Some flop: Apple’s iPhone 5c outsold Blackberry, Windows Phone and every Android flagship in Q4

“Apple’s high-end iPhone 5s has been so remarkably successful, in spite of the supposed cheapening trend in smartphone buyers’ tastes, that Apple’s critics have been forced to pounce upon the supposed ‘failure’ of the iPhone 5c instead; a phone that sells so ‘terribly’ that it also outsold the ostensibly successful Samsung Galaxy S4 on half of America’s top carriers, and pushed every other Android phone out of the top U.S. sales charts entirely, from the first month it went on sale,” Daniel Eran Dilger reports for AppleInsider.

“The primary data point supporting the ‘5c Failure’ propaganda campaign is that the cheaper model hasn’t been able to outsell Apple’s top of the line 5s, as if Apple would prefer to sell the 5c and collect at least $100 less per sale… Apple’s iPhone 5c was actually more successful than every other Android flagship smartphone,” Dilger reports. “Data from multiple sources, compiled by blogger J. M. Manness, indicates that about 12.8 million of the 51 million iPhones Apple sold in the winter quarter were iPhone 5c, while 6.4 million were iPhone 4S and 31.9 million were iPhone 5s. That number aligns with reports that the 5s outsold 5c by a ratio of around 2.5:1 overall.”

“That means iPhone 5c sold twice as many units as all Blackberry smartphone sales combined (6 million), more than all of Nokia’s Windows Phone smartphone sales in the winter quarter (8.2 million), and in fact, all of Microsoft’s Windows Phones sold globally in the winter quarter (slightly more than 8.2 million, as Nokia makes 90 percent of the world’s Windows Phones),” Dilger reports. “Even Samsung’s flagship Galaxy S4 reportedly sold just 9 million units in the winter quarter. If you do the math, that’s less than 12.8 million. LG’s heavily marketed flagship G2 reportedly sold just 2.3 million units in the winter quarter. That indicates that Apple’s mid tier iPhone 5c outsold Samsung’s Galaxy S4 and LG’s G2 put together. ”

Much more in the full article – recommended – here.

MacDailyNews Take: Unsurprisingly, the Apple is subject to yet another FUD campaign, this time for iPhone 5c.

As MacDailyNews’ own SteveJack wrote the day iPhone 5s and 5c were unveiled:

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.

Oh, BTW, Apple’s going to sell a boatload of both models (and millions of 4S units too)!

Are you listening, margin-loving Wall Street?SteveJack, MacDailyNews, September 10, 2013

As we’ve pointed out repeatedly:

According to CIRP, in the days after launch, the iPhone 5c accounted for 27% of iPhone sales vs. 64% for iPhone 5s. In the previous year, also according to CIRP, the iPhone 4s captured 23% vs. 68% for iPhone 5.

How is the 5c a “pretty magnificent flop?” Answer: It’s not. It’s a media concoction. Apple expected a bit more than they got, but that doesn’t mean iPhone 5c is a “pretty magnificent flop” in the grand scheme of things. The iPhone also-rans would kill for iPhone 5c sales.MacDailyNews

CIRP: Apple iPhone sales by model, October 2012 vs. September 2013

50 Comments

        1. Bingo. One of the only guys to cover technology actually worth reading, because he’s one of the only ones out there who actually knows how to do the job, and has the intelligence to really interpret the data.

        1. Oh, he has a clear Apple bias, and I’ve seen him choose his wording carefully to avoid the obvious counter-arguments without actually addressing or refuting them. It’s subtle, and he’s LESS biased than most out there, but it’s there.

          But what really sets DED apart from the rest is that he’s not lazy in his analysis. He takes the time to gather information and actually analyze it for himself instead of relying on others’ half-baked opinions, buzz phrases, and click-baiting. He does the real work, even if there’s an agenda behind it.

        2. Again, please can you explain why you feel DED is biased? Yes, I know many of his articles conclude in favor of Apple. But this does not necessarily imply bias. The key question remains: Is he right or wrong? If conclusions are based on sound research and analysis, they are not biased. You are saying DED’s articles are incomplete or lacking, and that he blindly concludes in favor of Apple anyway. I would like to know where you think his conclusions are overstated based on the research and analyses he provides.

          What I like about DED is that he blows holes in many prevailing “conventional wisdom” myths propagated by hack journalists. (Like: “the iPhone 5c is a flop!”) And he does so with facts, figures, data, and analysis. He reveals the poor quality of a lot of tech writing out there, and to this extent he does us all a huge favor. Hopefully the hacks will eventually get embarrassed about the poor quality of their journalism, and will raise their game.

          It is also odd to hear someone call DED biased, when I rarely or ever see Apple-bashing bullshit articles called out for bias. (Except in MDN.) In my opinion, DED is one of the most honest and insightful commentators out there.

