Apple has told two Asian assemblers of the new iPhone 5c that it's going to cut orders for iPhone 5c for the holiday season, according to an Oct 16 report in the “Wall Street Journal”. This move again raises some concern that the iPhone 5c is selling poorly.
“Reuters” reports that Apple cut orders for the iPhone 5c from Pegatron Corp by almost 20 percent. The “Wall Street Journal” says that Apple's orders for the iPhone 5c from Hon Hai Precision Industry Company were cut by almost 30 percent. Both of these assemblers are in Taiwan.
Ever since the iPhone 5c and iPhone 5s both went on sale in September, the iPhone 5s has been the smartphone most sought after by customers (particularly the gold model) because of its new features, like faster chips and a fingerprint sensor—despite iPhone 5s being $100.00 more than the $99.00 price of the iPhone 5c that was initially announced by Apple at launch.
The iPhone 5s continues to outsell the iPhone 5c even though price gap between the two has grow wider. Big box retailers like Walmart, as well as, specialty stores like Radio Shack, have reduced the iPhone 5c price to as little as $45.00 with contract. The iPhone 5c can even be had for free at Best Buy with contract—and at some wireless carriers too.
The iPhone 5c has even been discounted by Telecom Corp, a wireless carrier in China.
But the reduction in orders of iPhone 5c, coupled with the price cuts, points to poor sales— or so claim some Apple analysts who seem to be overlooking the possibility that the iPhone 5c production cuts are just tweaks in a very complex supply chain, according to “The Economic Times”. While Apple has indeed reduced orders for iPhone 5c for the last three months of this year, Apple has simultaneously increased orders for the iPhone 5s over the same period.