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iPhone 5C NEWS ~ Apple’s iPhone 5C Sells MORE SmartPhones than Samsung’s Galaxy S4, any Blackberry, any Microsoft, all Android Flagships, all Moto X, all Google’s Flagships ~ Yet the MEDIA calls the iPhone 5C a “Flop.” What’s wrong with that picture? Sounds Like Politics (2nd update) πŸŽπŸŽπŸŽπŸŽπŸŽπŸŽπŸŽ

July 11, 2014

🍎 The 5c Failure is a figment of the imagination of the "talking heads," spewed by some sloppy reporting from the Wall Street Journal, particularly attributed to Lorraine Luk, Eva Dou and Ian Sherr, and subsequently regurgitated by Brad Reed and Chris Ciaccia of BGR with regularity.

🍎 Ever since it became clear that Apple’s high-end iPhone 5S was more successful than the 5C, it’s particularly bewildering in the media’s "brass ballsiness" because Apple’s iPhone 5c was indisputably more successful than the middle-tier iPhone model Apple sold last year.

🍎 Apple’s iPhone 5C Sells MORE SmartPhones than Samsung’s Galaxy S4, and Blackberry, and Microsoft, plus all Android Flagships, all Moto X, all Google’s Flagships ~ Yet the MEDIA calls the iPhone 5C a "Flop." What’s wrong with that picture?

🍎 One More Byte of this 5C Apple. If the iPhone 5C were a separate Enterprise, the iPhone 5C delivered 12,500,000 units per calendar quarter, this equates to 50,000,000 units sold annually. Think about it, one item, one device, folks are buying the 5C (the iPhone model that the WallStreet critics are labeling a flop) at a clip of 50 million iPhone 5C per year.

🍎 Reports have it, Apple’s profit margins overall are about 38.5%. Lets assume the iPhone 5C profit margin is 32.5% (15% less profitable than the Apple’s average, a guess on my part) for the $550 iPhone 5C. Therefore this “iPhone 5C Company” if it were a separate company, Annual performance results:

🍎 Gross Sales: 50,000,000 iPhone 5C

🍎 Gross Sales: $27.5 Billion

🍎 Net Profits: $8.937 Billion

🍎 iPhone 5S, iPhone 5C, iPhone 4S Facts: The exact iPhone sales ratio is a closely held secret inside Apple, data from multiple sources, like AT&T, Verizon, Sprint, T-mobile activation statistics, compiled by J. M. Manness, dispolay statistics about the Winter Quarter iPhone Sales globally. We have summarized the data as follows

πŸ“² 6.4 million iPhone 4S sold
πŸ“² 12.8 million iPhone 5C sold
πŸ“² 31.9 million iPhone 5S sold
πŸ“² 51.1 million iPhones 3 models sold
πŸ“² 9.0 million Samsung’s Galaxy S4 sold
πŸ“² 8.2 million all Nokia’s Windows Phones sold
πŸ“² 8.2 million all Microsoft Windows Phones sold
πŸ“² 2.2 million LG’s G2 flagship sold
πŸ“² iPhone 5S outsold 5C by a ratio of 2.5:1 sold
πŸ“² iPhone 5C outsold Galaxy S4 by a ratio of 1.4:1 sold
πŸ“² iPhone 5S outsold Galaxy S4 by a ratio of 3.5:1 sold
πŸ“² iPhone 5S+5C outsold all 4 Android Flagships, be ratio of 1.6:1 sold

🍎 Recall Apple announced the 5C & 5S on September 10, 2013 and released the 5C & 5S for a huge joint-opening on the same day on , 9 million iphones were sold in the opening weekend. Later we learned that of the 9 million sold, 6 million were the top of the line iPhone 5S, and 3 million iPhone 5C.

🍎 Without citing any sales figures, which is pretty basic investigation technique for a story, Reed and Ciaccia have taken to calling iPhone 5c a "flop," as if saying something outrageous over and over again, makes falsities factual. Sounds like what our politics do, to make us forget the truth, by repeating falsehoods. Never Works, expect for the uninformed.

