iPhone 5c May Be A Flop For Apple, But It’s A Huge Success For Pegatron

iPhone-5C-martin-hajek

Tim Cook might have claimed that iPhone 5c demand “turned out to be different than we thought” on Apple’s recent quarterly earnings conference call, but there’s one company that doesn’t seem too upset about the 5c’s performance: Apple supplier Pegatron.

Announcing a 22% jump in earnings for the fourth quarter, Pegatron is crediting mobile devices with its improved marketplace performance. Pegatron’s manufacturing contract with Apple — for manufacturing both the iPhone 5c and iPad mini — accounts for 40 percent of its total revenue.

Although the company previously made some older iPhone models, 2013 was the first year in which Pegatron was the primary manufacturer of a new iPhone model.

The company expects shipments of smartphones, tablets, and game consoles to drop between 15% and 20% in the first quarter this year, but notes that this is an expected seasonal reduction.

  • aardman

    I see what your editors did there, sneaking the F word into the headline so as to get a rise out of the readership and garner more views. You shameless click whores you. :-)

    • moofer

      Yet on Saturday, this same site ran a headline that read “Every Other Smartphone Maker Would Kill To Have A “Flop” Like The iPhone 5c” – Sounds like a flip-flop on flopping. If you listen closely, you can hear the click of me removing cult-of-mac from my newsfeed.

  • moofer

    …and yet, just the other day, you regurgitated a really well-written article from AppleInsider claiming it wasn’t a flop. http://www.cultofmac.com/271211/every-smartphone-maker-kill-flop-like-iphone-5c/

    You idiots can work on making up your mind while I remove you from my feed.

  • AAPL_@_$101_Is_A_Done_Deal_:)

    So, I guess the iPhone 5c can be called a successful flop as opposed to being an out-and-out flop. I love the way the news media and bloggers jump on Apple whenever they just catch a hint of slowing sales. It’s as though Apple is the only company that needs to keep raising sales numbers to be relevant. I know that Android smartphone sales have certainly increased but that’s how it is when you’re willing to discount heavily or have a low sales price to begin with. Even as an Apple shareholder, I don’t consider the 5c to be a bargain and I’d say it’s definitely overpriced for the specs. Still, that doesn’t make it a flop by any stretch unless Tim Cook declares it a flop due to the 5c not meeting sales expectations.

    • D R

      Obviously, it’s a flop for Apple, because other companies are still selling smartphones.

  • aaloo

    man, seriously stop humiliating yourself. the only phone that sells more than 5c is the 5s and you can’t stop calling it a flop. total click bait. you have absolutely no journalistic integrity.

    • Luke Dormehl

      I like the iPhone 5c: I think it’s a good phone. And it’s not a failure without merits. Numbers have indicated that more first time buyers, percentage-wise, choose the 5c — so you could argue that it’s a gateway to the Apple ecosystem. But it’s also worth noting that Apple, rightly, has a high bar set for its products. The 5c has underperformed based on the metrics Apple and others were forecasting. Now some of that is likely to do with the lack of meaningful differentiation with the 5s. Apple could have made a cheaper phone, but this would have run the risk of damaging their brand equity. As it is, it seems to be a phone that hasn’t really found its audience. As a device is it a flop? No. As an expansion on the iPhone line that grew business in line with what Apple was hoping? Almost certainly. You may disagree but, hey, at least I’m trying to respond to your comment.

  • MyIdea

    The 5C sells more than the Galaxy S4!

    The 5C beat Samsung’s FLAGSHIP PHONE!

    The mistake is comparing the 5C, which replaced the 4S, with the 5S, the best selling smart phone in the history of the world.

About the author

Luke DormehlLuke Dormehl is a UK-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Formula: How Algorithms Solve All Our Problems, And Create More and The Apple Revolution, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme, and other publications. He'd like you a lot if you followed him on Twitter.

(sorry, you need Javascript to see this e-mail address)| Read more posts by .

Posted in News, Top stories | Tagged: , |