Why everyone was wrong: Apple’s iPhone 5c ate up Android while Google’s Moto X flopped

“Last fall, Google’s Motorola group unveiled its Moto X and Apple released its middle-tier iPhone 5c,” Daniel Eran Dilger writes for AppleInsider. “Across the board, pundits and reporters portrayed the 5c as a grave mistake that got everything wrong while lavishing Google’s Moto X with praise. Why were they so incredibly wrong?”

“While we don’t have exact sales numbers for either model, it is now clear that iPhone 5c was a remarkable success, not just as 2013’s second most popular smartphone of the holiday season (after Apple’s top of the line iPhone 5s), but also in its intended strategic roles as both an mid-market smartphone and a compelling Android alternative,” Dilger writes. “Speaking to analysts during Apple’s Q2 earnings conference call, chief executive Tim Cook stated that 69 percent of iPhone 5c buyers were new to iPhone, while 60 percent had switched from an Android phone.”

“Apple managed to pull off something that had previously seemed completely impossible: it continued to sell premium, luxury class $650 iPhones at prices three times higher than the volume sales of the overall smartphone market, without making significant concessions on either margins and profitability or, more importantly, without giving up valuable market share,” Dilger writes. “Despite all the media pampering for Google, the reality in this case was that Motorola lost over $700 million for Google in just the last six months of Moto X sales.”

Much more in the full article here.

66 Comments

    1. why? analysts NEVER own up to their bogus guesses/analysis. if anything, they will go “see, it’s a total flop, if it was a product people wanted, it should have sold 2x that number”

      1. Fanatical? In this sober forum, this Acropolis of technocracy? Surely a strongly worded exchange amongst devotees of reason and progress counts as intellectual passion, rather than zealotry.

      2. Yeah, the “everyone” that was wrong often included MDN itself, which on more than one occasion used its “Take” to batter Apple leadership for the supposed mistake of the iPhone 5c. I notice no “Take” on this article. Retractions aren’t exactly this site’s forte.

        ——RM

    1. Trolls ignore Appleinsider and dismisses it as a fanboy rant site. Seriously. Bring up the facts or points from Ai on the major tech sites or media and you are quickly dismissed for using Ai as a source.

  1. Once again Analysts perpetrated the false equivlency of comparing a single manufacturer to a plethora of hardware makers using cheap parts to produce low margin phones and grabbing an OS because it was free please tell me which phone maker precisely is “android” so i might check his sales figures and invest in his company .Google can’t count because its giving android away. the Smith that you make a fortune by loosing money to gain market share assumes there is one entity gobbling up the market not 200 minuscule players scrambling for the 25% of market profit apple leaves on the table . kudos to the android switchers welcome to the apple community ,get busy hallowing into the rest of your hardware needs and don’t look back your safe now .

      1. Sorry, I get excited and forget to edit.

        Glad you liked the content enough to tough it out. The tab key does not work in dialog boxes so it throws me off.

    1. I was holding out hope that it wasn’t.

      We all expected a myriad of colors for the iPhone at some point, those watching Apple could easily observe the trend.

      In retrospect it is seeming even more absurd to me than it did then to think Apple would give iPhone 5C away with contracts. $100 was easily a fine price. Even a low price to match that market.

      Next…iPads ? iPad mini in colors? Fairly obvious? And obvious that they would sell like crazy.

  2. Bottom line : All you idiot pundits, tech journalists and analists don’t have a clue, or a brain that’s capable of understanding Apple.

    That’s not new it only gotten much worse.

    Apple is and will continue to kick ass and GROWTH, is written all over the Apple story, you just can’t see or understand that giants can still expand and therefore grow.

    1. Breeze ,
      what they can’t seem to get is that Apple produces a desirable product and not a commodity like bologna or drywall screws.
      The size of the bank deposits are bigger than most companies yearly gross revenue and thats the one topic that gets buried over and over. I really wonder who encourages this bunch to publish this drivel about market share ? Could it be our schools are turning out “journalists” who are only capable of regurgitating each other? Bring back thoughtful commentary for gods sake ! (why can’t Rachel Maddow be a tech writer)

      1. I think the problem is that the people that hire these journalists don’t require any credentials. Whoever will work for peanuts can try out. He who gets the clicks keeps the job.

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