Apple compensates iPhone 5C production cuts with iPhone 5S orders
Apple, in wake of slow sales and low demand, has reduced orders for its plasticy, colourful iPhone 5C and to compensate for the trimmed orders is increasing the numbers for iPhone 5S, reports claim.
Both Pegatron and Hon Hai aka Foxconn have been warned by Apple of trimmed order for the fourth quarter of 2013 reports The Wall Street Journal. According to the report, Pegatron, which is believed to be manufacturing two thirds of iPhone 5C, has been warned that it may see as much as 20 percent reduction in orders while Hon Hai may see production cuts in tune of 30 percent. Few iPhone 5C component makers have also been notified of the production cuts and some claim that the production cuts may go up to 50%.
Lackluster demand in iPhone 5C is not only evident from the product cut report, but also the wait times on Apple’s website – iPhone 5S has a wait time of two to three week as compared to iPhone 5C which is shipped in just 24 hours. Further, retailers in US has already started offering discounts with Wal-Mart shedding off $20 of the iPhone 5C right after launch while others are offering the handset for just $49.99 on two year contract as against the original pricing of $99.99.
There are those familiar with the matter that claim that the iPhone 5C production cut numbers have been compensated partly with increase in iPhone 5S orders.
Apple hasn’t given model wise breakup of its iPhone sales thus far, but it did announce earlier that it managed to sell over 9 million units of its new iPhones within the first three days of launch.