Seeking Alpha

Apple roundup: 5C estimates, U.S. survey, BlackBerry poaching

  • KGI's Ming-Chi Kuo, whose supply chain scoops have often panned out, is cutting his FQ4 (Sep. quarter) iPhone 5C (AAPL +0.3%) shipment estimate by 33% to 11.4M units. He also predicts shipments will drop another 10% in FQ1 to 10.4M. However, he's unsure of the impact on total iPhone sales, since 5S and 4S demand remains strong.
  • Kuo's estimate cut comes a day after a Chinese site reported Apple has cut 5C production in half to 150K units/day.
  • Gene Munster's latest survey of 60 U.S. Apple Stores found only 6% of total 5S SKUs were available, down from 27% a week ago. Moreover, the percentage of stores having at least one SKU fell to 40% from 90%. Munster suspects the pending launch of the 5S/5C in 25 additional markets has tightened supplies.
  • The Financial Post reports Apple recently hosted an Ontario recruiting event aimed at poaching BlackBerry (BBRY -0.4%) engineers as the latter company gets ready to cut ~40% of its workforce. Intel, Motorola Mobility, and Square are also making attempts to hire engineering talent within BlackBerry's hometown of Waterloo.
Comments (25)
  • scott trader
    , contributor
    Comments (4511) | Send Message
     
    Poaching?????? Aren't they receiving notices their jobs are gone permanently.......Aapl always gets criticized for being slow to innovate so why would they go looking around Waterloo for engineers ? didnt it take three years to integrate qnx....
    11 Oct 2013, 12:56 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    in other words, Apple, Motorola, etc are fighting over Blackberry's castoff talent.
    11 Oct 2013, 01:03 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (219) | Send Message
     
    there are elements of BB that exceed Apple's quality...
    11 Oct 2013, 01:09 PM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (366) | Send Message
     
    " in other words, Apple, Motorola, etc are fighting over Blackberry's castoff talent."

     

    Sure, if you don't understand English.

     

    BB has not yet laid off the 40%. Companies are poaching - if you're picking up dead animals at the side of the road, it's not called poaching.

     

    BB will have a very hard time retaining their top talent in the current situation. BB is a sinking ship, and not a lot of people will want to stick around and see if there are enough lifeboats.
    11 Oct 2013, 01:24 PM Reply Like
  • scott trader
    , contributor
    Comments (4511) | Send Message
     
    Bbrys talent I am sure are sending out résumés
    11 Oct 2013, 01:29 PM Reply Like
  • TTNW
    , contributor
    Comments (32) | Send Message
     
    5 years ago if you travelled in China, all foreign engineers and executives toted blackberries to keep up with email, which were able to navigate the local carriers quirky 2G/3G networks. There may be value to mine BB talents as Apple seeks to improve user experiences in China's 3G and emerging 4G networks.
    11 Oct 2013, 10:17 PM Reply Like
  • jjkiam
    , contributor
    Comments (331) | Send Message
     
    I can understand why Apple might be recruiting BB engineers. As they look to expand the reach and functionality of IOS, they might be considering a transition to a multi kernal backbone and move away from Linux. Obviously pure speculation but Apple has made major transitions to it's OS as is evidenced when they purchased Next from Jobs in his return and adopted that as the basis for refreshing their OS!
    11 Oct 2013, 01:03 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (219) | Send Message
     
    This proves people don't want plastic phones! At least those who believe in quality, I mean the Apple faithful...
    11 Oct 2013, 01:08 PM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    I guess if you want a plastic phone, might as well get one from Samsung at half the price of a 5C.

     

    I'm surprised that Nokia/China are killing Samsung in the low end market. Even South Korea doesn't expect their smartphone business to last much longer as all they do is repackage current Japanese and American technology which is what China can do for even cheaper (a la the Japan Inc strategy that served Korea so well until someone cheaper comes along).
    11 Oct 2013, 02:33 PM Reply Like
  • GotLife
    , contributor
    Comments (1214) | Send Message
     
    Perhaps we had some insight into the 5C when we went to Best Buy looking to take advantage of the $45 price. The end cap display didn't show the color we wanted and asked the sales associate if he could show us the salmon? colored iPhone for ATT. He opened the vault behind the counter and the case was loaded with white phones, quite a few black and almost none in colors. The particular color we desired was the last one and he wouldn't hold it for later in the afternoon, suggesting that an internet order for in store pickup was likely to grab it.

     

    White seemed to be a popular color for women in the earlier models. Looks like colors may be more popular than Apple or retail expected among women and the younger demographic.

