Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Apple/Mac
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Apple Cuts Supply Orders for Not-Cheap-Enough iPhone 5C
Apple Cuts Supply Orders for Not-Cheap-Enough iPhone 5C

By Seth Fitzgerald
October 16, 2013 2:00PM

    Bookmark and Share
The apparently critical flaw with the iPhone 5C is its price. Instead of coming in far below the cost of Apple's premium iPhone 5S, it was released at a relatively close price point. Although the device is great for people who want a plastic or colorful phone, it is not providing a "cheap" way to access the iOS ecosystem, which is what many customers want.
 

Related Topics

iPhone 5C



Apple is now having to cut back supply orders for the iPhone 5C due to the phone's lack of appeal among buyers. Based on Apple's own sales numbers, the iPhone 5S is selling at twice the rate of its plastic-backed and slightly cheaper iPhone 5C.

While sales are low in the U.S., Apple is really struggling to push out the iPhone 5C to buyers in other countries. Unfortunately, the iPhone 5C was intended to be Apple's gateway into overseas markets, but it has failed to be that so far.

High Price, Low Sales

The apparently critical flaw with the iPhone 5C is its price. Instead of coming in far below the cost of Apple's premium iPhone 5S, it was released at a relatively close price point. Although the device is great for people who want a plastic or colorful phone, it is not providing a "cheap" way to have access to the iOS ecosystem, which is what many customers want.

Analysts have not been surprised by Apple's decision to cut back on its production orders.

"As far as emerging markets, the 5C is simply not cheap enough to gain traction with customers that can buy $150 Android devices," said Morningstar analyst Brian Colello.

Bloggers and analysts in China have repeatedly made accurate predictions regarding the iPhone 5C and how its price would affect sales. Within hours of the iPhone 5C's price being announced, it was clear to most people that the phone would not be Apple's solution to its developing-market problem.

iPhone 5S Is Winning

While Apple did not win over the market with the iPhone 5C, its latest round of new phones were not completely unsuccessful. The high-end iPhone 5S is selling twice as fast as its cheaper brother and is doing quite well in the usual U.S., European, and now, Asian markets.

To many analysts' surprise, the iPhone 5S has actually been the successful iPhone in Asian countries, specifically China. For the people who are able to afford it, the 5S is the better choice considering that it barely costs any more than the 5C.

It may well be the fact that releasing two completely new devices is what killed off the iPhone 5C's potential for success. Some analysts are now assuming that saturation of the iPhone market is the leading cause of the public's lackluster interest in the 5C.

According to Foxconn executives, Apple is raising its production orders for the iPhone 5S at the same time as it decreases its request for 5C units. This makes sense considering how overwhelmed Apple stores and authorized retailers were on the new iPhone's launch date. In the end, Apple's general iPhone sales predictions for the rest of 2013 will likely stay accurate. However, the bulk of those sales will be coming from the 5S, and less will come from the cheaper iPhone 5C.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Apple/Mac
1.   Is Apple Dumping iPhones on eBay?
2.   Apple Seeks an 'iCup Technician'
3.   Apple Expands CarPlay System
4.   Apple Updates Mavericks, iOS 7
5.   Apple Cuts Prices of iPod Touch


advertisement
Apple Updates Mavericks, iOS 7
Another failed attempt by Apple?
Average Rating:
Summer of Silicon Valley's Interns
Good pay, perks, and a future career.
Average Rating:
Is Apple Dumping iPhones on eBay?
Factory Certified sells refurb handsets.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 
Russian Arrested in Hacking Case Filed in Seattle
The U.S. Secret Service has arrested a Russian man who is accused of hacking store computers to steal thousands of credit card numbers, charging him with bank fraud, identity theft and more.
 
More Than Half of Networks Not Ready for Internet of Things
Most enterprises are prepared for the IoT and see its business potential. But the reality is that there may not be enough network capacity to handle the increased demand in connected devices.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.