🍎 Unsurprisingly, Reed and Ciaccia described iPhone 4S as a failure in late 2011, iPhone 4 as a failure in early 2011 and spoke of iPhone 3GS as a failure before that, if for no other reason than its writers simply do not like the iPhone, even with 450,000,000 iOS Sales, with iPhone sales selling at a clip of 50,000,000/iPhones per calendar-quarter, representing over 80% of all the SmartPhone profits for all Brands and types combined globally.

🍎 "To be honest," wrote BGR’s Zach Epstein back in 2009, "we can’t remember ever having seen Apple fail so massively in this department." The "failure" of iPhone 3GS’ branding was ostensibly so incredibly bad that BGR coined it a "megafail," specifically because it wasn’t clear enough whether there should be a space between the "G" and the "S." Apple, it seems, can’t help but "fail" in various ways as it chows down the majority of the mobile industry’s profits building the world’s most desirable phones and expanding the world’s most important and sustainable ecosystem for apps and accessories.

🍎 Apple’s fiercest critics spent most of 2013 complaining that the company wasn’t "innovative enough," but its latest high-end iPhone, the 64-bit iPhone 5s With Touch ID, managed to outsell every other flagship smartphone on any platform, by far, becoming the world’s best selling handset.

🍎 Imagine the team winning the Super Bowl or World’s Cup being labeled a "failure" by sports commentators who groused about perceived flaws in how the winning team played, while detailing the "whisper number" of points that "sports analysts" had expected the team to score, expressing great disappointment in the winning team’s inability to score what somebody had guessed might be possible.

🍎 If sportswriting were as disingenuous and misleading as the tech industry’s bloggers, it’d be really hard to tell what teams were wining versus who was simply the team favored by a particular observer of the games being played.

🍎 Apple’s iPhone 5C was actually more successful than every other Android flagship smartphone, redefining what "flop" can possibly mean. Would Microsoft’s Zune been a "flop" if it had outsold any model of iPod? Would Microsoft’s Surface or HP’s Slate PC, Motorola’s Xoom, Samsung’s Galaxy Tab or Google’s Nexus 7 have still been flops if any of them had outsold iPads? Would Blackberry, Windows Phone, HTC’s One, Google’s Moto X or LG’s G2 been flops had any of them outsold Apple’s iPhone?

🍎 Apple’s iPhone 5C "failure:flop" outsold all Blackberry, all Windows Phone and every Android flagship in Q4, 2013. Combine this with the iPhone 5S outselling Apple’s iPhone 5C by a margin of Two:One on the Opening Weekend.

🍎 From the constant harping about the supposed "failure" of Apple’s iPhone 5C, you’d think the phone is selling poorly. The reality is that middle tier model, while dramatically less popular than Apple’s top of the line iPhone 5s, still managed to outsell every Blackberry, every Windows Phone and every Android flagship in the winter quarter, including Samsung’s Galaxy S4.

🍎 iPhone 5S, iPhone 5C, iPhone 4S Facts: The exact iPhone sales ratio is a closely held secret inside Apple, data from multiple sources, like AT&T, Verizon, Sprint, T-mobile activation statistics, compiled by J. M. Manness, dispolay statistics about the Winter Quarter iPhone Sales globally. We have summarized the data as follows

πŸ“² 6.4 million iPhone 4S sold
πŸ“² 12.8 million iPhone 5C sold
πŸ“² 31.9 million iPhone 5S sold
πŸ“² 51.1 million iPhones for 3 models sold
πŸ“² 9.0 million Samsung’s Galaxy S4 sold
πŸ“² 8.2 million all Nokia’s Windows Phones sold
πŸ“² 8.2 million all Microsoft Windows Phones sold
πŸ“² 2.2 million LG’s G2 flagship sold

🍎 Apple’s iPhone 5C sold twice as many units as all Blackberry smartphone sales combined (6 million), more than all of Nokia’s Windows Phone smartphone sales in the winter quarter (8.2 million), and in fact, all of Microsoft’s Windows Phones sold globally in the winter quarter (slightly more than 8.2 million, as Nokia makes 90% of the world’s Windows Phones).

🍎 Samsung’s flagship Galaxy S4 reportedly sold just 9 million units in the winter quarter. If you do the math, this means the iPhone 5C sold 142% more iPhones than the Galaxy S4.