     

    As far as pricing, when you buy the iPhone at BB you pay $95 and they issue you a $50 gift card. He remarked that while you certainly could use it to discount the phone you could also apply the card to accessories like cases. Then he admitted BB doesn't carry the Apple case however and the inventory they have for new 5C cases is very limited. Bottom line, he was definitely pushing white and black.
    12 Oct 2013, 08:11 AM Reply Like
  • scott trader
    , contributor
    Comments (4511) | Send Message
     
    Plastic phone a mistake IMO.. Long aapl
    11 Oct 2013, 02:00 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    These numbers make no sense!! They have cut 5C production from a run rate of a little less than 30MM per qtr in half?? If they sell 14 MM 5Cs it is going to be a monster qtr! The breakdown I saw was 65/18/17% for 5S/5C/4S. Even if Kuo were correct at that % breakdown, it is over 60mm phones! If they sell 14MM 5Cs that would be close to 80MM phones in this qtr! These are all great numbers. I hope they are right.
    11 Oct 2013, 02:41 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    oops. Looks like apple's bet on plastic didn't pan out.

     

    Didn't they calculate that the 5C is just about as expensive as 5S to make? Then why bother with plastic if it's about the same cost.
    11 Oct 2013, 02:56 PM Reply Like
  • scott trader
    , contributor
    Comments (4511) | Send Message
     
    Because thirteen year olds like to bejewel stuff.
    14 Oct 2013, 04:38 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    Pman, disagree. 5C has lower BOM...significantly. 5C is selling great if 10mm or 14mm, or 28mm sold. Better than typical one year old year old phone. They sold 80% more phones YOY...that we know. This is rumor only and it contradicts reality
    11 Oct 2013, 03:12 PM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    Could it be that BB10 OS wasn't such a flop after all! If it was so bad and flawed why would Apple be trying to hire former BB engineers. If everything that the media bashing said about Blackberry was true, wouldn't it mean that Apple would be hiring inferior Engineers? Some food for thought!
    11 Oct 2013, 03:29 PM Reply Like
  • GotLife
    , contributor
    Comments (1214) | Send Message
     
    Because they are growing in the sales and BB had some neat code. Great software talent is in demand everywhere and competition is steep.
    12 Oct 2013, 08:15 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    @MJ Badaliacco it proves that all the consumers and media that said BB was a flop were wrong! That's what it proves.
    11 Oct 2013, 03:29 PM Reply Like
  • Keyser Smith Jones Soze
    , contributor
    Comments (97) | Send Message
     
    An estimate being adjusted from an earlier estimate that was based on an early production rate that was higher initially than it would eventually, because demand is higher initially than it will eventually be. All this means is that his initial estimate was not very good and he hopes that this one is better.
    11 Oct 2013, 03:42 PM Reply Like
  • rrosey2
    , contributor
    Comments (685) | Send Message
     
    The pricing of the 5C has been brilliant !

     

    It has helped the sales of 5S BY MAKING IT A NO-BRAINER TO BUY 5S.... 5S SALES are booming.

     

    But, at xmas colored 5Cs will sell. (5S probably will sell out).

     

    Next year, 5Cs will be discounted and sell like 4s are doing now.

     

    The next year, 6 will come out. 5S will be discounted, 5C will be more discounted, and 4s will finally be closed out (still carrying ios7).

     

    And so on and on....

     

    Brilliant...and then there are all the other products...and there are the drawing boards.
    11 Oct 2013, 05:41 PM Reply Like
  • Bbloomlu
    , contributor
    Comments (197) | Send Message
     
    Bought 2 5s from verizon today. waiting time almost a month. One is gold other silver. Went to two stores and same wait at both. One didn't have a demo in store. How bad could business be.
    11 Oct 2013, 09:12 PM Reply Like
  • GotLife
    , contributor
    Comments (1214) | Send Message
     
    I was amazed at all the display space competitive products have at the local Verizon store relative to Apple, estimated 90 to Apple's 10%. Looking closely, nothing but the HTC One had similar build quality. The Samsung tablets seemed more cheaply built than my Kindle Fire.

     

    Love my 5s. Very long APPL and holding.
    12 Oct 2013, 08:23 AM Reply Like
  • brilliantblue99
    , contributor
    Comments (78) | Send Message
     
    Apple doesn't want a repeat of the iPad mini story minimizing their margins. I agree with rrosey2, simply a Brilliant move. 5c makes you want the 5s. Over time, they will lower the 5c price and get new customers to try the apple ecosystem, then they will buy the iphone 6 !!!
    13 Oct 2013, 11:16 AM Reply Like
  • MajorDude
    , contributor
    Comments (252) | Send Message
     
    Apple hitting on all cylinders. Cash piling up. Customers signing up. Blackberry dead, Microsoft irrelevant, Android the choice of people with no money to buy anything.
    14 Nov 2013, 01:20 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    Blackberry still indispensible to the world's elite and with an elite CEO now at the helm and the best technology in the market...look out!
    14 Nov 2013, 01:27 PM Reply Like
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