The iPhone 5s has proven to be a hit, the iPhone 5c on the other hand, not so much, at least according to a new report. Apple has told two of its iPhone suppliers that the company plans to slash orders for its iPhone 5c this quarter.
Citing information from people close to the situation, The Wall Street Journal reported that supplier Pegatron was told that 5c orders would be clipped by less than 20 percent. Foxconn was told that orders would be condensed by a third. Furthermore, Pegatron will accumulate around two-thirds of iPhone 5c units, according to analysts, with Foxconn accounting for the rest.
The reasoning behind the low sales of the iPhone 5c has nothing to do with the device not being an attractive option for buyers. It has to do with its expensive price, according to Gervais Pellissier, chief financial officer of French telecom company Orange SA in a statement to the Wall Street Journal. Pellissier went on to add that the iPhone 5c is selling for much lower compared to the iPhone 5s, which is more expensive.
In addition, employees at several Best Buy stores across the eastern U.S. reported that their stores are filled with iPhone 5c devices, but much fewer stockpiles of the 5S. One employee went on to state that the iPhone 5s is outselling the iPhone 5c by a ratio of 3 to 1.
A change in the story
The Wall Street Journal later backtracked on its story by moving the narrative to focus on the thought that Apple's plan to "broaden its appeal with a cheaper version of the iPhone. But efforts appears to be faltering after a few weeks."
The Journal also failed to come up with a solution after identifying a worrying problem. Instead, the Journal chose to put its backing behind what analysts have to say.
However, in its second edition, The Wall Street Journal made observation and thus made the following statement. "The fact that the 5C appears to have missed Apple's expectations may not be all bad, especially if it means consumers are buying more of the 5S, the higher-end iPhone that came out at the same time last month and sells for $100 more."
Furthermore, the Journal notes that Apple has claimed to have increased production orders for the iPhone 5s.
The iPhone 5c with its high price might not be enough to compete in the low-end section of the market where Android and Windows Phone dominate. A new strategy needs to be taken before this becomes a missed opportunity for Apple.
Apple, the world's most valuable technology company, began selling the iPhone 5c last month on the same day as the most expensive iPhone 5s. The cheaper handset is primarily the same as the older iPhone 5 but with a plastic body.