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Apple says iPhone 5c hasn't met sales expectations

Record phone sales but mid-range doesn't excite customer base

by Mark Hodgkinson Jan 28, 2014

  • Tech News


    Apple says iPhone 5c hasn't met sales expectations
    Despite posting record iPhone sales in the last quarter, Apple’s latest set of financial results aren’t as healthy as many anticipated.
    The company has reported sales of 51 million iPhones for the period whereas Wall Street analysts were expecting 55 million.

    Sales in China – where they just established a major deal with China Mobile – were lower than forecast by Cupertino and the iPhone 5c – the company’s slightly lower cost alternative to its flagship phone – didn’t reach expectations, either.

    According to Apple CEO Tim Cook, sales of the 5c, “turned out to be different than we thought," although what percentage of sales it did represent was not revealed.

    Cook was speaking at the company’s quarterly earnings conference call where, when asked why he thought the 5c was underperforming, replied,:

    “I think the 5s, people are really intrigued with Touch ID, it's a major feature that has excited people. And I think that associated with the other things that are unique to the 5s, got the 5s to have a significant amount more attention and a higher mix of sales."

    It’s either that or their customer base isn't enticed by the thought of a slightly lower-end handset. As noted by Cook, the 5c doesn’t feature the Touch ID sensor nor the top-of-the range A7 processor found in the 5s. In fact, it’s pretty much an iPhone 5 with a plastic back casing.

    Reports in the Wall Street Journal suggest that Apple will scrap the iPhone 5s when they next announce a new phone line-up and it’s widely expected the refresh will see Apple launch iPhones with larger screen sizes, measuring 4.5-inch and 5-inches respectively.
    iPod sales down by 52%
    Sales of the iPad were more impressive, however, with Apple reporting 26 million units shipped in the 3 month period but the iPod is on the wane with only 6 million sold in the same time frame. That number is down 52 percent compared to the same period last year.

    Many analysts feel that Apple needs a new product innovation – and fast - to maintain their position as the dominant force in the technology sector, with Samsung hot on their heels and others also chasing.

    Was the iPhone 5c a mistake from Apple or will it go on to be a success? Please let us know in the comments below.

    Source: Reuters

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