Apple reportedly cuts iPhone 5c production in half

By Tara Donnelly

Last updated 11 October 2013

Haters across the world have been waiting for signs that Apple's luck is running out. Now unsubstantiated reports suggest that the company may have overestimated the appeal of the newly released iPhone 5c.

According to Chinese tech site C Technology, Apple has halved its daily production of the 5c from 300,000 units to just 150,000 due to a decreased demand for the smartphone.

The claims are as yet unconfirmed by Apple, but the availability of the 5c compared to the more expensive 5s – which has so far outsold the 5c by up to five times in some countries – suggests there’s some truth in the rumours.

Currently, the Apple store lists the 5c as available to ship within 24 hours, but the 5s apparently has a wait time - the store lists the shipping date for the phone as 'October'.

5s vs. 5c

We’ve previously speculated on just what exactly Apple was thinking by choosing to simultaneously release its premium iPhone 5s and ‘cheap’ iPhone 5c.

Our verdict was that the relatively small gap in pricing between the two models would cause many buyers to go straight to the superior 5s.

In China in particular, demand on the ‘grey market’ (legal, but unofficial, channels of sale) for the 5s remains high, whereas the 5c’s price has dropped considerably after only a few weeks: from US $700 to between $490 - $500.

Predictions that the 5c would be the more popular choice in developing markets such as India and China haven’t exactly panned out. Despite being the more affordable option, the sale price of the 5c is still too close to the 5s to attract buyers looking for a low-cost device.

In the US, retailers Walmart, Best Buy and Radioshack have all cut the price of the 5c from the recommended $99 with a two-year contract, to as low as $45. In contrast, the 5s is still priced at $199 on a contract.

It’s a big discount so soon after the phone’s launch, and Best Buy officials have stated that the move was designed to drive sales of the 5c. While Best Buy has offered other Apple smartphones with similar discounts in the past, this is the first time such a deal has applied to a newly released Apple device.

It's not all bad

Of course, there are other theories as to why the 5c isn’t selling at the same rate as the 5s. Apple fans who buy products at launch tend to be tech enthusiasts and trend followers who’ll naturally go for the ‘best’ product available.

And while production for both the 5c and 5s was ramped up by Apple in the weeks leading up to the official launch, supposedly the company experienced fingerprint sensor shortages, meaning supplies of the 5s were considerably less. If true, this could add to the appearance that the 5s is hot property, due to there being fewer units available to buy to begin with.

Despite whispers that Apple was a little too optimistic in its sales projections, business is bound to pick up soon. If sales of the 5c have been underwhelming so far, it’s a safe guess that demand will increase over the upcoming Christmas/holiday period.