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Apple reportedly slashes 5C production in half

  • Chinese site C Technology, which leaked iPhone 5S/5C pictures before the devices launched, reports Apple (AAPL) has cut 5C production in half to 150K units/day (translation). The reported rate implies quarterly output of ~13.7M units.
  • Separately, Unwired View reports the 16GB 5C is now going for $489-$539 unsubsidized on the Chinese grey market, well below an official price of $726.
  • Mobile analytics firm Localytics has reported the 5S' share of active iPhones dwarfs that of the 5C, whose higher-than-expected unsubsidized prices fueled criticism. Checks indicate 5S demand has been better than expected, and the WSJ reported last month gold 5S production has been raised by 1/3.
  • Suppliers that could be affected by a major 5C production cut, assuming the slack isn't picked up by higher 5S output: CRUS, QCOM, BRCM, SWKS, TQNT, RFMD, AVGO.
Comments (50)
  • LYogi
    , contributor
    Comments (2305) | Send Message
     
    Goodbye Apple-brick road.
    10 Oct 2013, 07:17 PM Reply Like
  • Redrut
    , contributor
    Comments (1416) | Send Message
     
    Amazing how you can troll Apple but wax lyrical about Blackberry. Do you stand upside down when looking at the price charts?
    11 Oct 2013, 03:54 AM Reply Like
  • aardvark3
    , contributor
    Comments (508) | Send Message
     
    These scary untruths are becoming tiresome. Almost as tiresome as the Republican House.
    11 Oct 2013, 06:56 AM Reply Like
  • NY2LA 1
    , contributor
    Comments (485) | Send Message
     
    Apple is indeed not perfect but let's be fair. Samsung phones have their own issues. So does every brand. Have u tried updating on a Note 1 or Note 2 ? Do u want to own a Samsung smart watch? Talk about a huge miss. What an ugly device. Apple is not perfect and I wish they focused more on innovation, but their competition is terrible.
    16 Oct 2013, 12:12 AM Reply Like
  • GRJ
    , contributor
    Comments (248) | Send Message
     
    More FUD. When will the peanut gallery stop the bs?
    10 Oct 2013, 07:18 PM Reply Like
  • pagreen1966
    , contributor
    Comments (610) | Send Message
     
    I'm sure we had all this nonsense last December and then again in March of this year.

     

    It turned out that (AAPL) was merely changing suppliers and not cutting production.

     

    Could the same be true again?
    11 Oct 2013, 03:47 AM Reply Like
  • billhall68
    , contributor
    Comments (52) | Send Message
     
    I walked by the APPLE store just this past Tuesday afternoon. Tuesday!!!! It was packed. You would have thought it was Christmas Eve. Do not buy into the trash propaganda right now! You will kick yourself later if you sell.
    10 Oct 2013, 07:24 PM Reply Like
  • chopchop0
    , contributor
    Comments (3648) | Send Message
     
    People who bought into the propaganda a year ago saved themselves a massive capital loss.

     

    So did people who sold above $500 recently with the Icahn euphoria
    10 Oct 2013, 09:39 PM Reply Like
  • billhall68
    , contributor
    Comments (52) | Send Message
     
    I love it! I'm glad those people bought into the propaganda and sold. It allowed me to buy a great stock at a much cheaper price. I hope some of it was your stock that I bought at 395 a few months ago. Thank you because it made my year! It's a matter of time!
    13 Oct 2013, 10:08 AM Reply Like
  • scott trader
    , contributor
    Comments (5033) | Send Message
     
    Fifty country rollout in a couple weeks.....let's see how many units get gobbled up....just a fun fact lyogi they sold more in three days than Bbry sold in a year...
    10 Oct 2013, 07:24 PM Reply Like
  • LYogi
    , contributor
    Comments (2305) | Send Message
     
    I like apple for the most part but do think their profitability will decline in the next few years significantly.
    10 Oct 2013, 07:26 PM Reply Like
  • Saterley
    , contributor
    Comments (105) | Send Message
     
    They cut their 5c production to only 13 million per qtr (13 million is bad?) And this because everyone is buying the more expensive 5s ... Hmmm sounds awful.
    10 Oct 2013, 07:28 PM Reply Like
  • chopchop0
    , contributor
    Comments (3648) | Send Message
     
    Proof?

