Apple IPHONE

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Since the Apple's stock has been declining and their sales have been plunging, do you think they will do a discount or sale soon on their new Iphone 5's too boost their business and their market? Just curious cuz I've been eying the Iphone 5 for a while and waiting for the price to drop. Any insight is appreciative! Thanks

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Is this like the chicken and the egg question? You must have missed it, but it seems that the discounting already started around Christmas time.

Are discounted iphone 5 deals a signal to sell AAPL?

Unless you are looking for another round of price cutting, which might not happen, since they started cutting down on production recently to have enough until the next release of the iphone.

hmmm, I did a search for iphone 5 and I guess I didn't see that thread

Need to sharpen those search skills.

Best Buy worked a deal with Apple and started to sell iPhones for $150 during xmas
WalMart subsidized iPhone 5s during xmas and sold them for $127 to compete with Best Buy who was forced to PM.

Sams Club also had the deal (since they are owned by WM).

Expect more discounting on AAPL products and faster product cycles all the way around. AAPL is going as far as discounting their laptops at Best Buy Discounted Computers.

While it's not a discount per se, the Straight Talk offering at WalMart does speak to the AAPL trend downward and probably more discounting on and off contract. Typically the newest iphone was UNTOUCHABLE to the MVNOs like Staight Talk, but as of a couple of weeks ago you can go buy one at retail price, $650+ and start using it month-to-month on Straight Talk right away Fatwallet discussion on Iphone 5 @ ST . It is probably also an indicator of AAPL recognizing a slight trend in more customers moving toward the MVNO market.

Get a nexus 4 or windows phone.

For a long time aapl was keeping the price high and offering only limited top end hardware designs- this is how they achieved incredible profits. Now with new leadership they are broadening their offerings, which means they will be offering lower tier items. Once you start competing in the lower tiers, you have to offer more discounts.

Won't happen until the next iphone comes out!

wp746911 said:   For a long time aapl was keeping the price high and offering only limited top end hardware designs- this is how they achieved incredible profits. Now with new leadership they are broadening their offerings, which means they will be offering lower tier items. Once you start competing in the lower tiers, you have to offer more discounts.

I'd say mid to high range operating hardware at a premium. Most of the time there was always someone ahead in the hardware game at that had the title of top.

Considering that the share of iPhone activations on AT&T and Verizon, in relation to total smartphone activations, are actually up from July 2012 thru December 2012, I doubt you'll see iPhone 5 be discounted until the next gen comes out. iPhone 4 supplies were constrained, and it looks like that is the model people were activating. iPhone costs significantly less to manufacture than the 5, and the profit margin on a 4 is higher than a 5, but ASPs will be lower. That could explain why AAPL exceeded analysts expectations on earnings, but came in light on revenue, and also came in just shy of the estimated 48-50 million units sold (actual 47m).

July - Sept: Verizon activated 6.8m smartphones, 3.1m were iPhones
Oct - Dec: VZ activated 9.8m smartphones, 6.2m were iPhones

July - Sept: AT&T activated 6.1m smartphones, 4.7m were iPhones
Oct - Dec: T activated 10.2m smartphones, 8.6m were iPhones

Internationally iPhones are still growing in sales, but are being outpaced by cheaper phones like HTC, ZTE, CoolPad, but in North America, sequentially iPhone looks to be gaining marketshare, at least with post-paid subs. In the pre-paid and MVNO segment it's difficult to get a sub to pay $600+ for a phone, and if Apple could crack that market it would have to be in the form of a very affordable phone, and if they can't hit a number like $200 they just won't do it, and it definitely won't be the latest greatest iPhone even at $300, a nerfed 3GS maybe.

Where Apple really screwed up last quarter was in iMac sales. Y/Y there was a huge decline in iMac sales, and that can easily be pointed to the fact that they couldn't fulfill an iMac order in October and November. Even if you wanted to buy a new iMac today, you're waiting 2+ weeks for a 21.5" and 3+ weeks for the 27". Apple also said they do not anticipate meeting the demand of iMacs in the 2nd quarter. There has to be a component in the iMac that is constrained that resulted in Apple cutting orders of other components, and we saw tons of reports of component suppliers getting their orders cut. We can now deduce the component order cuts were related to iMac, not iPhone. If we take 700k iMac units with an ASP of $1500, we find $1.5B, and had that revenue been in the 1Q results, we could be looking at a very different AAPL stock today. There is cannibalization happening, but the huge miss is mostly attributed to supply not being able to meet demand.

iPad Mini availability is still a 1+ week wait for delivery. Apple expected to reach a demand balance this quarter. If they can't build enough iPad Minis now, we probably won't see a refresh until at least Summer which could negate talk about Apple refreshing that product twice a year.

