Analyst: iPhone 5C to phase out iPhone 5, due on China Mobile in Q3

By , Aug 19, 2013

Tim Cook unveils iPhone 5C (Martin Hajek 002)

KGI Securities’ Ming-Chi Kuo has built a reputation of the most reliable Apple analyst out there who has accurately predicted a number of Apple product updates (sans the timetable).

He’s out with a new report for clients Monday morning, sharing interesting observations regarding Apple’s upcoming iPhone 5C, also known as the budget iPhone.

The biggest takeaway: the iPhone 5C will be priced between $400 and $500, which makes it a mid-tier handset rather than cheap, and is expected to be released to China Mobile’s 700+ million subscribers in Fall, potentially accounting for penetration of TDD-LTE to 25 percent in iPhone 5S and 35 percent in iPhone 5C shipments…

He thinks (via AppleInsider) the plastic iPhone 5C will be offered in 16/32GB flavors and priced $200 less than the iPhone 5S. The analyst is also expecting Apple will axe the iPhone 4 because its hardware is inadequate to run on iOS7 and is adamant the iPhone 4S will live on at least through year ed.

The 5C, Kuo writes, should phase out the current-generation iPhone 5 this Fall due to similar features (sans the plastic enclosure) as the 5C has been designed as a mid-range replacement for the iPhone 5.

We’ve learned that the iPhone 5 line will be terminated from 4Q13, while the iPhone 4S line will carry on. From this, we infer that iPhone 5C is launched to replace iPhone 5. In other words, the 5C model will be positioned as midrange. We forecast its retail price to be US$400-500.

We expect iPhone 5S, iPhone 5C, iPhone 4S and iPhone 4 will fall into the price ranges of US$600-700, US$400-500, US$300-400 and US$200-300, respectively, in the new product cycle.

In a nutshell, the iPhone 5C will be to the iPhone 5S what the iPhone 4S is to the iPhone 5, a cheaper alternative with not as sophisticated hardware and features.

iPhone 5S (gold, two-up, left angled)

On a final note, Kuo is projecting 5.2 million iPhone 5S and 8.4 million iPhone 5C sales in the third quarter of this year. As for the Christmas quarter, Apple should ship 28 million iPhone 5S units and 18.7 million iPhone 5C units.

Apple should announce both the iPhone 5S and iPhone 5C at a media event on September 10.

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  • zachf914

    What do you mean the iPhone 4 hardware is inadequate to run on iOS 7? My beta tests have shown it to run pretty darn well for the only A4 device on it.

    • Sean Cua

      I think he means that Apple is trying to make the 3.5″ iOS devices obsolete that’s why he says the hardware is inadequate.

      • zachf914

        Well that doesnt make sense because the 4S seems to have little to-no problems on it whatsoever.

      • Sean Cua

        It’s not that but they’re trying to cut off the devices with 3.5″ screens so that the developers will start developing their apps optimized for 4″ devices.

  • Phil Randle

    Have to say that Gold/Champagne iPhone 5S is growing on me.

    • Sokrates

      true.

    • pauleebe

      Way better than an actual “gold”

  • Guest

    rwart

  • D.

    Love the blue 5C

  • Apanizo2

    At least it’s not ridiculous like some of the leaks we got last year, I’d buy any of those.

  • Gorgonphone

    oh wow the 5 is about to become a classic..lol

  • Gorgonphone

    so no black or white 5C???

  • n0ahcruz3

    Hahaha Even apple agrees that iphone 5 sucks! Lol just put a higher MP and faster processor on the 5S apple and its all good and all other goodies. 5C is the worst idea at that price range and comes with a plastic enclosure not really a budget phone.

    • Gorgonphone

      cook ‘n ive dont like you cause you exposed them perfectly

    • quitcherbichinn

      and on what planet exactly do you live? dude YOU are the only delusional one here.

      • n0ahcruz3

        Well first of all here in asia most people purchased their phone without contract. Most people cant afford 600-700$ phones. The iphone 5C costing 400-500 is still expensive considering it’s suppose to be apple’s “budget” iphone which is made of plastic by the way. Let me ask you. Why is samsung dominant in china? Dont be fooled by your fanboyism its a fact.

      • quitcherbichinn

        samsung is dominant because they give away their garbage phones. if they didn’t give them away for free or severely mark them down and eat a loss they wouldn’t be dominant. if they charged what the phone cost between parts, manufacturing, R&D, advertising and every cost associated then the phone would cost $400 or more and how many samsung crap phones would be out there? Apple doesn’t have to do that because their phone is desirable, as facts and sales prove. and if you think the iPhone 5 sucks then you are delusional. the internals are the best of any phone out there. do you own one? i’m sure you’ll now claim to own one because liars are all over these blogs. i’d feel safe to bet you don’t own one and you are talking out of your backside.