     

    And besides, if anything, that will hurt margins and the higher priced model certainly won't help market share
    10 Oct 2013, 09:39 PM Reply Like
  • scott trader
    , contributor
    Comments (5033) | Send Message
     
    Margin is higher on 5 c next....
    10 Oct 2013, 11:09 PM Reply Like
  • brilliantblue99
    , contributor
    Comments (78) | Send Message
     
    The markets up 2% and Aapl gives us 2 dollars .... C'omon. Where is the luv ?
    10 Oct 2013, 07:29 PM Reply Like
  • thotdoc
    , contributor
    Comments (1777) | Send Message
     
    aapl was going up when the mkt was going down
    10 Oct 2013, 08:01 PM Reply Like
  • vandeley
    , contributor
    Comments (120) | Send Message
     
    and the previous few days AAPL has been flat while the market has got crushed. AAPL is a low beta stock during big market moves with no specific AAPL news during the day.
    11 Oct 2013, 03:17 AM Reply Like
  • Arthur Fisher
    , contributor
    Comments (249) | Send Message
     
    Apple may be learning, but it's not losing.
    10 Oct 2013, 07:39 PM Reply Like
  • Hope128
    , contributor
    Comments (129) | Send Message
     
    I just look at the top wireless phones weekly sale in Taobao, the average price and sales number:
    1) iphone 4s, $445, 32.4K
    2) XiaoMi $175, 22.2k,
    3)iPhone 5, $628, 16.7K
    4)iPhone 5s $775 15.6K
    5)Huawei G520 $88 14.7K
    6)Lenovo A820T $78 13.4K
    7)Nokia 1050 $21 10.3K
    8)iPhone 5c $540 9.7k,
    9)SamSung GS3 $323 9.7k
    10)iPhone 4 $418 9.5K
    11)Samsung GS4 $495 $8.7k

     

    On another note, Galaxy Note 2 $418 7.8K & Galaxy Note 3 $707 3.4k

     

    so iPhones claim 1st, 3rd, 4th, 8th &10th place, and over 80K iPhones sold on aution site taobao per week, and total sales number are much more than $100 or so xiaomi/huawei/lenovo phones.

     

    If we look at the gray market we should see all top-end phones are lower than their official price, and Samsung phones are even lower, does it mean Samsung not selling well and need to cut production as well?

     

    iPhone 5c sold more at higher price than GS4, is that a failure by any sense? this is also consistent with US carrier's sale number that 5c claimes 2nd & 3rd place.

     

    iPhone 5s sold 5x at a higher price than Galaxy note 3, they are both new releases while in USA the retail price Note 3 is $100 > ip5s

     

    iphone 4 is the same price as Note2 but sold much more.

     

    iphone 4s claims the number 1 spot and prices much higher than GS3.
    10 Oct 2013, 07:47 PM Reply Like
  • Hope128
    , contributor
    Comments (129) | Send Message
     
    There are a few listings with ip5c listed at RMB2800 ( about $460), but only like 4 people bought it, RMB3300 ($540) listings had thousands of sales . Worried about $460 ip5c are knock offs?
    10 Oct 2013, 08:11 PM Reply Like
  • Hope128
    , contributor
    Comments (129) | Send Message
     
    3 hours after I posted this data, 5c weekly sale already jumped another 800 to 10.5k,and its ranking moves up 1 this week.
    10 Oct 2013, 11:32 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    Interesting numbers.

     

    Looks like the Galaxy S4 is selling just between the 4S and the 5C.
    10 Oct 2013, 11:43 PM Reply Like
  • Hope128
    , contributor
    Comments (129) | Send Message
     
    This is the screen shot of taobao's top weekly cell phone sales, the price is in Chinese yuan, just divide it by 6 then you get dollar. 5s sales go up quickly, so does 5c.
    http://bit.ly/15scVOL
    11 Oct 2013, 12:11 AM Reply Like
  • Yokyok
    , contributor
    Comments (330) | Send Message
     
    so wow.
    people don't wanna pay big bucks for kiddie colored phones?
    surprise surprise
    10 Oct 2013, 08:01 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    What I see is Apple's 'kiddie colored' phones are outselling Samsung's flagship at a higher price.
    11 Oct 2013, 02:47 AM Reply Like
  • A Prudent Investor
    , contributor
    Comments (1192) | Send Message
     
    There are idiots and liars all over the world. This is how markets are made.
    10 Oct 2013, 08:03 PM Reply Like
  • jjkiam
    , contributor
    Comments (385) | Send Message
     
