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iPhone 5s tops sales at big US carriers
Not surprisingly, some analysts tried every which way to downplay the fact that Apple sold 9 million iPhones in just three days. Some claimed, with no evidence to back it up, that the 9 million figure included devices shipped to carriers, but not yet purchased to consumers. Still others were quick to point out that the 9 million figure encompassed iPhone 5c sales, while noting that Apple last year did not include weekend sales of the iPhone 4s in its iPhone 5 weekend launch tally. While analysts can tinker with numbers and speculate all they want, it's damn near impossible to argue that Apple's most recent iPhone launch was anything but an overwhelming success. All that said, a survey conducted by Canaccord Genuity reveals that the iPhone 5s is the top-selling smartphone across all four major US carriers. What's more, the iPhone 5c is the second-most popular smartphone on both AT&T and Sprint. On Verizon and T-Mobile, the iPhone 5c is the third-most popular smartphone. AppleInsider adds: According to the report, September brought "very weak" demand for HTC's flagship HTC One, while the Taiwanese company posted the first quarterly loss in its history earlier Friday. The story was similar for BlackBerry, which saw "very soft" sales of its new Z10 and Q10, and Motorola, where sales for its refreshed Droid lineup declined after Apple's new iPhones became available. Even more impressive is that the iPhone 5s remains in tight supply across a number of major US cities. So not only is the device the most popular smartphone on the market, but also demand still far outstrips supply. If anything, it stands to reason that the 9 million figure Apple announced last week would have been even higher had Apple's initial supply of iPhone 5s devices been greater.
Best Buy offering $50 gift cards with iPhone 5c purchase
Best Buy has announced on its website that it is giving a $50 gift card to anyone who purchases an iPhone 5c with a two-year contract. The offer is good between now and close of business on Monday, October 7th and available only in-store or with in-store pickup. Both the 16 GB and 32 GB models in any color are valid for the $50 gift card offer. It's also important to note that the $50 gift card can not be used to pay for part of the iPhone, and is only valid towards future purchases. It's rare to see significant promos like this so early in an iPhone's release cycle, so if you're in the market for a 5c, now's the time to snap it up from Best Buy.
gdgt's best deals for October 2nd: Apple iPhone 5c, Samsung Galaxy Note 10.1
Ready to save some cash on your tech buys? Then you've come to the right place. Our friends at sister site gdgt track price drops on thousands of products every day, and twice a week they feature some of the best deals they've found right here. But act fast! Many of these are limited-time offers, and won't last long. Today's top deals both earned high gdgt Scores. Apple's new iPhone 5c, which is pretty much a colorful iPhone 5, is already available at a discount, and the capable Samsung Galaxy Note 10.1 tablet has nosedived from its MSRP. Hoping to grab one or the other? Join gdgt and add the gadgets you're shopping for to your "Want" list -- every time there's a price cut, you'll get an email alert!
Switched On: The why of the 'i' buy
Each week Ross Rubin contributes Switched On, a column about consumer technology. For the past few years, the media has met iPhone introductions with skepticism that precedes great sales success. This has become such a cliché that the superstitious might worry what would happen should new iPhones be introduced to universal praise. But there was no cause for worry as far as the iPhone 5c and 5s were concerned. In the weekend following their initial availability, Apple reported that it sold 9 million iPhones, which set a new record for the company. A few of the reasons behind this success likely had less to do with the strength of the product per se. The new iPhones were launched in 11 countries as opposed to nine in the previous launch. The fast-growing market of China was one of those. It was also the first launch to include Japan's NTT DoCoMo. And back in the U.S. this marked the first time that new iPhones had been launched on all four major US carriers -- a significant shift from the product's first years as an AT&T exclusive. In fact, T-Mobile, the newest carrier to participate in an iPhone debut, has been particularly aggressive about promoting its Jump service that encourages upgrades, and its competitors have introduced their own upgrade-facilitation programs that grease the upgrade wheels for Apple and others.
This week on gdgt: Apple's new iPhones, Loewe's Speaker 2go and Steam Machines
Each week, our friends at gdgt go through the latest gadgets and score them to help you decide which ones to buy. Here are some of their most recent picks. Want more? Visit gdgt anytime to catch up on the latest, and subscribe to gdgt's newsletter to get a weekly roundup in your inbox.
