contributor
    Comments (107) | Send Message
     
    It's not $735 in China, right? That can't be right. The Galaxy 4 is $650 unlocked, so the 5c has to be under.
    10 Sep 2013, 06:42 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    "not $735 in China, right?"

     

    Probably is, don't know how much the Galaxy 4 is in Cn. The smart money will buy Apple products in Hong Kong.

     

    I will.
    10 Sep 2013, 11:29 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1397) | Send Message
     
    Apple is out of touch with current reality. Only thing missing at Apple now the comedy tag team of Jim & Mike. If there were there, the similarity with Blackberry 4 years ago would be complete.

     

    Whether or not they announce China Mobile linkup, not too many in India and China will pay the sort of prices AAPL is asking for a dinky little 4" phone. Enough first world people in US may want to be parted from their money.

     

    Apple is on the downward glide path, flown by Blackberry for the last 4 years.
    10 Sep 2013, 07:56 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2150) | Send Message
     
    The 5C is not a low cost phone, folks. It is a high end phone. I am surprised Apple hasn't explicitly squashed that talk. I haven't heard them call it low cost, emerging market or anything like that. The media and fanboy geek sites have been calling it lower cost, or cheap. Analysts have been calling it cheap and low cost. We have been calling it that in our discussions, but Apple hasn't. The specs are high end, and the whole low cost idea is a myth that popped up and got killed by Apple today.
    10 Sep 2013, 07:59 PM Reply Like
  • samuel.kirz
    , contributor
    Comments (83) | Send Message
     
    "Also: though the 5S/5C are said to support more LTE bands than rival devices, the 2.5 GHz. band used by China Mobile (CHL) for its TD-LTE 4G network isn't among them. It's possible future 5S/5C models will feature the band, particularly in light of the WSJ's Friday report."

     

    This report is erroneous, the 5S/5C is compatible with the network used China Mobile.

     

    http://bit.ly/15i4RQY
    10 Sep 2013, 08:29 PM Reply Like
  • 426260
    , contributor
    Comments (134) | Send Message
     
    An article from FierceWireless (http://bit.ly/1e0h15G) states:

     

    "Apple's (NASDAQ:AAPL) newest iPhones, the iPhone 5S and 5C, don't support TD-LTE in the 2.5 GHz band, although that could eventually change if Apple strikes a deal with China Mobile or Sprint."
    10 Sep 2013, 09:41 PM Reply Like
  • samuel.kirz
    , contributor
    Comments (83) | Send Message
     
    Relinking to the erroneous report does not make it any less erroneous. Apple's official iphone spec page lists TD-LTE bands 38 39 40, which are EXACTLY the list for China Mobile.
    10 Sep 2013, 09:46 PM Reply Like
  • 426260
    , contributor
    Comments (134) | Send Message
     
    Clarification:
    http://bit.ly/18O8ywz

     

    "But it looks like the one carrier everyone was holding their breath for, China Mobile will have to wait. Ironically, while the new iPhones will support the carrier’s forthcoming LTE networks, it doesn’t support the unique Chinese flavor of CDMA China Mobile uses for 3G. Unless Apple plans on unveiling a new device specifically for China Mobile tomorrow at its separately planned Chinese media event, it looks like this is one iPhone rumor that turned out false."
    10 Sep 2013, 10:05 PM Reply Like
  • jebworks
    , contributor
    Comments (178) | Send Message
     
    Apple doesn't produce low end cheap stuff that analysts keep clamoring for only to then bash the company for producing lower margins. Can't win against the bean counters who only seem to understand numbers and nothing about aspirational brands and how to market them effectively which Apple certainly knows how to do.
    10 Sep 2013, 09:40 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (483) | Send Message
     
    "Looks like China Mobile is rolling out LTE TDD in three different frequency bands: at 1950MHz in Shanghai, and at 2300MHz and 2600MHz in other cities.
    These are all supported by the new iPhones (bands 38,39,40) please double check your research"

     

    http://bit.ly/1eCcu8h
    10 Sep 2013, 11:54 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    I wonder if this will start a trend toward bling bling phones. I'm curious what percentage of people will buy the shiny gold phone.
    11 Sep 2013, 03:53 AM Reply Like
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