iPhone 5c Struggles as Apple Reportedly Cuts Back Production
Apple has asked several of its suppliers to cut down on production of the company’s iPhone 5c smartphone for the remainder of the year, according to the Wall Street Journal. This is most likely due to the low demand of the entry-level smartphone, which replaced the iPhone 5 and comes with a new plastic shell with multiple bright colors to choose from.
At the same time, though, the iPhone 5s is selling like hotcakes, and the WSJ reports that Apple is boosting production of its flagship device while it’s cutting back production of the iPhone 5c. Numbers weren’t severely detailed as far as how much production is getting cut back and ramped up, but reports have said that iPhone 5c production is getting chopped down by up to a third at some Chinese plants.
Despite the poor sales of the iPhone 5c, it seems investors shouldn’t be too worried about it, since the iPhone 5s is picking up the slack in a way. According to Reuters, analysts are saying that the decision by consumers to spend more money and buy the iPhone 5s is benefiting Apple in the long run. This is most likely why Apple is keeping quiet about individual sales figures for both of the new iPhones and are simply combining numbers, because individual sales numbers really don’t matter all that much.
However, Apple was more than likely hoping that the iPhone 5c would be a big seller, seeing as how it’s a low-cost smartphone that now sports bright colors for the first time ever with the iPhone. These two features alone were huge selling points for the device, but it seems consumers are smart enough to spend the extra little money in order to get something that will be much better for them in the long run.
It’s said that the iPhone 5s is selling at least twice as much as the iPhone 5c, and we certainly wouldn’t be surprised if that ratio was greater. The flagship device sold out across the US within hours after its launch last month, with the gold version selling out within minutes online. The iPhone 5c, on the other hand, still has a wealthy inventory left. Of course, we knew Apple was making limited quantities of the iPhone 5s, while the iPhone 5c would see plenty of units, but a lot of consumers wanted the iPhone 5s over its entry-level brethren.