Analysts, pundits try to downplay Apple's record iPhone launch weekend
Last weekend, Apple sold nine million new iPhones, blowing away analyst expectations and setting a launch weekend record in the process. In fact, the nine million tally nearly doubles Apple's previous iPhone launch record. Suffice it to say, the iPhone 5s and 5c are bonafide hits and, once again, Apple is struggling to manufacture iPhones fast enough to meet demand. Considering that many pundits and analysts recently expressed supreme confidence that Apple had peaked and was prepped for a decline, that's not too shabby. Now you would assume that even Apple's most vehement critics wouldn't be so bold as to turn a blind eye to nine million units sold in just three days, right? And yet, as sure as the sun rises in the east, pundits from two mainstream publications attempted to turn Apple's overwhelmingly successful iPhone 5s and 5c launch into cause for concern. First up, we have Sandy Cannold from ABC News whose article headline itself suffers from a dearth of logic; "Why Record iPhone Sales Might be Rotten for Apple", the headline reads. There's a pun in there, I guess that's gotta count for something, right? Cannold's article reads in part: To me though, all this over-the-top fanfare and even the record-breaking first weekend of sales could actually be cause for concern... I fully concede that Apple is going to make billions in profit from the sale of these new devices and the company is in no danger of becoming Blackberry or Nokia. But the reason I am voicing a bit of doubt is that it seems like Apple is now trying to squeeze every last bit of profit it can out of an aging, shall we call it, iStone. Let's face it this new iPhone is just an upgrade, a refresh, dare I say a sequel. I am sure that true tech devotees will tell me how wrong I am, that this new device is smarter, faster, revolutionary, etc. But to me and millions like me it seems a lot more evolutionary. It looks a whole lot like the last iPhone and the one before that and the one before that too. The "evolutionary but not revolutionary" theme is often trotted out by folks who fail to realize that revolution is often the amalgamation of many smaller evolutionary improvements. As for Apple attempting to squeeze "every last bit of profit out of an aging" device, Cannold has it backwards. Apple is impressively able to increase its profits, year after year, by putting out devices that continuously set a new bar for excellence while making the majority of existing devices seem woefully outdated. Cannold also writes that "this is no longer the Apple of Steve Jobs" insofar as Apple under Tim Cook hasn't upended an industry lately. "I firmly believe that Steve Jobs," Cannold continues, "wouldn't have been satisfied to only pocket billions upon billions on tweaked products alone." First, it might be instructive to look back at Apple's iPod years. On that note, Harry McCracken of TIME recently penned a piece highlighting "The Myth of Steve Jobs' Constant Breakthroughs." Second, to call the iPhone 5s, sporting iOS 7 along with a number of hardware enhancements a slight tweak misses a larger point -- namely that the device's 64-bit processor and Touch ID software could be setting the stage for something larger. Also downplaying Apple's impressive iPhone launch was Rolfe Winkler of The Wall Street Journal who wrote the following earlier this week. Investors should be careful, though, not to extrapolate opening-weekend sales strength to future growth rates. For starters, Apple is including two "new" iPhone models in its opening-weekend sales figures for the first time. Last year, customers who opted for a new iPhone 4S, a model first released the prior year, weren't counted in the company's opening-weekend tally. This is despite the fact that it was sold for similar terms as this year's 5c, which is included. This is true, but hardly cause for concern. The fact that Apple released two new iPhone models and was able to spur demand should be looked at as a positive. The iPhone 5c may be a repackaged iPhone 5, but it's effectively being touted and viewed as a new, fresh, and affordable alternative to the iPhone 5s. As for the iPhone 4s not being included in last year's iPhone 5 launch numbers, that's a valid point, but lets try and guesstimate how many iPhones Apple might otherwise sell on any given weekend. Now Apple doesn't release sales figures on a device-by-device basis, so let's start by taking look at sales figures from one of Apple's recent quarters, say, Apple's most recent holiday quarter covering a 13-week period ending on December 29, 2012. During that quarter, Apple sold a record 47.8 million iPhones. Dividing that by 91 days (13 weeks) yields approximately 525,000 iPhones sold per day, or 1.57 million units over a three-day period. That being the case, even if we look at Apple's most successful iPhone quarter in history and subtract an average three day iPhone haul from the nine million total, we're still left with an impressive 7.43 million units. And that's with tightened supply, no less. Returning back to the nine million unit figure, analyst Gene Munster of Piper Jaffray also tried to downplay the figure by assuming, with no evidence, that the figure included units shipped to stores but not yet sold to consumers. Munster's take on this