Opinion: Will Apple abandon the ‘low-cost’ iPhone concept after apparent failure of 5c?

5c

Apple doesn’t break down its iPhone sales figures, so we don’t know for sure that the iPhone 5c sold poorly, but certainly everything we do know seems to point in that direction – from early sales estimates through analytics and consumer surveys to Apple switching production from the 5c to the 5s.

Tim Cook said in an earnings call that “the mix was something very different than we thought,” and intimated that the model might be dropped: “If we decide it’s in our best interest to make a change, then we’ll make one.”

None of this necessarily means that the 5c was a complete failure, of course: record-breaking iPhone sales right from the outset could mean that the plastic phone did ok, it’s simply that the 5s sold far better than expected. It could also be that it was the extra sales gained from the 5c that helped break those records.

But I suspect not. While the brightly-colored 5c was not without its fans, it was the iPhone 5s with its Touch ID sensor and gold colored model that got all the attention, and I don’t think Tumblr advertising is going to change that. So my bet is we will again see a trend away from  colorful plastic iPhones …  Read more

Next iPhone reportedly sports a larger screen and sapphire crystal display

Apple-iPhone-6-concept

Apple is preparing to release not one, but two new versions of the iPhone in September, according to the South China Morning Post. Each version will ship with a larger display than the iPhone 5s, coming in at a whopping 4.7″ and 5.5″, respectively. The displays are said to have a pixel density of 441ppi, much higher than the current 326ppi found in the iPhone 5 and later.

The report also states that both displays will be made from sapphire crystal, which fits with recent reports that Apple is planning to have its latest sapphire plant in Mesa, AZ operational in February for a “critical” product component. The displays will also be flat, not curved, the Post says.

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WSJ says two larger screened iPhone models due this year, plastic 5c to be scrapped

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The Wall Street Journal is reporting that Apple is planning to release two distinct iPhone models with larger displays later this year. This corroborates a report from Bloomberg News published late last year, so this is not entirely new information. The first new iPhone is claimed to have a screen between 4.5 and 5-inches while the second model will go beyond 5-inches in size:

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Foxconn execs charged with taking bribes to award iPhone supply contracts

Photo: Thomson Reuters

Photo: Thomson Reuters

Several former execs at Foxconn have been charged with taking bribes from companies supplying the company with iPhone components, reports the WSJ.

Following a year of investigation, prosecutors said Thursday they have detained a former Foxconn general manager for allegedly taking kickbacks from supply chain partners. Prosecutors said three other former Foxconn employees were released on bail [after being charged] …  Read more

China Mobile iPhone launch could lead to subsidy wars, say analysts

Image: thenextweb.com

Image: thenextweb.com

Analysts say that the official launch of the iPhone on China Mobile could lead to subsidy wars as Chinese carriers compete to attract buyers. The predictions, quoted by Business Insider, follow price cuts by rival carriers China Unicom and China Telecom as China Mobile reports 1.2 million pre-orders.

China Mobile is currently offering the iPhone 5s free with a 24-month contract costing the equivalent of $98 a month. A 30-month contract on China Unicom costs $63 a month.

I do think you’re going to see a subsidy war coming,” said Michael Clendenin, managing director of Shanghai-based RedTech Advisors. “China Mobile, if they’re not making their targets on sales for these phones, they’re going to increase the subsidies [...] It’s like airlines: the other guys will fall like dominoes, so China Unicom will do it and China Telecom will do it” …  Read more

AAPL stock more than 3 percent up on China Mobile news

aapl

After the fall in Apple’s stock value when the China Mobile failed to materialise as expected on 18th December, yesterday’s news that the deal had finally been concluded sent the stock shooting back up again, having climbed more than 3 percent at the time of writing (it was up 4% in pre-market trading but has settled).

With the WSJ having reported that 18th December was the day, the market was clearly jittery when nothing materialized. Everything had appeared to be in place: regulatory approval, Apple putting the handsets on sale in China on the opening weekend, China Mobile posters, a pre-order website, in-store displays – and 4G service up-and-running on schedule …  Read more