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New reports of 5C/5S order shifts; Apple can pursue Samsung injunction

  • Digitimes reports Foxconn, said to be responsible for 30% of iPhone 5C (AAPL -0.4%) production, is stopping 5C production a northern China factory, and will shift capacity to iPhone 5S production.
  • The site also reports Apple respectively cut its 5C orders to Foxconn and Pegatron (said to be responsible for the 70% of 5C output) by "nearly one-third" and 20% a month ago due to "unsatisfactory sales."
  • The report comes shortly after Chinese site C Technology, which provided one of the first reports of a 5C order cut, stated Pegatron has cut 5C production to just 80K units/day from 320K/day in October.
  • Analytics firm Fiksu reports global 5S usage outpaces 5C usage by more than a 3:1 margin (6.9% of all iPhone usage vs. 2.2%). Localytics' activation data has also indicated 5S sales soundly outpace 5C sales.
  • Meanwhile, a U.S. federal appeals court has ruled Apple can pursue an injunction against Samsung (SSNLF, SSNGY) products ruled to be infringing the company's IP in last year's California suit. Judge Lucy Koh, who presided over the CA suit, ruled last December Apple hadn't proven the infringed patents drove Samsung's product sales. The infringement rulings were tied to older/largely outdated Samsung devices.
  • Previous: Apple reportedly set to buy PrimeSense
Comments (8)
  • Humble Eagles
    , contributor
    Comments (2168) | Send Message
     
    I would be careful on this tidbit. You can't infer much, even if it is correct because the S may be taking up the slack. I wouldn't infer anything from this flash either, but I went in to my Apple store Saturday to buy a charger (late morning) and took a look at the mini--the table was relatively free of customers! Yikes. Could have been a blip, and you never know, but it wasn't what I expected, to say the least. Not many people looking at the Air either. Oddly, the Mac tables were packed to the gills! Also, anybody find it odd they didn't release sales this year?
    18 Nov 2013, 01:06 PM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (388) | Send Message
     
    "Also, anybody find it odd they didn't release sales this year?"

     

    Apple doesn't release individual product sales, so with the separate launches anything released would indicated specific sales numbers. I expect that they will announce some aggregate iPad numbers before Xmas though. Or, not, who knows.
    18 Nov 2013, 01:19 PM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
     
    I was in one of the Las Vegas Apple stores yesterday, and my wait to talk to someone to buy an iPhone 5s was 45 minutes. The place was packed.
    I remember reading just how difficult the iPhone 5 was to manufacture (many rejects due to quality issues) and that a "redesign" might be in order. That may be the 5c,since the 5 is no longer available. Maybe we are misreading Apple's rational for making the 5c. May not have been to offer a cheaper phone, but to simplify manufacturing and keep margins up. Long Apple.
    18 Nov 2013, 01:25 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2168) | Send Message
     
    Ng, maybe, but if sales are booming Apple finds a way to release the info. Viper, there were also a lot of rumors that they built the C models early on--they could simply be stocked up well through Christmas and looking to throttle back for a couple of months. How did the iPads look?
    18 Nov 2013, 01:31 PM Reply Like
  • UnStopaBull!
    , contributor
    Comments (178) | Send Message
     
    I have a Air and have a Mini coming tomorrow. I have been checking the Apple store every day to see if the wait times on the mini retina are changing hoping this could give me insight on the sales. Up to now the lead times for the individual models have remained at 1-3 days for the 16/32 wifi only and 5-7 days for all the others. They are being shipped direct from China as well. If these are not available at B&M stores by Thanksgiving I will really question what type of sales they will provide. Many Apple users I am sure will order from their website but I was hoping that the Mini would sell great during the Black Friday and beyond crowd that might not go to the Apple store. Love the Air and will remain optimistic.
    18 Nov 2013, 02:01 PM Reply Like
  • John1138
    , contributor
    Comments (161) | Send Message
     
    Shifting capacity to the more profitable offering?

     

    Good news.
    18 Nov 2013, 06:25 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    The iPhone 5c isn't selling as well as the 5S.... the 4S didn't sell as well as the 5 when the 5 was launched. The 4 didn't sell as well as the 4S when the 4S was launched. The 3GS didn't sell as well as the 4 when the 4 was launched....

     

    I sense a pattern here.
    18 Nov 2013, 08:05 PM Reply Like
  • JG2000
    , contributor
    Comments (472) | Send Message
     
    I ordered an iPad Air on Nov 12th and they shipped it from China yesterday. This is interesting because most stores I've checked have iPad Air's in stock. I'd speculate they are trying to keep their inventory up for big holiday sales by still shipping online sales from China (this is obviously a fluid situation and my single data point is not meant to be conclusive).

     

    The mini retina seems to be a different situation. I have one on order [also in transit] from China. However, these are virtually non-existent in B&M as far as I can tell. If they start showing up in the stores by the end of the month I would be encouraged for their impact on FQ1 iPad sales...otherwise I would look at their impact conservatively. It may be that iPad Air picks up a lot of the slack. iPhone 5s sales appear to be booming and the likely 5C sales they are cannibalizing is a good thing for earnings.
    18 Nov 2013, 08:53 PM Reply Like
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