Analyst Predicts Apple Will Replace the iPhone 5 With iPhone 5C

Analyst Predicts Apple Will Replace the iPhone 5 With iPhone 5C
KGI Securities analyst Ming-Chi Kuo has issued a new note to investors predicting that Apple will replace the iPhone 5 with the iPhone 5C at the end of the quarter, reports MacRumors.

Here are the highlights from his report:
● The components and the EMS (electronics manufacturing services) for the new iPhone will be ramping up in late-August/early September.
● Hon Hai (also known as Foxconn) will start manufacturing a version of the iPhone 5C supporting the TDD-LTE used by China Mobile in August, earlier than expected.
● Models supporting the TDD-LTE standard are predicted see a penetration of 25% in iPhone 5S and 35% in iPhone 5C shipments, which may boost Apple's presence in China.
● The iPhone 5 will be discontinued at the end of the third quarter, but shipments of the iPhone 4S will continue until the end of 2013. The iPhone 5C is therefore designed to replace the iPhone 5, rather than the iPhone 4S as originally predicted.
● The iPhone 5S will be the more popular model and will exceed the iPhone 5C in terms of shipments. 

Kuo estimates that Apple will ship 33.3 million iPhone 5S units in 2013 and 27.2 million iPhone 5C units. That includes 5.2 million and 8.4 million units in the third quarter alone, respectively. The iPhone 5S is said to cost $600-700 and will be available in gold with a 128GB storage option. The iPhone 5C is said to cost around $400-500. Finally, the iPhone 4S will see its price lowered to $300-400. The iPhone 4 whose price would drop to $200-300 will likely be discontinued.

Kuo also notes that production concerns over the iPhone 5S fingerprint sensor have eased, with Apple having "a defined timetable demanding yield rate improvement for fingerprint sensor module and casing". 

Apple is expected to unveil its next generation iPhones on September 10th.

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