1 Possibly Bad Sign for Apple's iPhone 5c in China

Following investor concerns over Apple's (NASDAQ: AAPL  ) iPhone 5c in China, there are reports that the device isn't selling well and that third-party retailers have begun to heavily discount the plastic model just a week after launch. That's not a good sign for the iPhone 5c's prospects in the Middle Kingdom. The good news is that the flagship iPhone 5s is selling quite well.

Before the iPhone 5c was made official, investors were hoping Apple would release a device at a lower price point to target the emerging markets like China. In hindsight, this expectation may have been misplaced, and the iPhone 5c is still positioned near the top of the market's pricing spectrum.

That's not necessarily a bad thing, though, since Apple's pricing strategy is largely why the Mac maker grabs more than 70% of the smartphone industry's operating profits. In today's episode of Tech Teardown, Erin Kennedy discusses the iPhone 5c's prospects in China with Evan Niu, CFA, and Jamal Carnette.

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  • Report this Comment On September 29, 2013, at 11:32 PM, CrazyDocAl wrote:

    So Apple's biggest claim to fame for investors is they have the largest profit margins on their products. As long as it works and people knowingly buy your product I guess it's a good thing. But I wonder how much Apple will discount the 5c (since they have lots of room to) and I wonder how long it will be before 5c iPhones discounted to be sold in the Chinese market make their way to eBay to be sold in the US?

  • Report this Comment On September 29, 2013, at 11:37 PM, houmanq17 wrote:

    The problem might be that the $700 iphone 5c is worth more than the average monthly salary of a chinese worker..

  • Report this Comment On September 30, 2013, at 2:30 AM, canadamike wrote:

    OMG - this ruined my day. a bad sign for a phone in china.... OMG! OMG! OMG! all you lemmings that care about this crap make me laugh out loud. GET A LIFE!

  • Report this Comment On September 30, 2013, at 4:42 AM, DanManners wrote:

    You guys are great. You are like the children I never wanted.

    Apple is going down another $ 315 like last year. The 5C will be selling at much lower price points. The 5s great sales don't matter as there are no phones to sell. By the time they come out with them, the phones excitement will wear off with Samsung announcing better features on the Galaxy 5. People will hold off buying a phone and wait for the new Galaxy.

    Tim Cook is the worst CEO. Watch the stock drop to $ 200 and hope that he changes his mind on cutting his wrists.

  • Report this Comment On September 30, 2013, at 4:47 AM, DanManners wrote:

    After hitting almost 497 after the 5s Weekend sales were announce last week, Apple is down around $ 20. This is in 4 days. Expect Apple to drop to 440 by the end of this week and from there it will retest 385 as bad news like you just reported never stops coming in.

    Hopefully the media like yourselves, will hammer Apple on the same topics over and over driving the price down and making shorts very happy. If anything at all comes out like someone in Peoria dropped their phone and there was a scratch on the back, you will be on it to blast Apple.

    NO doubt Tim Cook needs to get canned. As the worst CEO in the world for Apple, he is proud that the stock is dropping so much.

    Try the FOOLISH news letter services. They made me tens of millions of dollars. I now have 10 bentleys and will soon quit my job at McDonalds.

  • Report this Comment On September 30, 2013, at 10:13 AM, jhart9393 wrote:

    Hi All,

    Just wanted to warn that this guy DanManners posts insanely negative comments on all Apple article. It is obvious that he is shorting the stock and hoping his comments impact the price somehow.

    My personal opinion is that things look pretty good at this time. The 5s is the key phone. That is the new model and they are selling every unit they can make. The 5c is the 5 replacement and in that context, it is doing very well and was a great strategy. So comparing year to year, it looks like sales and margins will be up and DanManners may have to cover his shorts.

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