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Case Makers' Gamble on Newly Designed iPhone 5 Backfires

While the whole blogosphere was frantically speculating about the new 'iPhone 5', case makers took the hearsay a step further. In order to seize the advantage in a lucrative market, Hard Candy ordered $50,000 worth of cases for Apple's new iPhone, before the announcement was made.

Tim Hickman, owner of Hard Candy, declared that the case mock-up relied on the leaked photos and 3D models from Apple's Chinese manufacturers. Previously, Hard Candy had gained from similar bets.

In September 2010, Hard Candy was able to offer to customers cases for Apple's new iPod touch, just a week after the release. At the time, the mock-up was also based on leaked specs and photos from Chinese sources. Hickman doesn't seem too worried by the recent losses, as he expects his company to reach revenue of $50 million by 2013, Apple Insider reports.

Other case makers, such as Incase and Speck Products took a more reserved approach and refused to make case designs based on leaked, unconfirmed information. "It's much more important to get it right than to get it there first," explained Steve Gatto, Incase CEO.

The temptation to gain an advantageous position is high as the case market for smartphones has a yearly value of $436 million.

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Radu has been working as a freelance writer for more than five years and has been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.