    Yes the new Apple is Doomed reports are starting to flow in fast and furiously. Since there is nothing negative to report on the 5s we now focus on how the 5c isn't selling at all. So if the quarterly production numbers are correct and Apple is only producing another 13m 5c units for the rest of the quarter we now conclude that the phone is failing when we don't have a clue how many Apple produced leading into the launch! In addition this whole Chinese grey market analysis is hilarious because this is the 1st year Apple released the IPhone simultaneously in China so why would anyone buy through this channel when they can get the IPhone through normal channels. Oh I guess I shouldn't bring up such minor details. The other reports of retailers discounting the 5c are also being offered up as evidence of poor sales, most of the time retailers run major promotions on their best selling items to draw traffic Not the opposite! Smart least these reports are consistent with every product Apple has released over the last few years- Excess Inventory/Supply Constraints/ Channel Problems. It seems none of these analysts are very original and rely on repetition with EVERY release. funny how you NEVER read about these problems with Samsung, hmmm I guess they are perfect and there products are always in perfect balance to meet demand. Unbelievable!!!
    10 Oct 2013, 08:12 PM Reply Like
  • civ-e
    , contributor
    Comments (350) | Send Message
     
    the 5c production number is not very meaningful without an accompanying 5s number.
    10 Oct 2013, 08:33 PM Reply Like
  • Cdn_divman
    , contributor
    Comments (89) | Send Message
     
    And without knowing how many were built before they decided to cut back...
    10 Oct 2013, 11:50 PM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
     
    My recollection was that the iPhone 5 was more difficult (read costly) to produce than expected. So now AAPL isn't going to offer the iPhone 5, but offers the iPhone 5C, with all the "guts" of the 5, but presumably less difficult to manufacture than the 5, resulting in higher margins. And this is a bad thing?
    10 Oct 2013, 09:26 PM Reply Like
  • Thomas S Hunter
    , contributor
    Comments (15) | Send Message
     
    Not really that surprising. Apple did not price the 5C low enough to capture significant amounts of new customers at the low end of the market and their existing customers, who are willing to pay the premium prices Apple's brand is known for, desire the more expensive of the two phones. Seems like Econ 101 to me.
    10 Oct 2013, 09:27 PM Reply Like
  • khoa_van
    , contributor
    Comments (33) | Send Message
     
    I think the 5C is priced correctly at this time; they can lower it next year. Otherwise, both the 5S and 5C will be out of stock. Then the analyst would complain about 5C production issue. I'm still waiting for my 5S gold that I ordered just minutes after Apple start selling on their website.
    10 Oct 2013, 10:19 PM Reply Like
  • dmarilley
    , contributor
    Comments (614) | Send Message
     
    I gather enough data to know North America demand for phones, AAPL is about what has been expected, which is nothing great.
    10 Oct 2013, 09:29 PM Reply Like
  • jjkiam
    , contributor
    Comments (385) | Send Message
     
    So the 9m 1st weekend number was expected? And all the analysts projections of 5m or less were merely attempts to mislead the market ?
    11 Oct 2013, 09:16 AM Reply Like
  • ss88
    , contributor
    Comment (1) | Send Message
     
    Well, 5c will hardly move in china and emerging market as it was viewed by the consumers in these market as 5 "cheap" handphone, i.e poor man's iPhone. Why would consumer buy such expensive handphone (relative to android phone) and still being viewed as poor people
    10 Oct 2013, 09:34 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    When you start with the assumption that people are stupid and shallow and build from there, your premise is probably wrong.
    11 Oct 2013, 12:02 AM Reply Like
  • kimboslice
    , contributor
    Comments (1552) | Send Message
     
    The anti-Apple FUD is a good "contra-indicator".

     

    Apple is gonna sell a lot of stuff before the end of 2013.
    10 Oct 2013, 09:40 PM Reply Like
  • millsy1
    , contributor
    Comments (97) | Send Message
     
    Suppliers will sell off and i will buy more tqnt. Price will then rebound when an aticle comes out on how well 5s is selling. Buying oppurtunity for long term investors in the supply chain.
    10 Oct 2013, 09:53 PM Reply Like
  • JG2000
    , contributor
    Comments (458) | Send Message
     
    Apple usually over orders early and then cuts when actual demand trends become more clear. They also have wiggle room to play around with price if they want to trade 5C margin for volume (not saying they should or shouldn't, just a very available option).