may have to do with the fact that he anticipated weekend sales of 5-6 million units and his subsequent attempt to save face. The thing is, Apple has historically only counted sales to end users. To that end, Fortune's Philip Elmer-DeWitt relays that Goldman Sachs analyst Bill Shope pointed out that Apple this year "used the same sales recognition rules it has always used." What's more, some have scoffed at the increase in iPhone sales by pointing out the obvious -- namely that the iPhone was available in more countries at launch than in previous years. The thing is, that was hardly a secret and analysts presumably took that into account when tabulating their iPhone launch sales estimates. Elmer-DeWitt also relays an astute point from Matt Lew who writes that Apple's nine million figure doesn't take into account the number of iPhone devices ordered online and not yet delivered to consumers. And seeing as how iPhone shipment times were a few days at best, Apple's iPhone launch total sales -- incorporating the back-ordered phones where the customer clicked "buy" in the first three days -- may in fact be higher than the nine million figure. Elmer-DeWitt concludes with an astute point: No other smartphone manufacturer's sales figures are subjected to this kind of scrutiny. Take, for example, Samsung. You won't see analysts questioning Samsung's unit sales numbers for the Galaxy S3 or S4. Nobody writes notes to clients asking what percentage of those sales were sell-in or sell-through. Samsung doesn't get this kind of scrutiny because it doesn't tell anybody -- not analysts, not investors, not the SEC -- how many smartphones it sells. And that's what's wrong with this picture. Apple's iPhone sales aren't fluffed with "buy 1 get 1 free!" promotions, but are legit sales of two brand new devices that have received overwhelmingly positive reviews. The reality is that nine million iPhones is impressive no matter how you look at it.
Microsoft wants you to buy their products, to start offering cash for iPhones
Earlier in the month, Microsoft -- which would love for you to pick up one of its new second-generation Surface 2 tablets -- began offering iPad owners a paltry US$200 or more for a trade-in in hopes that you'd actually fall for the ploy, grab the cash and buy one of their beleaguered tablets. Now Forbes is reporting that Microsoft will be offering you a minimum of $200 for your iPhone 4s or iPhone 5 at some of the US and Canadian Microsoft Stores. In this case, the trade-in promotion is part of the #timetoswitch campaign, and Microsoft is hoping that you'll ditch your nice and relatively new iPhone for a Windows Phone instead of an iPhone 5s or 5c. Not that Microsoft seems desperate or anything, but they also have an online campaign that started a few weeks ago where they'll take any Apple, Android or BlackBerry device in return for a Visa gift card. I wonder how much they'll give me for that third-generation iPod classic that's sitting on the shelf... Forbes' Kelly Clay said it best: "Apple's impressive sales figures of the iPhone 5s and iPhone 5c in the past few days mean millions of consumers are not only freshly tied into new contracts but overtly prefer the iOS platform over Windows as they waited to purchase the new line of iPhones -- and avoided purchasing a Windows Phone when they had the chance." It's beginning to look like Microsoft's business strategy for the near future is to become the leading vendor of used smartphones and tablets.
Regional carriers picking up the iPhone 5s, 5c on October 1
Demand is still huge at Apple Stores and the major carriers are reporting depleted stocks of the new iPhone 5s and iPhone 5c, but that's not keeping nine of America's regional carriers from announcing that they'll be launching the latest iPhones on their networks on October 1. So far, those carriers include: Appalachian Wireless Bluegrass Cellular C Spire Cellcom GCI MTA Nex-Tech Wireless Ntelos Strata Other carriers have also announced that the new iPhones are on the way, but haven't yet announced a firm launch date. Apple's complete list of carriers that currently offer the iPhone can be found on this support knowledge base page.
iPhone 5s and 5c shipping to regional carriers on October 1st, but not to US Cellular
When your name is on a Major League Baseball stadium, and you're a mobile operator, you carry the iPhone. Unless you're US Cellular, that is. For reasons that cannot be comprehended by mere mortals, one of the United States' largest regional carriers still isn't offering the iPhone in any variant, despite promising back in May to carry Apple products before the year's end. In fact, things have gotten so bad over at USCC that its Facebook page has gone dead silent since September 13th, with customers far and wide ranting in the comments section about the carrier's inability to get the one phone they all want. Making matters worse for USCC is the fact that Appalachian Wireless, C Spire, Bluegrass Cellular, Cellcom, GCI, MTA, Nex-Tech Wireless, Ntelos and Strata are all lined up to start selling both the iPhone 5c and iPhone 5s on October 1st. We suppose even more could be added as time rolls on and the supply / demand balance rights itself, but it's probably high time for US Cellular holdouts to head on over to a rival. Patience only gets you so far, you know?