🍎 LG’s heavily marketed flagship G2 reportedly sold just 2.3 million units in the winter quarter. That indicates that Apple’s mid tier iPhone 5C outsold Samsung’s Galaxy S4 and LG’s G2 put together.

🍎 It’s certainly possible that the actual number of iPhone 5C units Apple sold could be less than estimated. Even if for argument’s sake Apple sold many more higher-end 5s iPhones for every 5C than the app analytics firms are seeing, it would still mean that Apple’s single iPhone 5C model was one of the top most successful smartphone designs created and sold in 2013.

🍎 As the ratio of 5C’s to 5S’s that Apple sold goes down, the amount of revenue it made from iPhone sales overall increases. There’s no way around the fact that Apple sold more premium smartphones above $400 (the only kind it sells) than anyone else. The only question is to what degree Apple’s iPhone 5C helped the company sell more phones to consumers who would otherwise have considered moderately priced Android models or Apple’s own lower end iPhone 4S, an outdated model lacking a Lightning connector or support for 4G LTE.

🍎 In fact, Apple’s high-end iPhone 5S has been so remarkably successful, in spite of the supposed cheapening trend in smartphone buyers’ tastes, that Apple’s critics have been forced to pounce upon the supposed "failure" of the iPhone 5C instead; a phone that sells so "terribly" that it also outsold the ostensibly successful Samsung Galaxy S4 on half of America’s top carriers, and pushed every other Android phone out of the top U.S. sales charts entirely, from the first month it went on sale.

🍎 The primary data point supporting the "5C Failure" propaganda campaign is that the cheaper model hasn’t been able to outsell Apple’s top of the line 5S, as if Apple would prefer to sell the 5c and collect at least $100 less per sale.

🍎 Note that the war on iPhone 5C focuses entirely upon Apple’s smartphone model mix, a topic that has never raised any interest among any Android or Windows Phone smartphone makers, none of whom detail the unit sales of each price tier in the phones they sell. Few smartphone makers even provide an official figure for the overall numbers of units they sell.

🍎 Grave concerns about Apple’s product mix were raised as a distraction from reality, and continue to grow in their fevered pitch as the reality of Apple’s leading market position in premium smartphones becomes more evident, from taking 80 percent of premium phone sales in China to 76% of all smartphones in Japan and 45 percent of all smartphones sold in the United States.

🍎 Proponents of the 5c Failure Meme have even twisted Tim Cook’s words to suggest that Apple’s incorrect initial expectation that it would sell a larger mix of cheaper models in 2013 really meant that Apple was upset that buyers weren’t as interested in its middle tier phone as its high end iPhone 5s.

🍎 Imagine General Motors being upset to find that the majority of its customers preferred to pay a 20% premium for an option package that included fancier trim, greater horsepower and a lucrative technology/convenience package.

🍎 No doubt GM would be ecstatic to discover such unexpectedly favorable market demand from its customers, even if it meant a mid-season retooling to accommodate buyers’ desires for more premium vehicles, regardless of their higher price in our hypothetical economy where few other car makers could earn anything on sales of their cheaper, bare bones cars, nor manage to introduce a successful luxury model.

🍎 If you prefer lemonade stand analogies to cars, Apple is selling all the premium organic lemonade it can produce at prices more than two times higher, on average, than everyone else can sell any sort of drink.

🍎 Note that Apple isn’t just asking for more money; consumers are readily paying twice as much to buy iPhones. That’s indicative of a failure on the part of Android. Either the entire world has been fooled, or Android is simply not as desirable as its proponents claim. Samsung does appear to be blowing its promotional billions ineffectually, but it’s hard to imagine that the majority of the world’s most sophisticated consumers are being fooled by one company to pay that much extra, were there no real difference.

🍎 Apple subsequently makes more money, by far. It also has far more capital available to expand into a variety of other offerings, were demand for its lemonade to ever decline (and there’s no credible signs of this happening so far). If demand were to shift toward orange juice, beer or even cheaper lemonade, the best capitalized lemonade stand would certainly be best positioned to shift its operations to accommodate that change.



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