Questions raised about Apple smartphone strategy as operators report lukewarm demand for cheaper iPhone
Apple’s strategy of releasing two iPhone models at the same time is coming under scrutiny after reports claimed it had reduced its production orders for the iPhone 5C following lukewarm demand for the smartphone.
The Wall Street Journal says Pegatron, which assembles two thirds of iPhone 5C units, has seen orders reduced by 20 percent, while Foxconn, which assembles the remaining third, has seen its orders cut by 33 percent,
The firm adds it has stopped hiring additional workers after previously increasing its workforce to cope with the anticipated demand, while a component supplier claims its orders have been slashed by a half.
iPhone 5C orders
The iPhone 5C is largely similar to the now retired iPhone 5, but with an “unashamedly” plastic casing available in five colours. It launched alongside the new flagship iPhone 5S last month, but operators and retailers have cut prices of the handset, which many believe to be too expensive, especially when compared to the price of the 5S.
Retaliers say they have plenty of iPhone 5Cs in stock, but are struggling to keep up with demand for the iPhone 5S, which has proved more popular thanks to its advanced features, such as improved camera, Touch ID and faster processor.
Shortly after the launch, operators were reportedly frustrated at short supplies of the iPhone 5S, with some suggesting Apple was deliberately trying to push the iPhone 5C by reducing the availability of the 5S. Adding strength to this theory is that Apple forbade operators from offering pre-orders on the iPhone 5S, while the iPhone 5C was available to order from 13 September.
Apple claims to have sold nine million iPhone 5S and 5C handsets, although it has not revealed how many of each model it has shifted.
What do you know about the iPhone 5S and 5C? Find out with our quiz!