Weak iPhone 5c sales overshadow another blockbuster quarter for Apple

Weak iPhone 5c sales overshadow another blockbuster quarter for AppleApple has announced yet another record quarter, clocking profits of $13.1bn after shifting 51 million iPhones and 26 million iPads in the three months ending in December.

But the figures actually fell short of what analysts were expecting, and Apple CEO Tim Cook has suggested the blame lies with weaker than expected sales of the iPhone 5c.

Analysts had predicted Apple would shift 55 million iPhones and 25m iPads on the way record total revenues of around $58.1bn. In the end, the final figure of $57.6bn was still a record, and was at the upper end of Apple's own guidance of $55bn-$58bn, but Apple's shares nonetheless took an 8% hit once the numbers were announced.

Cook insisted Apple was “really happy with our record iPhone and iPad sales”, which were up on the respective 47.8m and 22.9m figures for the same quarter a year ago.

However, during Apple's earnings call he admitted Apple had misjudged the demand for the iPhone 5c, and sales had suffered as a result.

“It was the first time we ever ran that play,” Cook said of offering a cheaper variant of its iconic smartphone for the first time, “and demand percentage turned out to be different than we thought.

“The mix was stronger to the 5S, and it took us some amount of time to build the mix that customers were demanding.”

It's not clear by just how much the “mix was stronger” – the earnings report doesn't break down the overall sales number into figures for each handset – but Cook wasn't interested in talking about potential price cuts for the iPhone 5c.

“If we think it's in our best interest to make a change, then we'll make one,” he said.

Via The Verge

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10 comments

JanSt / MOD  Jan. 28, 2014 at 12:08

blah blah blah blah blah....
"analysts expected" - that means, "analysts told investors to get them to invest. Now they are p*ssed". Get over it.

I do not question the 'poorer than expected' sales of the 5c. I reckon the focus on the colours was a mistake. The 5c massively improved on battery life compared to the 5. The camera is subtly better, and everything is that bit faster while still squeezing a lot from the battery.
But then again.... pffft. According to Tommi Ahonen Apple are now the new Nokia. Basically dead. :D Analysts rock.

Stelph  Jan. 28, 2014 at 12:13

Hmmm, interesting. Before people start decrying its a flop, I read Tim's quote as meaning that when they released the 5C they were expecting the 5C (the "budget phone") to sell better relative to the 5S than the previous budget option has done (i.e the 4S vs 5, the 4 vs 4s in previous years). So its more a case of they think it would be more popular than the 4s was last year for example, and that was still pretty popular then.

It'd be interesting to know what the ratio of 5c : 5s sales are compared to the previous years 4s:5 sales, that would answer it once and for all

corgi74  Jan. 28, 2014 at 12:38

A post about 5c sales figures. Where's your mate JanSt?

JanSt / MOD  Jan. 28, 2014 at 12:51

A post about 5c sales figures. Where's your mate JanSt?
Yeah, what was his name?
He's fun.

Pondlife  Jan. 28, 2014 at 13:16

Think we've seen more discounts on all apple products in last three months of last year than previous years though.

The 2012 ipad mini was available for £130 in some places in the states on Black Friday if you allow for the $100 gift card...

Pondlife  Jan. 28, 2014 at 13:18

As for the 5c official or slightly under the table the prices have been cut substantially on hukd a few times already from what I recall.

JanSt / MOD  Jan. 28, 2014 at 14:05

Yeah, I realise a lot of people do not like the 5c. I know some who bought 4Ss instead of the 5c for Christmas.

Pondlife  Jan. 28, 2014 at 15:53

For the same money?

JanSt / MOD  Jan. 28, 2014 at 16:06

Yeah... Well, you more or less got a 32GB 4S for the price of a 16GB 5c around xmas

Pondlife  Jan. 28, 2014 at 19:09

Ah 32gb over 16gb sure but so small...

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