by Christopher Freeburn | January 28, 2014 12:36 pm
Here are your Apple rumors and AAPL news items for today:
Handset Mix: During a conference call discussing Apple’s (AAPL) first fiscal quarter results on Monday, CEO Tim Cook said that demand for the iPhone 5c “turned out to be different than we thought,” AppleInsider notes. The iPhone 5c — which is essentially 2012’s iPhone 5 repackaged in plastic cases in five colors — was launched in September alongside the flagship iPhone 5s. Apple reported that it sold 51 million iPhones globally during the last quarter. While that was a company record for iPhone sales, it was well below the 55 million iPhone sales that Wall Street had been expecting. Apple does not break out individual iPhone model sales numbers, but Cook said that the iPhone 5s had outperformed expectations due to its Touch ID fingerprint scanner. “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,” Cook observed. Apple initial estimates for iPhone 5s sales left its scrambling to make enough to meet demand, potentially denting its sales during the quarter, especially in North America, where consumers were substantially more interested in the flagship iPhone, BGR notes. “Our North American business contracted somewhat year over year,” Cook admitted during the conference call. “And if you look at the reason for this, one was that as we entered the quarter, and forecasted our iPhone sales, where we achieved what we thought, we actually sold more iPhone 5s than we projected.” Rumors that Apple was cutting iPhone 5c orders to its suppliers emerged just weeks after the new iPhones launched last year. The pricier iPhone 5s was reportedly outselling the iPhone 5c two-to-one in October. Recent rumors indicate that Apple will scrap the iPhone 5c when it launches new iPhones this year, returning to metal casings on all of its handsets.
Commentary: After Apple released its quarterly results on Monday, Apple stock dropped in after-hours trading. While many analysts worried about the company’s falling iPhone sales in North America, real estate mogul Donald Trump took to Twitter (TWTR) to upbraid Apple for failing to increase the size of the iPhone’s screen, TechCrunch notes. “I predicted Apple’s stock fall based on their dumb refusal to give the option of a larger iPhone screen like Samsung. I sold my Apple stock,” Trump tweeted. In a separate tweet, he noted that “Samsung’s size much better.” A symphony of recent rumors indicate that Apple plans to increase the size of the iPhone 6’s screen to more than 4.5-inches, a substantial increase above the 4-inch screen on the iPhone 5s. Other rumors indicate that Apple will launch two iPhones this year, one with a screen under 5-inches and another with a screen over 5-inches. The latter would present Apple’s first step into “phablet” territory.
New Choice: Apple TV users who like a high-energy drink will be thrilled. Apple’s video streaming box has added Red Bull TV, a network run by the maker of the popular beverage, Variety notes. The network focuses on sports and action entertainment programming. Red Bull TV was originally launched in 2010. Apple TV users will be able to stream its programming without charge. The network also has apps for iOS and Google’s (GOOG) Android devices It’s YouTube channel boasts 3.25 million subscribers.
For more about the company, check out our previous Apple Rumors stories.
Source URL: https://investorplace.com/2014/01/tuesday-apple-rumors-tim-cook-concedes-weak-iphone-5c-sales/
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