Linked by Thom Holwerda on Mon 14th Jan 2013 15:14 UTC
Apple The Wall Street Journal: "Apple has cut its orders for components for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday. Apple's orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said. The Cupertino company has also cut orders for components other than screens, according to one of the people." The WSJ is usually very well informed about Apple matters (and Japanese business new Nikkei reports something similar), so it's a safe assumption that they're not making this up. What, exactly, this means, we don't know; perhaps a new model already? Seems strange they would switch to a different screen this quickly, though. Android (more specifically: Samsung) keeps on growing, so it's only inevitable that Apple would feel a sting there at some point. We'll know for sure on the 23rd, when Apple's latest quarterly results come rolling in.
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Prices and choice
by steve_s on Mon 14th Jan 2013 17:02 UTC
Member since:

Rumours are just that, so who knows what the truth really is.

The problem with the iPhone 5 as I see it is that it's so damned expensive.

An unlocked iPhone 5 in the UK at £529 costs you £130-140 more than a Samsung Galaxy S3, and £250 more than a Nexus 4. Those two devices are the high-end Android choices, the iPhone's big competition.

It you look at Apple's "low-end" option, an 8GB iPhone 4 is still £40 more than a 16GB Nexus 4. The iPhone 4 still carries what is effectively a high-end price for a 2.5 year old device. IMHO Apple are lucky that the Nexus 4 is rare as rocking-horse poop.

My girlfriend is currently looking to buy her first smartphone and doesn't want a contract. I'd steer her towards the iPhone on the basis that, IMHO, it's a better user experience but the simple reality is that the price is ruling it out of consideration. Given that the S3 is still fairly expensive, and the Nexus 4 is unavailable, she's seriously considering getting a dumb-phone.

There's also a choice issue. With the iPhone there essentially is none. You've got the slightly taller iPhone 5, or the 4 and 4S which are nearly physically identical to each other. No big screen option. No small phone option.

I don't see Apple ever having as wide a range of devices as Samsung. That's not their style at all. I really wouldn't be surprised to see a "low-end" iPhone appearing soon, and a lower price-point for the next high-end iPhone.

Reply Score: 4

RE: Prices and choice
by MOS6510 on Mon 14th Jan 2013 17:10 in reply to "Prices and choice"
MOS6510 Member since:

They also retain more value, so you could take in account selling it in a few years.

An iPhone 3GS still goes for over €100.

Reply Parent Score: 2

RE[2]: Prices and choice
by Laurence on Mon 14th Jan 2013 17:16 in reply to "RE: Prices and choice"
Laurence Member since:

They also retain more value, so you could take in account selling it in a few years.

An iPhone 3GS still goes for over €100.

That's quite a gamble though as it assumes that the phone isn't lost, stolen nor damaged (yeah you could have insurance on the device, but then you have the excess fee eating into your resale margins).

Plus that money would only end up going towards the next upgrade, so you're not actually knocking 100euro off the buying cost of this phone.

Reply Parent Score: 3

RE[2]: Prices and choice
by steve_s on Mon 14th Jan 2013 19:51 in reply to "RE: Prices and choice"
steve_s Member since:

There's no guarantee that the high resale prices of iPhones will continue.

In part it's a price that's been supported by pent-up demand for new iPhone models - purchases made by folks who cannot afford a new device. It's a price supported by fashion. It therefore seems likely that the resale prices for iPhones will go down over the next few years.

One should also note that €100 doesn't cover the price premium you're paying for the iPhone in the first place. It's nowhere near the £250 extra you're paying for an iPhone over a Nexus 4, and also still significantly less than the £130-140 over a Galaxy S3.

Besides, to resell your device and fetch a decent price it has to be pristine. We're talking about a glass phone here. The chances of the phone surviving intact decrease over time. A dropped phone can easily have it's screen shattered. A phone kept in a handbag can easily gather scratches from keys and other items.

Reply Parent Score: 5