In abstract Tim Cook needs to get the component supply chain straight, and Jony Ive needs to step up and deliver one incredible iOS 7, and a beautiful form factor. Considering the management shake up in the 2nd half of 2012, we are getting impatient with the next revolutionary step at Apple. Apple probably is banking on Jon Ive's vision, which we have no idea about, and thus won't yet surrender the price of iPhone 5 before launching a new model.

dienliv said:   Considering that the share of iPhone activations on AT&T and Verizon, in relation to total smartphone activations, are actually up from July 2012 thru December 2012, I doubt you'll see iPhone 5 be discounted until the next gen comes out. iPhone 4 supplies were constrained, and it looks like that is the model people were activating. iPhone costs significantly less to manufacture than the 5, and the profit margin on a 4 is higher than a 5, but ASPs will be lower. That could explain why AAPL exceeded analysts expectations on earnings, but came in light on revenue, and also came in just shy of the estimated 48-50 million units sold (actual 47m).

July - Sept: Verizon activated 6.8m smartphones, 3.1m were iPhones
Oct - Dec: VZ activated 9.8m smartphones, 6.2m were iPhones

July - Sept: AT&T activated 6.1m smartphones, 4.7m were iPhones
Oct - Dec: T activated 10.2m smartphones, 8.6m were iPhones

Internationally iPhones are still growing in sales, but are being outpaced by cheaper phones like HTC, ZTE, CoolPad, but in North America, sequentially iPhone looks to be gaining marketshare, at least with post-paid subs. In the pre-paid and MVNO segment it's difficult to get a sub to pay $600+ for a phone, and if Apple could crack that market it would have to be in the form of a very affordable phone, and if they can't hit a number like $200 they just won't do it, and it definitely won't be the latest greatest iPhone even at $300, a nerfed 3GS maybe.

Where Apple really screwed up last quarter was in iMac sales. Y/Y there was a huge decline in iMac sales, and that can easily be pointed to the fact that they couldn't fulfill an iMac order in October and November. Even if you wanted to buy a new iMac today, you're waiting 2+ weeks for a 21.5" and 3+ weeks for the 27". Apple also said they do not anticipate meeting the demand of iMacs in the 2nd quarter. There has to be a component in the iMac that is constrained that resulted in Apple cutting orders of other components, and we saw tons of reports of component suppliers getting their orders cut. We can now deduce the component order cuts were related to iMac, not iPhone. If we take 700k iMac units with an ASP of $1500, we find $1.5B, and had that revenue been in the 1Q results, we could be looking at a very different AAPL stock today. There is cannibalization happening, but the huge miss is mostly attributed to supply not being able to meet demand.

iPad Mini availability is still a 1+ week wait for delivery. Apple expected to reach a demand balance this quarter. If they can't build enough iPad Minis now, we probably won't see a refresh until at least Summer which could negate talk about Apple refreshing that product twice a year.

In abstract Tim Cook needs to get the component supply chain straight, and Jony Ive needs to step up and deliver one incredible iOS 7, and a beautiful form factor. Considering the management shake up in the 2nd half of 2012, we are getting impatient with the next revolutionary step at Apple. Apple probably is banking on Jon Ive's vision, which we have no idea about, and thus won't yet surrender the price of iPhone 5 before launching a new model.


good analysis, iphone sales broke all records with the iP5, however they speculated 50k units and missed their goal (47k) so the speculators that bought stock based on the speculation sold when the numbers came out, spawning all these BS headlines

Nokia Lumia 920 tops the “Best sellers in Cell Phones with service plan” list at Amazon USA. http://nokiapoweruser.com/2013/01/20/updated-white-sold-out-red-...

They would sell more iPhone 5 and iPhone 4 if they would allow them to be jail broken.

jimates said:   They would sell more iPhone 5 and iPhone 4 if they would allow them to be jail broken.
What would you do with a jailbroken iPhone? Not sure how many would want to do so.

rpi1967 said:   jimates said:   They would sell more iPhone 5 and iPhone 4 if they would allow them to be jail broken.
What would you do with a jailbroken iPhone? Not sure how many would want to do so.
Most people that want to buy iPhones for BYOD use on no contract want jail broken phones. Tough to pay top dollar and be locked down without it.

jimates said:   rpi1967 said:   jimates said:   They would sell more iPhone 5 and iPhone 4 if they would allow them to be jail broken.
What would you do with a jailbroken iPhone? Not sure how many would want to do so.
Most people that want to buy iPhones for BYOD use on no contract want jail broken phones. Tough to pay top dollar and be locked down without it.

You can buy an unlocked iphone. So you want to go through all the effort to use a no contract carrier but it seems most cellphones brought with a contract are locked even android phones.
I thought the reason someone wanted an unlocked iphone is to run some non-apple approved software.



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