The iPhone 5S has been boosting Apple's profits and making a name for itself as the next high-end tier in the company's long line of iPhone devices. However, the 5S didn't come out alone. It debuted alongside the low-cost iPhone 5C, which has not been sharing its partner's success.
According to reports from the Wall Street Journal, Apple has told two of its auppliers that it plans to cut orders for the 5C this quarter. Citing information from people familiar with the situation, the Journal reported that supplier Pegatron was told that 5C orders would be trimmed by less than 20 percent. Meanwhile, Hon Hai, also known as Foxconn, was informed that orders would be reduced by one third.
Pegatron is responsible for assembling around two thirds of all of the company's 5C devices according to analysts reported by CNET. Foxconn accounts for the rest.
Many have been upset with the 5C simply because it isn't exactly the low-cost option that everyone was hoping for. The company squashed any hopes that it would come up with a device that will be competitive with other low-cost Android options when it announced that the unsubsidized price (without a two-year contract) would be $550. With a contract it costs $99 and, despite price chops from Walmart, Target and Best Buy, is still having trouble getting traction.
CNET notes that Apple cutting orders for the 5C doesn't necessarily translate directly to feeble consumer demand. Apple has previously trimmed orders for supplies for several different reasons. However, given the current market, it makes sense for Apple to be cutting back given low sales of 5C, especially when compared to the 5S. It's possible the company just wants to allocate more resources to manufacturing the 5S, which originally launched with limited color options in stock.
Tell us what you think. Are you on board with iPhone's low-cost 5C option or are you going to stick with the high-end flagship model of the 5S? Comment and share your thoughts with us below.
