iPhone 5c sales disappointing, but iPhone 5s is in short supply: Verizon

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By Reuters | Updated: 18 October 2013 12:03 IST
Verizon Communications Chief Financial Officer Fran Shammo said Apple Inc's iPhone 5c (Review) "undersold expectations" in the third quarter, while its pricier iPhone 5s (Review I Pictures) was in short supply.

The "5c is in plenty supply" and "if you generally talk to each of the carriers I think they'll tell you the same thing," Shammo told Reuters in an interview Thursday after the company reported its third-quarter earnings.

Apple, which has its phones made by contract manufacturers overseas, is cutting production orders for the cheaper plastic-backed iPhone 5c just a month after its launch at the same time as the iPhone 5s, a source familiar with its supply chain told Reuters on Wednesday.

The production cutback was seen by analysts as a rare misstep for Apple, which typically only launches one phone at a time and tends to see massive demand for its devices, particularly during the quarter of their launch.

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Consumer reception to the iPhone 5s appeared to have been much stronger, at least at Verizon Wireless, the biggest U.S. mobile operator.

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Verizon's Shammo said scarcity of the iPhone 5s was a "significant issue" for Verizon Wireless, which missed Wall Street's third-quarter expectations for net subscriber additions as a result.

Shammo said iPhone 5s customers who were still waiting to receive their phones would be reflected in its numbers in the fourth quarter.

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But he declined to say how much of an overall effect the shortage of the iPhone 5s had on the company's third-quarter figures.

About 51 percent of Verizon's smartphone activations in the quarter were for iPhone customers.

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"What we don't know is how many customers would have come that didn't because they knew there was a shortage," he said.

© Thomson Reuters 2013

 
REVIEW
  • Design
  • Display
  • Software
  • Performance
  • Battery Life
  • Camera
  • Value for Money
  • Good
  • Solid in all departments
  • iOS ecosystem remains unrivaled
  • Bad
  • Not as future-proof as the 5s
  • Questionable value for money
 
KEY SPECS
Display 4.00-inch
Processor Apple A6
Front Camera 1.2-megapixel
Rear Camera 8-megapixel
RAM 1GB
Storage 16GB
Battery Capacity 1507mAh
OS iOS 7
Resolution 640x1136 pixels
NEWS
VARIANTS

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Further reading: iPhone 5c, iPhone 5s, Apple, Verizon
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