        3. The bias isn’t necessarily a bad thing, as it has become known to be in so many other areas of journalism. But, yes, by any journalistic measure, DED is outwardly biased. Instead of just laying out the facts and their meaning he surrounds his presentation with affective commentary that both rewards Apple fans and incites those who dislike Apple’s approach. The simplistic litmus test is to observe your own reaction to reading his articles. I’ll venture that you do not respond with an academic “Huh, look at that: the iPhone 5c outsold …” but rather something like “Yeah, baby, see? Take that you fandroids!”

          As docwallaby said, DED can be pretty selective in his presentation of facts and history. And as if he expects every reader to be new to his reporting, he frequently rehashes old arguments where he bashes Microsoft and Windows. I am thankful for his analysis and reporting of it. But I, as I think docwallaby has too, have often wished he would tone down or eliminate the bashing so we could forward his articles on to Windows suffers who could benefit from having the old opinions of Apple in the marketplace replaced with fresh and unbiased work.

          I know you would like examples, but I don’t know we can provide that. DED has toned down his rhetoric since moving away from his independent reporting to his present affiliation with AppleInsider, but the simple fact that his affiliation remains with AI is sort of prima facia evidence of his bias 😉

        4. I’m not criticizing DED. I’m not saying his articles are incomplete or lacking. I’m not saying he’s doing anything wrong. I’m not saying he needs to change anything. I think he’s the best at what he does. I’d rather read his work all day than any anti-Apple idiot analysts from Business Insider or Forbes or Seeking Alpha or The Motley Fool.

          The guy writes opinion pieces for an Apple news site. I’m pretty sure he’d be open and honest about leaning Apple. Saying he has a bias isn’t a criticism. So please don’t put words in my mouth because you interpret bias as having a severe negative connotation.

  1. The scary thing is that analysts who incorrectly point to Apple’s failures are advising clients on how to invest their hard earned money.
    The trend nowadays to to go with the gossip and forgo any independent analysis or thinking.

    1. Tell me about it. The sheeple factor is outrageous in the current era, especially in the USA. There’s a face that goes along with it, even among people I call friends. You try to discuss something is crucial as the demolition of the Fourth Amendment to the US Constitution and the look back at you, oblivious.

      Oblivious.

    2. There is no critical thinking going on. According to most people these days, there are no absolute facts. What matters is how many people back a certain opinion, regardless of the facts. Everything is relative, so the “facts” that are true for the greatest number of people are treated as reality.

      We see it in every arena of discourse in the US. The facts don’t matter. What matters is spin. Get the largest number of people to believe your story and you win. It doesn’t matter what reality is. It doesn’t matter what evidence you have. The loudest cheering section determines what is real, and what the facts are. It’s happening even in science. The great put-down these days for unpopular scientific research is, “It’s not peer reviewed.” Never mind the facts, methods, and findings. If it doesn’t agree with the consensus opinion then it’s invalid.

      Apple’s performance and fundamentals haven’t changed at all. But Apple’s stock price is dictated by the spin put on every report of any kind pertaining to Apple. Sometimes it’s not even the spinning of an actual report. Sometimes the report itself is created for the spin that can be imparted to it, in order to produce the desired effect.

      1. Zeke, the state of affairs is despicable. There are no two ways about it. Competition in every sphere is desperate and shameless in the lust to win, at any cost, and humiliate the opposition without mercy.

        It would be a tragedy, if only it hadn’t been going on since the species learnt how to write, the better to sling dung without having to physically gather it.

      2. Agreed. Have you seen the pictures of Lincoln-era public discourse where a speaker would take the platform in the middle of the city and stand before townsfolk for 20 minutes to an hour presenting an argument? And the people would listen and consider what they had heard? Nowadays we can’t even take the time to say “Cable News Network” — instead we go to CNN. Some day I’d love to discover when the phrase “on the one hand” came into popular use because it probably correlates well to the solidification of the two-party system, the polar opposites, the notion that there is only this way or that way, that you’re either right or you’re wrong, that you’re either for or against us, you are either left or right — and hereabouts, that you either win in the marketplace or you lose.

        1. And furthermore, they won’t LET you be in a neutral, nuanced position. Either you agree with them completely, or you are ascribed all of the polar opposite, absolutist positions of the “Other” camp, and placed within it, which is the best way they know to discredit you.

        2. Yup. Maybe we should start a new political party: The Nuanced Other Party for Everyone. NOPE for short 😉

          Reporter: “Senator Zeke, are you for or against SB11?”

          Sen. Zeke: “Neither. The bill purports to be about saving unborn gay whales from mercury poising while in captivity within national parks during times of federal shutdown from stalled budget negotiations. We can all be behind that, right? However, the riders attached to the bill are trying to fund the expense by reducing the home mortgage deduction given to left-handed small business owners who hire minorities, and I just don’t think that’ll raise the necessary funds to be budget neutral.”

          Reporter: “So you’re against it then?”

          Sen. Zeke: “Sigh. Go home. Take a civics class. Then a macro-economics class.”

          Headline: “Senator Zeke (NOPE, OH) is against baby whales”

  2. Like I said a few days ago: Just because the 5c sold less than the 5s doesn’t mean that it’s a failure. And what’s even better is that Apple now sells a metal and a plastic phone, giving Android users even more options from Apple.

