Apple Inc. (NASDAQ:AAPL) making adjustments in production of iPhone 5c by downsizing it
According to C-Tech’s report, Apple Inc. (NASDAQ:AAPL) has decided to downsize iPhone 5c’s production by half – it will go down from 300,000 units/day to 150,000 units/day. The biggest reason for this cut is the disappointing sales of iPhone 5c that failed to capture the attention of cell phone users. Moreover, Unwired View states that 5c phone price has also seen a decrease.
5c was released in China at a price of $726. However, the Chinese Grey Market is strong where 5c are smuggled illegally into the country from Hong-Kong, Europe and US causing the mobile set’s price to go down. According to local technology sites and after conducting a review of China online marketplace offers, the average unofficial price of the 5c model is somewhere between $486 and $539, which is 30% less than its official price. These 5c models can even be bought at a price as low as $425. However, since the availability of 5s is less as compared to 5c; therefore, 5s prices in China Grey Market are still high.
Decreasing the production of 5c clearly shows that 5c’s supply is way more than its demand. The phone was produced to attract the cost sensitive customers and improve sales outside of America in countries like China and other technologically advancing countries; however, with only $100 separating 5s and 5c models, the company beat its own objective. This shows that Apple was not prepared for the response, or rather lack of it, 5c is getting from the buyers. On the other hand Apple was not successful in increasing the production of 5s mainly because of shortage of its fingerprint sensor. This resulted in more demands and less supply of their 5s model.
It is believed that Apple Inc. (NASDAQ:AAPL) is going to rectify the 5c production issue. The manufacturers also had to adjust their iPhone 5s Gold’s production by increasing it.