Linked by Thom Holwerda on Tue 15th Jan 2013 09:12 UTC
Apple The New York Times also chimes in on the reduced orders, and they have numbers which seem more realistic. "Apple does appear to be cutting back on orders for its latest iPhone from its manufacturing partners, as Nikkei of Japan and The Wall Street Journal reported earlier. Paul Semenza, an analyst at NPD DisplaySearch, a research firm that follows the display market, said that for January, Apple had expected to order 19 million displays for the iPhone 5 but cut the order to 11 million to 14 million. Mr. Semenza said these numbers came from sources in the supply chain, the companies that make components for Apple products." Some suggest this is stock manipulation, and while that is an exciting story to be sure, would respected and well-informed newspapers like The Wall Street Journal and The New York Times participate in something like that? Somehow, I highly doubt it. A far more logical explanation, as NYT details, is that the iPhone simply isn't doing overly well outside of the US.
Thread beginning with comment 548849
To view parent comment, click here.
To read all comments associated with this story, please click here.
RE[3]: Who knows
by JAlexoid on Tue 15th Jan 2013 12:26 UTC in reply to "RE[2]: Who knows"
JAlexoid
Member since:
2009-05-19

To put simply the Mobile Network Operators are to be blamed here, they have gotten incredibly greedy and expecting the iPhone 5 to just sell have massively overpriced it on really terrible contracts. This applies here in the UK, I know a lot of people have not upgraded because of this very reason and are still running their old iPhones some are looking to move to Android.


No. To put it simply - in US the operators are free to charge you stupid fees on your devices and then charge you your usual $100 per device. In EU that practice "does not fly", so the operators are done supporting Apple with their cash and are letting the customer pay the full actual price.* Why? Because when you buy an iPhone you are not likely to be proving additional revenues for the operator to cover for the subsidy(considering OTT, premium SMS messages and similar)

*- iPhone5 off contract is about €750 and it's subsidy constitutes €10-€15 in your monthly bill. That is a considerable hole between the price the operator pays to Apple and you pay back.(I suppose Apple only gets €500 when sold in bulk to operators)

Reply Parent Score: 5

RE[4]: Who knows
by mutantsushi on Tue 15th Jan 2013 13:03 in reply to "RE[3]: Who knows"
mutantsushi Member since:
2006-08-18

apples sells unlocked no-subsidy iphone5's direct to US consumers for a bit less than 500 euros (16GB) or 575 euros (32GB). carriers must get them for substantially less. but apple certainly is selling them for more than android or windows phones, and without subsidies price-conscious consumers will choose other options. even in the us, other brands are doing increasingly well.

Reply Parent Score: 2

RE[5]: Who knows
by saso on Tue 15th Jan 2013 19:33 in reply to "RE[4]: Who knows"
saso Member since:
2007-04-18

apples sells unlocked no-subsidy iphone5's direct to US consumers for a bit less than 500 euros (16GB) or 575 euros (32GB).

When calculating European prices from US prices, always keep in mind to include sales tax, as that's what people here are used to seeing. The 500/575 figures is thus quite misleading. Most countries here have around 20% sales tax, so that'll be 600 and 690 Euros.

Reply Parent Score: 3

RE[5]: Who knows
by JAlexoid on Wed 16th Jan 2013 03:53 in reply to "RE[4]: Who knows"
JAlexoid Member since:
2009-05-19

They have to pay import duties for their devices, different fees for importing a cellular device and since they are have to have a minimal of 2 years warranty their price is substantially higher in bulk when sold in EU, compared to US.

Reply Parent Score: 2