      • n0ahcruz3

        Most ridiculous comment. First of all samsung has more profit than apple according to their earnings call. 2nd of all iphone 5 doesnt have the best internal of any phone. Why is apple making cheap iphone now? Because they want marketshare especially in china where apple’s marketshare is dwindling. And they havent sign any contract with china mobile which has atleast 700 mil. Subscribers which samsung ofcourse has a huge market share. how many iPhone 5 were sold? dont include the 4 and 4S. and why is apple phasing out the iphone 5? if the said rumors are true.

      • quitcherbichinn

        i like this quote i found…i think it says it pretty well…..

        “So you are saying that with a
        zillion more products than Apple has, including new releases in the
        quarter you are comparing, they finally just now made more profit? In a
        quarter Apple really didn’t release anything new in?

        I’d be embarrassed if I was Samesung. I guess copying can only get you so far…”

        it’s obvious you have a hardon for samsung so why bother trolling an iPhone site? you just embarrass yourself.

      • n0ahcruz3

        Facts are facts. I use an iphone by the way. I dont really like samsung but you cant deny their success. This quote is also interesting ” Imitation is the sincerest form
        Of flattery. Isnt it that Steve Jobs said “we shamelessly copied other technology” something like that.

      • quitcherbichinn

        i like how you pull your facts out of your ass. it’s pretty cool.

      • n0ahcruz3

        lol dont be ridiculous, look it up the internet. im not making those up, and u didnt even answer my question on how many iphone 5 apple sold. and why they are phasing out the iphone 5 just like what they did to ipad 3, based on the rumor.

        ps. i think Steve JObs said it like this “We’ve always been shameless about stealing great ideas” and “good artist copy, great artist steal”.

      • quitcherbichinn

        then by all means find a valid source and post it.

        Q4 2012 – 27.4 million iPhone 5′s sold
        Q1 2013 – 47.8 million

        Q2 2013 – 37.4 million

        i’ve seen the article showing percentages of what iPhone model sold what and i know that is what you are using as your “facts” that people don’t like the iPhone 5. my argument to your flawed OPINION is the fact the economy sucks, no one has a job..the list goes on…so a great deal of people would spend $0 or $99 before they would spend $199 or more on a phone. if the iPhone 5 was the only phone available or was offered at the $99 price point i believe you would see much different figures. you would still see the same number of sales even though only 1 model was available. so your belief no one likes the iPhone 5 is not only delusional but it is flat out wrong. and again it is your OPINION, not a fact.

      • n0ahcruz3

        Source please. Yeah about samsung making more profit than apple its a fact. Too lazy to find source i think iDB posted it or BGR.

      • quitcherbichinn

        GOOGLE.COM

        there are THOUSANDS of sites reporting the same FACTS i posted. they come from Apple’s earnings call for each quarter.

        i didn’t dispute samsung made more profit in ONE quarter than Apple. however it never happened before and it won’t happen again. you compare a quarter when samsung released new product and apple hadn’t released anything new for 6 months. in the end Apple has more cash and value than samsung could ever hope to have. so if them “winning” 1 quarter equates them beating apple or being better or w/e to you….yeah that’s just sad.

        and i don’t see any proof of your Steve Jobs quote claim. so again keep pulling “facts” out of your ass dude.

      • n0ahcruz3

        Where is your source on q4 2012 iphone sales and please break it down iphone 5 sales iphone 4S and 4. Shipped doesnt equate to sales. Steve jobs really said that bwahaha.

    • Kenny Woodard

      Agreed. HTC One and Samsung S4 will be the same price or cheaper by the time this comes out. They are both much better options.

  • Krisztián Dér

    Apple has always thought of fragmentation as an arch enemy, therefore terminating the iphone 5 with 4 inch screen instead of the 4s with 3.5 seems pretty dumb and senseless to me.

    • Chaka10

      “fragmentation [of the software] as an arch enemy…” That’s why it makes sense to discontinue the 4 if it doesn’t run iOS7

      • Krisztián Dér

        True, but the different screen sizes are a factor of fragmentation as well, arent they? Its hardware, but can cause confusion in software as well. Kill 4/4s, and all that remains is the choice of 5, 5s and possibly 5c, all with equal screens.

  • n0ahcruz3

    Funny if this came out to be true. Apple phasing out the 5. I guess the sales of the 5 were lower than apple expected, during the wwdc or earning call they dont say how many iphone 5 were sold & they dont break down the sales of the iphone. Its like the iPad 3 fiasco lol. Ive said this before and i’ll say it again.. iPhone 5 sucks. Que iphone 5 apologist in 3..2..1.