    And when Apple produces a larger-sized phone (despite how silly I think they are personally) people will have even less reason to purchase Android and switch to iOS.

    A few years from now the 5c will been seen as the first salvo in Apple’s goal to take Android marketshare, and virtually every hater will–of course–have seen it all along.

      1. I wouldn’t go far as saying that I “saved” Apple, though I would say that when they were flirting with bankruptcy I was buying their products.

        While I may not have “saved” them, I sure as Hell helped them get to where they are now.

  3. No one knows the sales numbers so it is all conjecture at this point.
    Where analysts get their sales numbers from must be from the same place all those “imminent” Apple TV’ info from the past 5 years, or the 13″ iPad

      1. Well, it’s actually only partially true. Apple doesn’t break out sales, but American mobile carriers sure do. And the original article neatly lays out all the numbers in detail. While American market isn’t equivalent of global market, trends most certainly should NOT be ignored. And according to American carriers’ numbers, iPhone 5c sold over 12 million in America, while none of the competitors’ models were able to reach 10 million.

        These numbers aren’t conjecture; they are derived form the data provided by the mobile carriers, who unlike Apple DO break out the numbers quarterly.

        1. The comment wasn’t referring just to you, but to RP as well. You were correct (Apple doesn’t break out numbers), he was wrong (no one knows sales numbers), and the missing part in the two statements was the numbers reported by the American mobile carriers.

          I hope this clears it up.

  4. IF this chart is correct, it shows a spike of 8 points in the spread between “last year’s model versus this year’s model” in favor of the 5C. Combine that with the higher margins for the 5C versus the 5, and it seems like Apple made the right decision.

  5. Another bullshit report from Apple cocksucker Dilger. Apple owns <15% of smartphone market, so it's virtually impossible for iPhone 5C to have outsold Galaxy S4. Good job lying about it though.

    1. Look at the numbers. They aren’t made up. They are publicly available for everyone, including the Truth Tellers. Saying it ain’t so doesn’t automatically make it not so.

    2. the vast majority of Android market share are from cheap android handsets in Asia, many of them low brand ‘white box’ phones. Bastardized or old versions of Android is just used to replaced the OS in low ram, low powered flip phones in Asia as it’s ‘free’ and comes tens of millions of bucks of free advertising provided by Google. Many of them like millions of ‘O’ phones sold in China can’t even run stock android apps. Thats’ why web usage, app purchases, even map usage is very low for android.

      Apple controls a big chunk of the high end smart Phone market and simply trashes turd like phones like the S4.

      (BTW the so called ‘top of the line’ Galaxy S5 runs on an OS made by Google , on processors – Snapdragons – made by Qualcomm and designs stolen from Apple. What did Samsung invent?

      Meanwhile apple designs the OS, the processor and the hardware design of their phones. )

      1. [my post got truncated! probably due to greater/less than signs. What I said, was:]

        Um no. Apple owns less than 15% of the WHOLE Mobile phone market. Not some arbitrary sub category that shifts in definition and grows to include all phones of which it is a subset (mostly because Apple has raised the bar).

        Apple had aimed for 1%. But Apple has greater than 50% of the profits.

    3. Don’t you find it embarrassing, standing there with your fingers in your ears, going ‘lalalalalalalalalalala’ as loudly as you can, while small children point at you and laugh?
      Jackass.

  6. Maybe I’m the only one here who remembers MDN itself saying that the 5c was a huge mistake when it was announced.

    Maybe I’m the only one here who remembers MDN saying that anyone in their right mind would skip the 5c and buy the 5s instead.

    1. And you might also remember the outpouring of consent and disagreement with MDN’s presentation of SteveJack’s opinion. MDN runs a successful website. That doesn’t mean their take on Apple news neither is nor needs to be right.

  7. I’m in the mobile business and this article does not explain if the 5C was a flop or not, because it doesn’t focus on the right numbers. Sales reported by the manufacturers (incl. Apple, Blackberry, Nokia and the others) are of “sell-in units”, which means, units sold to mobile operators, distributors and retailers. These volumes are usually negotiated and, in the case of Apple, almost forced (“either you buy these volumes or don’t have iPhone at all”). What shoud define if a product is a flop (or not) is the “sell-out units”, the units that are actually purchased by the end user. For these, I can tell you, based on my experience, that the 5C was WELL below expectations, because mobile operators and retailers are still today sitting on unsold stock of 5C bought in Q4. Having said that, I leave it to the markets (and the fans) to create their own opinion on the product.

    1. So wait a moment. If initial inventory is forced upon a carrier it starts to sound like Apple thought they knew what demand would be and had too high of expectations. That may be true, right? But then after inventory has been agreed upon by the carriers they alone control (I expect Apple helps pay for) marketing spend. So if in the quarter in question Samsung pays the carriers to advertise the G3/G4/G5/NextBigThing and therefore there is less marketing taking place for the iPhone 5c, “demand” will suffer. Which suggests that “sell-out” count isn’t enough to understand demand. I think.

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