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Analyst: Weaker than expected iPhone 5c sales may trigger China Mobile renegotiation

“Sales of Apple’s less-expensive iPhone 5c may be holding up an anticipated China Mobile deal, says KGI analyst Ming-Chi Kuo, but negotiations are likely nearing an end point,” Mikey Campbell reports for AppleInsider.

“According to a research note obtained by AppleInsider, Kuo believes the much-rumored China Mobile partnership will generate 15 to 20 million iPhone unit shipments in 2014, which will jump to 20 to 30 million the year following,” Campbell reports. “The analyst notes, however, that the actual numbers depend on Apple’s strategy in midrange and low-end products.”

“The analyst’s latest surveys indicate that demand for a TD-LTE version of the iPhone 5c, which is compatible with China Mobile’s unique 4G network infrastructure, has declined ‘dramatically’ over the past weeks. Subscribers are now focused on the more expensive iPhone 5s, Kuo says,” Campbell reports. “This is apparently well below Apple’s original production plan and would possibly require a renegotiation with the world’s largest wireless provider. ”

Read more in the full article here.

MacDailyNews Take: Oh, what a “problem” to have, having customers upselling themselves en masse to your flagship model!

Why the hell would anyone buy an iPhone 5c instead of an iPhone 5s?

It seems to me that Apple is using the iPhone 5c as a tool to push buyers to the 5s (well, at least those buyers who can grasp a simple value equation).

Once Apple gets the customer to the websites or into the stores and the prospective buyer can see and/or hold both phones and learn that they’re only separated by a mere $100, my guess is that Apple figures they’ll have plenty of upsales occurring. Upsales that will boost Apple’s iPhone margins nicely. — SteveJack, MacDailyNews, September 10, 2013

Related article:
Why would anyone buy an iPhone 5c instead of an iPhone 5s? – September 10, 2013

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