“Sales of Apple’s iPhone 5c have been so disappointing that the consumer technology giant will likely cut the price of the device soon or even scrap the model altogether, according to analysts,” Alistair Barr reports for USA Today. “‘They just missed it. Demand has not been good,’ said Gene Munster, an analyst at Piper Jaffray. ‘They will discount it and use that as a lever to improve unit growth. I don’t think they will get rid of it completely.'”
“‘There’s more of a difference between the 5c and the 5s, so you can play with price a bit more,’ Munster said,” Barr reports. “Others on Wall Street wonder whether the 5c will survive, especially if Apple brings out larger iPhones later this year. ‘I would expect them to cancel the product after the iPhone 6,’ said Peter Misek, an analyst at Jefferies. ‘Price cuts are not what Apple does. They build products that they are passionate about and then charge accordingly.'”
“Apple reported disappointing results and lower-than-expected iPhone sales on Monday. CEO Tim Cook told analysts during a conference call that demand for the high-end iPhone 5s was stronger than expected,” Barr reports. “The 5s accounted for 59% of total iPhone sales in the fourth quarter, while the iPhone 5c accounted for 27% and the older iPhone 4S made up the rest, according to a survey of 500 Apple customers by Consumer Intelligence Research Partners. The 5c sold less well than the 4S did after Apple released the iPhone 5 in September 2012, CIRP also noted… ‘It wouldn’t shock me if it’s replaced. It was an interesting concept but priced incorrectly,’ said Tavis McCourt, an analyst at Raymond James. ‘A more fashion conscious phone with colors and plastic should have been lower priced.'”
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MacDailyNews Take: Unapologetically plastic™.
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