Apple's move towards a "cheaper" iPhone has not proven as fruitful as it had hoped. The colorful blend of iPhone 5C models were supposed to be a more affordable version of the latest iPhone, but when they were launched back in September, the general hope for a low cost phone was dashed by the $550 non-subsidized price tag. Now Apple's hope has lost its color as it proceeded to announce plans to the supplier to cut orders, as reported by The Wall Street Journal.
The article claims that Pegatron and Foxconn were told to reduce their orders this quarter. Pegatron accounts for about two-thirds of all the iPhone 5C production, and was told to slice orders by "less than 20%." While Foxconn accounts for the remaining third of the production line, it received an almost 30 percent cut in expected orders.
While this information is certainly not good for Apple, it does come with the news that the expected orders for the iPhone 5S were increased above expectations, probably because the difference in features and performance between the iPhone 5C and 5S is well worth the $100 dollar margin that separates them. Do you think Apple was blindsided by their own enthusiasm for its "lower price margin" product, or could this trend be the beginning of something worse for Apple? Feel free to tell us what you think in the comments section below.
