iPhone 5C Orders Slashed Due to Lowered Demand

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.

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
Comment from the forums
    Your comment
  • monsta
    Guess they could'nt find enough colorful people....
  • JD88
    Does this really surprise anyone?

    $550 for specs that were low tier last year. Apple's usual model is to take last year's product and charge $100 less for it and call it a day. This year they did that, only made it even worse with plastic. Buying that would be moronic even for the typical iSheep.
  • rwinches
    They are still selling a lot of 5Cs, the numbers are being held down because of existing stock of 5s, and the high figures for the 5Ss. I think 150k a day is still a lot of phones.
    I do think that the $100 differential was not enough, $150 or more would have been smarter, the target demo was China and there is no carrier discount so for $100 more you get the real thing.