UK Carriers Frustrated At Lack Of 5s Supply

20 September 2013

BBC News:

However, networks contacted by the BBC pointed out that supplies of the new 5C, a lower-cost phone and newcomer to Apple’s range, were plentiful.

Insiders from two of the companies told the BBC they suspected Apple was trying to drive sales of the cheaper 5C model, but that their own figures suggested customers had been hesitant to place orders.

Unfortunately, we don’t know who these ‘insiders’ are but they must be pretty stupid. What evidence is there that the low stock levels for the 5s are artificial? More importantly, why would Apple want to incentivise 5c orders over the 5s, when the 5s profitability is likely to be much higher?1

1 Margins on the 5c could, theoretically. In dollar terms, though, the 5s has to be adding more to Apple’s bottom line than the 5c.