Apple wants to sell 90 million iPhone 6 units. 3 million iPhone 5C handsets are now in inventory
Apple has high hopes for its next iPhone, it seems. The company is reported to have ordered no less than 90 million iPhone 6 units from its manufacturing partner Foxconn. This comes from an analyst at Citigroup Global Markets, who was quoted by the Chinese-language Commercial Times in Taiwan. This info was then picked up by DigiTimes, the Taiwan-based source for rumors and speculation originating in the “upstream supply chain” of most smartphone makers out there.
Unlike what it has projected for the iPhone 6, the iPhone 5C isn’t doing at all well for Apple, according to another DigiTimes report, this time coming straight from those infamous “Taiwan-based supply chain makers”. They claim that there’s currently an inventory buildup of 3 million iPhone 5C units just sitting around – 2 million of which are at Pegatron, the company that makes them, and one million at different carriers and distributors.
Shipments of the iPhone 5C have dramatically declined starting in late 2013, and this inventory buildup is apparently the result of that (or rather – the consequence of Apple overestimating iPhone 5C sales). Apple has reacted to the very weak demand for the iPhone 5C, as it decided to stop placing orders for the handset at the end of last year, but that obviously didn’t help with the inventory situation.
Unfortunately, all this stock isn’t likely to result in price cuts for the iPhone 5C at carriers across the world, because of their contracts with Apple and the prices they’ve already agreed to pay for the smartphone. As for why the 5C is doing so badly, the main reason is probably that it’s not cheap enough to become a better seller than the higher-end iPhone 5S.