Adding its voice to the cacophony of guesses regarding Apple's iPhone production, an NPD report on Friday claims iPhone 5s fabrication will soon be boosted by some 75 percent, while the 5c will see a drawback of 35 percent.
Citing channel checks, NPD Display Search "can confirm" a slowdown in iPhone 5c production, which supposedly comes along with a hefty increase in 5s orders.
The purported data was revealed in a post to NPD's Analyst Blog, a space containing articles written in a more casual tone than the company's usual research reports. A such, the piece is somewhat skewed toward the opinions of its authors, senior analysts Tina Teng and Shawn Lee, who said the sales performance of Apple's iPhone 5c has been thus far disappointing.
The analysts note two factors are accountable for the poor showing: a miscalculated China launch and consumer expectation that the phone would be "cheap."
According to the post, Apple raised the iPhone 5c's price to reach an acceptable profit margin when Chinese carriers offered competitive subsidies during the country's Golden Week holiday. This suggests Apple may have miscalculated the 5c's launch timing, Teng and Lee write, as the company was supposedly targeting the Chinese market with the device.
Further, the analysts said industry watchers and consumers were unpleasantly surprised by the 5c's base price tag, which was anticipated to be substantially lower than Apple's previous offerings. This assumption was based on early rumors claiming that the handset would be Apple's first low-cost offering.
This is contrary to reports published in the weeks leading up to the phone's debut, including a statement from the CEP of Apple's partner manufacturer Pegatron, who said the 5c would be sold as a higher end mid-tier device.
While the blog post may not be the most carefully reasoned, the data it was based on could be accurate. If so, the production cut for iPhone 5c and jump for 5s is substantial, even though Apple's original forecast is unknown.
NPD's analysis comes on the heels of a separate report from The Wall Street Journal, which cited sources as saying Apple is cutting iPhone 5c production. In a breakdown, the publication said Pegatron would see a 20-percent decrease in orders, while Foxconn is planning to cut production by roughly one third. Reuters echoed the WSJ report later that day.
54 Comments
"The analysts note two factors are accountable for the poor showing: a miscalculated China launch and consumer expectation that the phone would be "cheap."" They have data on China already? What consumer expectation? Basically they are guessing. Consumers had no expectation of a 5C.
They will increase during the holiday season.
Consumers had no expectation of a 5C.
Of course they did. Plastic phone rumours were out for months. Plastic equates to cheap in most people's minds.
That is interesting, as all I have seen in the wild so far is the iPhone 5C, though in all fairness that could be because of the color. I think it will be interesting to see how many are sold over Christmas, as carriers are no doubt going to drop the entry point to $99 with a regular contract or $0 with the newer upgrade sooner (T-Next, VZ-Edge, S-One up, TMUS-Jump) plans. I am torn, I was thinking of getting a iPhone to swap out with my Android device occasionally and I know the iPhone 5S has the 64-bit chip, finger scanner, slightly better camera W/slow motion, but I am not sure how much that matters to MOST people. Also just a observation, but it seems even though the iPhone 5 and iPhone 5C have the same guts the [5C] seems to spank the iPhone 5 in smoothness. Maybe clock speeds are higher, since it no doubt has better yields? My dad's iPhone 5 seems slightly off since iOS 7 [and the subsequent 7.0.2 update], I may factory restore it to see if that fixes it.
That is interesting, as all I have seen in the wild so far is the iPhone 5C, though in all fairness that could be because of the color. I think it will be interesting to see how many are sold over Christmas, as carriers are no doubt going to drop the entry point to $99 with a regular contract or $0 with the newer upgrade sooner (T-Next, VZ-Edge, S-One up, TMUS-Jump) plans.
I am torn, I was thinking of getting a iPhone to swap out with my Android device occasionally and I know the iPhone 5S has the 64-bit chip, finger scanner, slightly better camera W/slow motion, but I am not sure how much that matters to MOST people.
Also just a observation, but it seems even though the iPhone 5 and iPhone 5C have the same guts the [5C] seems to spank the iPhone 5 in smoothness. Maybe clock speeds are higher, since it no doubt has better yields? My dad's iPhone 5 seems slightly off since iOS 7 [and the subsequent 7.0.2 update], I may factory restore it to see if that fixes it.
The central issue of difference and it may impact smoothness, is the 5c has a different radio chip than the 5: the same one as the 5s. That's due to their wanting to have both of the "current" devices be China Mobile LTE compatible and the chip in the 5 and before wasn't. So even in other areas there might be performance differences...
Yeah if I'd gone with looks I'd have gotten a 5c, but I'm a tech freak so I "put-up" with the more formal styling of the 5s (which is a bit prettier than the 5 IMHO) to get the higher speed etc. The scanner is one of those "future tech" things, meh in and of itself at the moment (but wait 'til it replaces all those #*&$%%^ passwords!) but it did get me to password protect the thing..... and it's worked rapidly and reliably so far so I've left it on. Which no doubt makes the SFPD and NYPD all warm and fuzzy. :)