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. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
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:



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Mobile Tech
1.   Report: Amazon Phone To Feature 3D
2.   Review: Galaxy S5 Features Useful
3.   Galaxy S5 Won't Sway iPhone Lovers
4.   Charge a Phone in 30 Seconds? Done
5.   Samsung Adding Anti-Theft Solutions


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Android Wear on Tap for Wearables
OK Google, what's really new here?
Average Rating:
Will Nadella Launch an Office for iPad?
New Microsoft CEO may act this month.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Appleā€™s iPhone?
 

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.