     

    The 5s has stolen the show (not a bad thing at all), but the 5C could gain some ground during the holiday shopping.
    10 Oct 2013, 10:18 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1325) | Send Message
     
    I wish the MM were as permabullish as this thread. Unfortunately they are more hardheaded, less emotional and they move the markets.
    10 Oct 2013, 10:26 PM Reply Like
  • mphill47
    , contributor
    Comments (557) | Send Message
     
    I don't know about the rest of you but I'm selling ASAP ahead of earnings. Tell Carl bye for me.
    10 Oct 2013, 10:42 PM Reply Like
  • BigJ1260
    , contributor
    Comments (206) | Send Message
     
    Chop Chop
    A little balance might be nice

     

    Samesung Trolling gets old after awhile
    - although, I know they did announce that they have a gold phone too - and will soon have 64 bit too. Can't wait for their fingerprint scan announcement.
    11 Oct 2013, 12:11 AM Reply Like
  • jamesingram32
    , contributor
    Comments (633) | Send Message
     
    their fingerprint scan announcement is in the rumour mill. Have a look on the frotn page of SA. They are sniffing around a Swedish fingerprint scanning company!
    http://reut.rs/19tfAJy
    11 Oct 2013, 07:08 AM Reply Like
  • chopchop0
    , contributor
    Comments (3648) | Send Message
     
    BigJ1260, care to list what iOS and the IPhone/IPad have ripped off from Google? Or do you like being one-sided?
    11 Oct 2013, 09:24 AM Reply Like
  • berniespear
    , contributor
    Comments (238) | Send Message
     
    this is all just noise and doom and permabull before the real products come out...a bigger screen iPhone and a TV.
    11 Oct 2013, 02:46 AM Reply Like
  • sfinvestor
    , contributor
    Comments (1029) | Send Message
     
    I think it was obvious that anyone that wants a Iphone 5c can get one, thus the rate of production was inevitable once you go from global launch to maintaining the channel.

     

    The Iphone 5S is the key. A production cut will really be news. As far as I know, the 5S was ramped up (at least the GOLD version).

     

    Also, people who trade the 5 to the 5S will instantly mean 5C will have to compete with the used 5's. I mean, if I have to choose between the two, I rather buy a used 5. The color Iphones are really for the kids.

     

    For the small difference, the 5s is a no brainer based on the A7, M7 chip, Ultrapixel camera with dual flash.
    11 Oct 2013, 03:38 AM Reply Like
  • BigJ1260
    , contributor
    Comments (206) | Send Message
     
    Yes Chop
    Everyone knows that Apple decided to come out with ios after Schmidt was on their board and told them about this new thing called Android that didn't exist yet- and that's how they came out with the iPhone first.

     

    Oh wait, It was Schmidt who saw what Apple was doing in board meetings- copied their strategy at Google and began to develop Android - and then had to recuse himself from the Apple board.
    11 Oct 2013, 12:04 PM Reply Like
  • chopchop0
    , contributor
    Comments (3648) | Send Message
     
    Right. And let me guess.... everything that comes into iOS came from AAPL first?

     

    http://bit.ly/1cEFT2q

     

    http://bit.ly/1cEFQE3

     

    And when AAPL builds a 5" smartphone, you'll tell me they did it first too LOL
    11 Oct 2013, 02:45 PM Reply Like
  • Saterley
    , contributor
    Comments (105) | Send Message
     
    Samsung CEO: "Okay guys Apple has come up with a fantastic idea in the IPhone, it has completely revolutionized the industry forever. We have to counter with an innovation equal in magnitude? Any ideas?"
    Engineer: "Let's take their phone and put a bigger screen on it! "
    CEO: "Wow, brilliant, we need a patent for this one. When mobile history is recorded it will say the two biggest innovations of our time were the smart phone and the bigger screen smartphone.
    But wait, Apple already put out a tablet which is basically a big screen IPhone except for the modem. So the big screen really is their idea also."
    Eng: "Okay so we take both their ideas, combine them and put our name on it!"
    CEO: "Brilliant. That's lunch everybody."
    12 Oct 2013, 12:07 AM Reply Like
  • p2invest
    , contributor
    Comments (147) | Send Message
     
    Separately, Unwired View reports the 16GB 5C is now going for $489-$539 unsubsidized on the Chinese grey market, well below an official price of $726.

     

    So, they are fake, stolen, or China government untaxed.
    12 Oct 2013, 12:59 PM Reply Like
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