Daily Update for September 24, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Gazelle saw 210% more Samsung trade-ins during iPhone 5s launch weekend
Apple experienced a record sales weekend for the launch of the iPhone 5s and 5c, so this news probably isn't surprising. Consumer electronics recycler Gazelle saw a lot of action during the same time, with almost four times as many trade-ins on launch day compared to that same time frame during the iPhone 5 launch last year. It might be a number of Samsung smartphone owners jumping ship to the new iPhones, as Gazelle reported a 210 percent jump in trade-ins of Samsung phones during the launch weekend. During launch day on September 20, Gazelle made five offers per second between 10 and 11 AM ET. That's a whopping 18,000 people in that hour who decided to trade in their existing phone for cash to use on a new iPhone. The company also reported that the average value per trade-in is US$50 higher this year than last year. Gazelle also surveyed more than 3,000 consumers about the new iPhones, asking questions to determine why people considered an upgrade to the new Apple smartphones. It found that 36 percent of those who said they were upgrading to the iPhone 5s said they were getting it because they were due for an upgrade, and only 16 percent said they were upgrading for the Touch ID fingerprint scanner. Among iPhone 5c upgraders, 29 percent said they were going to the colorful phone for the better camera, with an equal number upgrading because of a better price.
IHS: iPhone 5s component tally reaches $199, iPhone 5c costs $173
Though it has a new camera module, faster processor and fingerprint sensor, the components in the new iPhone 5s are only slightly less expensive than those in the iPhone 5, says IHS. Not surprisingly, the iPhone 5c is cheaper than either the iPhone 5 or the iPhone 5s. According to AllThingsD, which got an advanced look at the IHS report, the iPhone 5s costs US$199 to build, as compared to $205 for last year's iPhone 5. Components for the 16 GB iPhone 5s cost Apple $191, with another $8 tacked on for assembly. The jump to 64 GB of storage in the 5s bumps up the price by $11, bringing the final cost to $218 for the model. By using a colorful polycarbonate shell instead of aluminum, Apple is able to trim the cost of the iPhone 5c to $173 for the 16 GB model and $183 for the 64 GB model. These prices include $7 for assembly. Echoing what was said by iFixit, IHS says the new iPhone models are very similar. "I would say that they're almost the same phone, except that the 5s has the fingerprint sensor, the A7 processor and some newer memory chips that consume less power. Beyond that, they're basically the same," said IHS analyst Andrew Rassweiler.
Daily Update for September 23, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
The iPhone 5s is greatly outselling the iPhone 5c
OK, so we know that Apple sold a record 9 million iPhones over the weekend, but what you might find surprising is that data provided by analytics firm Localytics shows that in the US, the more expensive iPhone 5s is appearing a whopping 3.4 times more often than the iPhone 5c. The chart at the top of this post shows that in the US, the iPhone 5s makes up about 1.36 percent of all iPhones activated in the US market across all carriers. For the iPhone 5c, the number is only about 0.31 percent. To quote Localytics, "That means that the iPhone 5s outshines the 5c by a factor of 3.4x, a clear indicator that the early adopters are favoring the high-end 5s compared to 5c." It's not just Americans who are picking up the iPhone 5s in record numbers. Localytics also provided numbers for international carriers and iPhone 5s usage is outperforming the iPhone 5c by a factor of 3.7x. In Japan, the numbers are even more skewed, with a ratio of about 5x. Eric Slivka at MacRumors points out that this disparity in sales probably won't last in the long run, saying "the lower-cost iPhone 5c will likely improve its relative performance over time as the bulk of customers who are likely to be more budget-conscious purchase new phones as they become upgrade-eligible.
Apple adjusts its quarterly earnings outlook on strength of tremendous iPhone sales
In the face of pundits who thought Apple's iPhone success had plateaued, Apple sold a record number of iPhones this past weekend -- 9 million units to be exact. In fact, Apple's iPhone sales this past weekend were so great that Apple this morning filed a regulatory filing with the SEC slightly tweaking its initial financial forecasts for the quarter. Apple expects total company revenue for the fourth fiscal quarter to be near the high end of the previously provided range of $34 billion to $37 billion, and expects gross margin to be near the high end of the previously provided range of 36 percent to 37 percent. Apple's fiscal quarter ends on September 28.
