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Why Did Apple Cut iPhone 5C Orders?

Submitted by on October 17, 2013 – 11:29 amNo Comment

Sources told the Wall Street Journal this week that Apple has cut orders for the cheaper, plastic iPhone 5C this quarter. The move could be a troubling sign of lower demand, but it is coupled with increased demand for the 5S.

The Journal quotes “people familiar with the situation”:

Pegatron, which analysts said assembles two-thirds of iPhone 5Cs, was told the order would be cut by less than 20%, a person familiar with the matter said. Hon Hai, which assembles the remaining 5Cs, was told the order would be cut by a third, two people familiar with the matter said.

But similar sources said orders for the 5S would be increased this quarter.

When it debuted last month, the 5C disappointed many investors who had been pushing Apple for a cheaper phone that could compete overseas in developing markets. At an unsubsidized price over $500 and costing just $100 less than the 5S, the 5C did not quite meet those requirements.

Apple has faced increasing pressure from these activist investors to score hits on lots of new product releases, as some have been concerned about the company’s slowing growth, even while it has become the most valuable brand in the world.

CEO Tim Cook has also faced criticism and pressure to perform from the minute he assumed the position, despite how short his tenure has been compared to legendary co-founder Steve Jobs.

What do you think about the decreased 5C orders- should Apple be worried?


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