Following rumors of poor sales and general consumer disinterest in the handset, Apple is decreasing production of its iPhone 5c and has reduced component orders for the colorful handset, according to a recent report.
The news comes from The Wall Street Journal, which claims that a number of Apple suppliers have been asked to decrease production of iPhone 5c components.
Pegatron Corp. has apparently been told that iPhone 5c orders are to be reduced by less than 20 percent, while Hon Hai Precision Industry Co. has heard that orders would be decreased by one-third, according to “two people familiar with the matter.”
Both companies assemble the less expensive smartphone, with the former producing two-thirds of the total number of iPhone 5c handsets sold, and the latter – which trades as Foxconn Technology Group – assembling the remaining one-third.
The Wall Street Journal adds:
One component supplier was notified of a 50% cut in orders for iPhone 5C parts, which analysts say could suggest a slowdown in device shipments next year, or mean an inventory reduction by assemblers.
Given that the anticipated handset was originally predicted to be a “low-cost” model, and since the smartphone is – in a number of international markets, especially – instead rather expensive, the iPhone 5c has indeed met with general discontent on behalf of consumers.
In China, for example, the iPhone 5c costs more than the country’s average monthly wage.
Even though the iPhone 5c is the No. 2 handset with two of the United States’ major carriers, it’s clear that sales aren’t as impressive as Apple perhaps hoped. In turn, it’s not surprising to hear that production is slowing down.
For the iPhone 5s, however, the situation couldn’t be more different.
As The Wall Street Journal continues, despite being $100 more expensive, Apple’s flagship handset is selling well. As such, though production of the iPhone 5c is reportedly decreasing, the Cupertino, Calif. company is rather increasing its iPhone 5s orders.
The news came from two Hon Hai executives in September.
Of course, Apple will now be looking ahead to Oct. 22, too, when its iPad media event is scheduled to commence. Complimenting the iPhone 5s and iPhone 5c should be next-generation iPads, a refreshed MacBook Pro, and the release of OS X Mavericks.
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