iPhone 5S is now outselling iPhone 5C 8:1 in China. 5C production cuts confirmed by WSJ
More and more data, emerging from different sources, points to a very disappointing iPhone 5C demand. The latest one is coming out of China, where local journalists did a survey of unofficial iPhone resellers in Guangzhou. According to them iPhone 5S is now outselling iPhone 5C 8:1.
This is only the latest tidbit indicating that Apple seriously miscalculated the pricing of iPhone 5C this year. Other signs include price cuts and special deals various carriers and retailers are now running for Apple’s younger smartphone model around the world, and its price on Chinese Taobao online marketplace falling below the purchase cost, which means that resellers are now taking losses simply to clear unsold inventories.
Also, those iPhone 5C production cuts we told you about last week? They now have been confirmed by WSJ. According to them, Apple asked Pegatron to cut their 5C production by 20%, and Foxconn by 30%, while one component supplier’s orders were cut by 50%.
But all this bad stuff we hear about iPhone 5C doesn’t mean that Apple is in some kind of trouble. For now, at least. It only means that they got too cocky with iPhone 5C, or have some sort of long term plan for it, where they don’t need initially high sales.
Yes, 5C sales are low, but iPhone 5S, on the other hand, continues to do very well. Demand for the gold colored model is through the roof, while other flagship iPhones are moving at a brisk pace too. And while Apple is cutting 5C production, it is also increasing more lucrative 5S orders.
Which means that as far as the numbers for the rest of this year go, there isn’t much to worry about. In fact, with iPhone 5S now outselling cheaper 5C by so much, Apple’s margins and profits may seriously surprise us once again.