Tim Cook Officially Admits iPhone 5c Didn’t Meet Expectations

In the latest earning’s call made with analysts and Wall Street investors, Tim Cook has admitted that the iPhone 5c didn’t meet sales expectations, and the majority went with iPhone 5s. The WSJ also says Apple is planning to remove the plastic exterior in the 5c and later release a 4.5-inch and 5-inch iPhone model in 2014.

Cook said the iPhone 5c officially failed, and the company underestimated the demand for the 5s as it bypassed sales expectations.
It took us some time in order to build the mix that customers were demanding. As a result, we lost some units for part of the quarter in North America.
A record 51 million iPhone units were sold in Q4, 2013, but the company didn’t reveal the contributing handsets by their models. The rumor of a cheaper handset for the mass consumers last year didn’t help 5c either.

Just so you remember, the 5c costs $549 without contract, and $99 with a 2-year contract. However, the main distraction is that the iPhone 5c is available for just a $100 extra, and it includes the 64-bit A7, M7 motion coprocessor as well as the Touch ID.

Tim Cook said:
I think the iPhone 5s, people are really intrigued with Touch ID. It’s a major feature that has excited people. And I think that associated with the other things that are unique to the 5s, got the 5s to have a significant amount more attention and a higher mix of sales.
He also said in the Q and A section that Apple doesn’t have any problems with new ideas, called Touch ID important for mobile payments and that the iPod Touch business was declining.

What do you think ?



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