Report: Weaker than expected demand causes Apple to cut iPhone 5C orders

Report: Weaker than expected demand causes Apple to cut iPhone 5C orders
Apple is to scale back iPhone 5C production following weaker than expected demand from consumers, with iPhone assemblers and component manufacturers having to contend with reduced orders from the Cupertino giant.

That's according to the Wall Street Journal, which claims that, while iPhone 5S is in short supply in many territories around the globe, its cheaper sibling the 5C has so far failed to hit Apple's lofty sales targets – despite a big push across TV and other media.

In particular, Apple has increased orders for the gold version of the 5S, which the paper claims experienced "particularly high" demand at launch.

Talk is cheap

However, while component orders don't necessarily correlate directly with end demand, sources "familiar with the matter" have told the Wall Street Journal that one iPhone 5C component supplier has been notified of a 50 percent cut.

Likewise, assembler Pegatron – which it's believed handles two-thirds of all iPhone 5Cs manufactured – has been told orders will be cut by less than 20 percent.

Commentators have been quick to suggest that iPhone 5C's problems revolve around the device's RRP.

In the weeks leading up to the handset's big reveal, many analysts had predicted a 'budget' iPhone would retail for $200 or even $300 less than Apple's premium offering. The handset's RRP, however, is around $100 less than the 5S.

Apple has so far kept iPhone 5C sales to itself, though combined iPhone sales did hit 9 million during 5S and 5C's opening weekend. Estimates suggest 5S may be outselling 5C by two to one in the US.

[source: The Wall Street Journal]


With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font. As editor, he has the pleasure of monitoring the market share of all mobile OSes on a daily basis.


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