Apple reportedly cuts production of iPhone 5c

Macworld Australia Staff
11 October, 2013
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News has reported a claim made by C Technology that Apple is halving its production slate of the new iPhone 5c from making 300,000 a day to 150,000 a day. Some analysts have been quick to claim that this news if the writing on the wall for Apple – that the iPhone 5c has been a flop and sales are sluggish. goes further, pointing at a softening ‘grey market’ as further signs of doom for the new phone.

“The official price of iPhone 5c in China is 4448 Yuan ($768). But there is a thriving grey market over there, with iPhones bought in the US, Europe and Hong Kong, illegally smuggled into the country. With real people taking real risks with their real money, this market is very sensitive to the real demand for any gadget, and very quick to adjust prices accordingly,” says the site.

Commenters have also been quick to jump on the thumbs-down bandwagon, with posters like kas23, writing on the MacRumors board, “This has been a rare failure by Apple. I can’t see why they didn’t see this coming. They need to come off their high horse.”

But perhaps the naysayers are being a little too quick off the mark – as is their wont. As MacRumors also notes, “While a decrease in iPhone 5c production would be a signal that Apple has plentiful supplies in its distribution channels, it is not necessarily an indication that the company significantly overestimated demand for the device… Apple no doubt ramped up production leading up to the iPhone 5c launch in order to meet pre-order and launch-day demand while also shipping a significant number of units into its distribution channels to stock retail locations for sales in the following weeks.”

Responding to the prophets of doom, giantfan1224 says, “You’re jumping the gun a little in declaring it a failure. And how do you know they didn’t actually anticipate this happening? They obviously had much more stock of the 5C from the beginning which is why they allowed pre-orders, where they didn’t allow pre-orders of the 5S. If it was such a failure, it wouldn’t have taken four weeks (from the time pre-orders started rolling in) to decide to cut production.”

Going further, the intriguingly named fertilized-egg has a bit of history on hand, linking to past news articles saying exactly the same thing about the iPhone 4, the iPhone 4s and the iPhone 5, before concluding, “I am still shocked how Apple stays in business considering we also have many Macrumors posters who’d always tell us only existing Apple users keep buying iPhones and most new customers buy Androids.

“On the other hand, I don’t think the iPhone 5c is the kind of device that’ll be a smashing success in the early phase. The success and failure of that model will be told in the next two years as it serves the late adopters and price conscious types who bought $0 iPhone 4 and now the iPhone 4S.”

Shocking! A commenter out there who thinks it’s sometimes a good idea to wait and see before making snap judgements and rash pronouncements. They’ll never get ahead.

by Macworld Australia staff



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