Though originally expected to do well, the iPhone 5c has failed to live up to Apple’s predictions. Now sources close to the company say they are reducing orders, as sales are likely going to drop more.
While the sales are a disappointment for a model they thought would sell in droves, this isn’t a surprise. The iPhone 5c was launched right alongside the iPhone 5s, which has managed to capture a lot more attention.
Had there been a greater disparity between the prices, more people might have opted for the less impressive model. But with the iPhone 5s being only $199, and the iPhone 5c being $99 with far fewer features and power under the hood, you can’t blame the public going for the upgrade.
This is not just a small cut on Apple’s part. Sources claim they have sent notice to manufacturing companies Pegatron Corp and Hon Hai Precision Industry Co to cut production by a full 50%. A serious reduction that points to the 5c being even less popular than the more cynical projections.
On the other hand, they have upped their production of parts for the iPhone 5s since its release. According to Statistic Brain, there have been approximately 6,500,000 iPhone 5S’s sold, and only 2,600,000 iPhone 5c’s. That was as of last month, so the numbers will be much higher now.
While we don’t know the exact figures, or how many more of the 5s models have been sold, we have been given a rough estimation of twice as many. Not nearly enough to even things out, especially with the holidays on their way and projections still not so good.
To be honest, I am surprised Apple put so much stock in the iPhone 5c to begin with. Sure, having a cheaper model of the iPhone has been in the works for awhile. But the iPhone 5s already is much cheaper than expected. It is such a bargain for the price that have the iPhone 5c is a little redundant.
Yes, it is an alternative for those who want a budget iPhone. I am sure plenty of parents are choosing it for younger teens who have requested an Apple device and aren’t old enough to work for one on their own. But the applications for such a model are limited, and it isn’t a shock that demand wasn’t high.
Apple themselves aren’t saying a thing, refusing to comment on the matter. So there is no way of knowing what might happen next, though we can speculate. Chances are, sales will slow to a crawl (or even stop altogether), which the iPhone 5s will continue to grow in popularity in the same way the iPhone 4s did.
From there, they will have a bunch of iPhone 5c’s they need to unload. Which will lead to a price cut that makes it an even more budget friendly model. Eventually, they will end up off the shelves as the supplies dry up in the next two or so years. Then Apple will try again with the next set of models, probably rebranding the same concept.
But we will have to wait to see, for sure.
Source: WSJ
