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Submission + - Apple Slashes iPhone 5c Production

Hugh Pickens DOT Com writes: Information Week reports that Apple has asked Pegatron to lower its orders downward by 20% and Hon Hai to slow down their production downward by one-third suggesting that the iPhone 5c may not be selling as well as Apple had forecast. Earlier this week, Consumer Intelligence Research Partners (CIRP) data indicated that Apple's iPhone 5s accounted for 64% of total iPhone sales at the end of September. The iPhone 5c accounted for 27% of sales, and the iPhone 4S comprised 9% of sales. Some are calling into question Apple's pricing strategy for the iPhone 5c. Without a contract, the iPhone 5c starts at $549 — certainly not a "low-cost" device — while the 5s starts at $649. With only $100 separating the two, many consumers are opting for the high-end model. "This reflects a failure in Apple's pricing strategy," said Bevan Yeh, a Taipei-based senior fund manager at Prudential Financial Securities Investment Trust. "The price differentiation between 5C and 5S is too small. It's an iPhone 5 with plastic casing and isn't worth the price." However, Pegatron and Hon Hai are not Apple's only manufacturing partners and it is useless to speculate about how much iPhone 5c stock Apple already has on-hand. Analysts still predict that Apple will sell 23 million 5c devices during the fourth quarter of the year and another 10 million during the first quarter of next year.
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Apple Slashes iPhone 5c Production

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