Apple airs new 'Greetings Too' iPhone 5c ad
During the Emmys last night, Apple aired a new cut of it's "Greetings" iPhone 5c ad. "Greetings Too" features many of the same scenes -- with some new ones added -- of "colorful" people saying hello on their iPhone 5c's. In addition to the new cut on television, Apple has posted Greetings Too and an extended cut of the first Greetings ad on YouTube.
A series of unfortunate events at the Pasadena Apple Store today
Today was an exciting day at the Apple Store in Pasadena, Calif., as the launch of the new iPhone 5s and 5c turned ugly. The LA Times is reporting that at least 200 people were waiting in front of the store this morning for a chance to buy one of the new phones when several fights broke out. Two people, ages 23 and 43, were arrested for fighting in line outside of the store before it even opened. Then around 9 AM, another fight started, this time involving a contender for worst person in the world. A man hired several van loads of homeless people from a downtown Los Angeles homeless mission with the promise of paying them $40 if they'd wait overnight in line. When the man left the store with several iPhones this morning, the people he hired began fighting with him, saying they weren't being paid enough. To defuse the situation the police removed the man from the premises, leaving the homeless people he'd hired stranded at the Apple Store without being paid. Dominoe Moody, one of the people hired by the unnamed man, said between 70 and 80 homeless people were recruited and brought to the store. A lieutenant with the Pasadena Police, Jason Clawson, told the LA Times the department isn't investigating the incident saying "It's not a police issue. It's a business issue."
Editor's Letter: Slow and steady wins the race
In each issue of Distro, Executive Editor Marc Perton publishes a wrap-up of the week in news. In this week's Distro, we take a closer look at Apple's two new iPhones, the 5c and 5s. The 5c, despite being less impressive when it comes to features and specs, may actually be the more popular of the two models. As Myriam Joire says in her review, the pastel-hued phone is "a gorgeous handset that brings a breath of fresh air to the iPhone lineup. For many people, it might even be a better choice than the iPhone 5s." That, of course, doesn't mean the 5s isn't worth considering. In her review of Apple's new flagship model, Myriam declares it the best iPhone ever made and says that Apple "took a good product and made it better through hardware upgrades, new features and completely revamped software." If you have an iPhone 5, should you upgrade? You'll have to read the full review to find out. Also in this week's Distro, we check in with audiophile and Head-fi.org founder Jude Mansilla. His favorite classic gadget? It's a tie between the Newton MessagePad and a portable CD player paired with a good set of headphones, which he says "started me on the journey that turned into Head-Fi.org."
iFixit tears down the iPhone 5c
Last night, iFixit started to take apart the iPhone 5s, and now the repair shop has fixed its sights on the iPhone 5c. This latest guide by iFixit delves into the differences between the iPhone 5c and both the 5s and 5. It kicks off with some commentary on the meaning of the "c" in the phone's name -- does it stand for "color," "cheaper," "childish" or something else? The teardown points out in several places that the iPhone 5c is very similar to the iPhone 5. It shares many of the same hardware specs and is basically an iPhone 5 with a plastic casing. It's not an iPhone 5 clone, though, and actually shares some features of the iPhone 5s, like a snug-fitting display assembly, a bigger battery and a very similar internal case design. Just like the iPhone 5s, the 5c is given a repairability score of 6 out of 10. According to iFixit, removing the screen and accessing the battery are moderately easy. Replacing these components, though, is no cakewalk with extra-strength adhesive getting in the way of the battery and antenna.
Apple: Demand for iPhone 5s and 5c has been 'incredible'
Everyone on Wall Street pretty much freaked last Monday when Apple didn't announce any pre-order numbers for the total units of iPhone 5c's sold. That's nothing new -- analysts on The Street are a jittery, throw-you-under-a-bus crowd. But the fact that Apple has remained silent is neither good nor bad. However, today that silence has been broken a little bit with the company telling AllThingsD: "Demand for the new iPhones has been incredible and we are currently sold out or have limited supply of certain iPhone 5s models in some stores." Will that assuage Wall Streets worries? Probably not. But I sense a well-deserved "I told you so" from Apple coming on when they do announce the new iPhone's sales launch numbers.
