Wall Street Journal Throws Weight Behind ‘Apple Will Ship Two New iPhones in September’

| Analysis

The Apple Crystal BallIf you aren't convinced yet—and really, you should be—The Wall Street Journal has added its journalistic weight behind the "Apple's gonna ship two new iPhones in September" narrative. Citing unspecific sources, the newspaper said that Apple's suppliers have been asked to ship both a high-end iPhone and a new low-cost iPhone model in September, a first for Apple.

The more Apple-centric rumor sources have been pushing leaked images of an iPhone 5S and a plastic-backed, multiple color iPhone 5C for months. The newest leaks have focused on many images of a gold-anodized iPhone 5S that some have described as being "champagne" colored.

What's new about The Journal's story is that the leak is coming from within Hon Hai Precision Industry, which is better known by the trade name Foxconn, Apple's main manufacturing partner. Rather than being based on leaked component pictures, this story is about what Apple has ordered from Foxconn, and that's a first for this news cycle.

The article demurs on when Apple will announce the products, saying only that it will be, "as soon as next month," but does note that suppliers began mass-producing components for both lines in June.

The pussyfooting around on the release date is a tad silly. Last week, the story broke that Apple would host a media event on September 10th, and that story was confirmed by The Loop's Jim Dalrymple and AllThingsD's Ina Fried. Considering that AllThingsD and The Wall Street Journal are both owned by News Corp., the hedging seems pointless.

Nevertheless, the article mentioned that Ming-Chi Kuo, an analyst for KGI Securities in Taiwan, is estimating that Apple will ship 5.2 million of the as-yet-unannounced iPhone 5S in the September quarter, plus another 8.5 million units of the iPhone 5C.

The analyst pegged total third quarter iPhone shipments at 35 million, counting legacy devices already for sale. If Apple were to hit those numbers, it would represent another record quarter and a 30 percent increase year over year.

That would be impressive, but it would mean that Apple would continue to lose smartphone market share as sales of cheap Android devices acting as feature phones skyrocket. That isn't likely to matter to Apple if its share of the profitable end of the market increases, something I suspect will be the case.

Comments

geoduck

Maybe an announcement on the 10th with a release date of the 27th (just into fall) along with iOS7?

Bryan Chaffin

I’m down for the 20th, as Jeff and I discussed in a recent Apple Context Machine. Apple’s not going to kill an extra week of current sales unnecessarily.

mrmwebmax

+

Has any article broken down all of the supposed differences between the 5S and 5C? From what I’ve read, the 5C may be equally capable as the 5S, with maybe a less-powerful rear-facing camera, and of course the plastic back. I’m just wondering, if the plastic back is the key differentiator, how much can that possibly save Apple on the cost of producing the 5C vs. 5S to make it a “low-cost” iPhone?

NEALC5

Why do people worry so much about Apple losing smartphone market share?  People are buying cheap smartphones to replace dumb phones.  They don’t really care that they are so smart, and use very little of the functions.  Apple NEVER had a majority of the smartphone market, since Symbian and Blackberry had most of the market.  It seems to me that 15-20% of the market is all Apple will ever get, considering that Android is free.

mrmwebmax

+

NEALC5,

Pundits are convinced iOS vs Android is Mac vs. Windows all over again. They neglect to remember that the bulk of Windows PC purchases were made by IT departments, followed by consumers simply buying for home what they were forced to use at work. The smartphone market is completely different, as is the ratio of software developers for iOS/Android vs. Mac/Windows.

Back in the dark days, most great software apps, save for a fairly crappy version of Office and the Adobe creative applications, never even made it to the Mac. And just forget about games, they simply weren’t there. Now with rare exception, just the opposite is true: The best apps—including games—come to iOS first, then get ported to Android. And that’s for two reasons: More people pay for apps on iOS, and the lack of fragmentation makes it an easier development platform. So until those factors change, iOS remains a robust ecosystem and the analogy to the Mac/Windows days falls apart.

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