Apple Cuts Orders of iPhone 5c as Fans Only Want Premium Model - The UpStream

Apple Cuts Orders of iPhone 5c as Fans Only Want Premium Model

posted Sunday Oct 20, 2013 by Nicholas DiMeo

Apple Cuts Orders of iPhone 5c as Fans Only Want Premium Model

In the past, we've talked about the flurry of problems Apple has had with iPhone launches but nobody else seems to talk about. Fortunately, we're here to break the conformity barrier, and with the iPhone 5s and 5c launches, we covered the sensor issues of the 5s and sales failure of the 5c. This week it continues, as it's been reported that Apple has requested a cut in production on the iPhone 5c.

Before the phone even came out, we predicted the phone would be a failure, if not for anything else than Apple bashing Samsung for using plastic, claiming it makes Samsung phones appear "cheap." Well, keeping with the "cheap" moniker, the 5c was apparently no different and the citizens of Appledom did not want to associate with a lesser model of the newer iPhone. For the final three months of the year, Apple has asked one of the company's largest manufacturers, Pegatron Corp, to raise the production of the 5s while sharply cutting production of the 5c.

Pegatron has reported that orders for the iPhone 5c have been cut by more than 20 percent in the past two weeks, which is huge for a company that bolstered this phone as a premium, yet affordable option. Hon Hai Precision Industry Co is another assembly plant for the 5c, and that group has seen orders drop by over 30 percent in the same couple of weeks. However two executives from the company also confirmed that Apple has raised orders for the 5s for the fourth quarter. Analyst Michael Walkley has estimated that sales for the 5s could be up to 2.5 times more than the 5c.

Morningstar analyst Brian Colello even said that Apple's marketing towards emerging markets would have been great, if the iPhone 5c wasn't so expensive.

We're not especially concerned with 5C order cuts at this point because they appear to be offset by strong demand and increased production for the 5S. As far as emerging markets, the 5C is simply not cheap enough to gain traction with customers that can buy $150 Android devices.

As we predicted, the fact that the phone is not much different than the iPhone 5 would prevent adopters from switching over to the 5c, with some owners only being ten to twelve months into their contract. That, on top of the not-so-cheap price point of $649, leaves the Apple iPhone 5c to be but a mockery of a plastic Galaxy S phone trapped in a colorful Lumia shell. Do you disagree? Why or why not? Tell us in the comments section below.

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