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WSJ: Apple cutting iPhone 5c, increasing iPhone 5s production

updated 07:59 am EDT, Wed October 16, 2013

Report cites executives at suppliers for decrease, increase in manufacturing

Apple is cutting the production of the iPhone 5c after it experienced low demand than the company expected, according to the Wall Street Journal. Echoing similar reports from last week, it is claimed that suppliers Foxconn and Pegatron have been requested by Apple to decrease iPhone 5c production by 20 percent and 30 percent respectively.

Though production of the iPhone 5c will allegedly reduce, the same cannot be said for the more-popular iPhone 5s. Two executives at Foxconn revealed to the report that Apple wants to increase production of its current flagship model.

It is not clear how much this will impact the iPhone 5s and 5c's launch on China Mobile, the largest Chinese carrier, on November 11th. 5C units smuggled into China from the US, Europe, and Hong Kong are apparently selling for between 3,000 and 3,300 yuan ($490 to $540) each. Considering that devices on China Mobile uses its TD-SCDMA cellular standard, it is unlikely that the smuggled devices will work on the network, and instead are being used on other carriers.



By Electronista Staff
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Comments

  1. Inkling

    Junior Member

    Joined: 07-25-06

    Apple needs to hire me as a consultant. I'd even come cheap. For say $100,000 a year, I'd be on call for advice. In return, they'd save many times what I'm paid.


    In this case, I'd have told them rather bluntly and in advance that the iPhone 5c was grossly overpriced, particular for a phone that looks like dozens of others on the market. I've been saying that from practically the moment it was released, but that was too late.



    Apple's problem isn't the loss of a creative edge as some are claiming. That's still there and in abundance. Apple's problem is that its executives live in a bubble that distorts their view of the world. Apple is affected by its own reality distortion field.


    Spending five billion dollars to grow the company's facilities in California when hundreds of businesses are clever enough to leave or at least grow elsewhere is one example. Pricing the ho-hum 5c only a little below the utterly marvelous 5s is another.


    Heck, I'd become an Apple consultant for $50,000 if they toss in a free Mac and iDevice each year.

  1. jdonahoe

    Fresh-Faced Recruit

    Joined: 07-05-06

    How much of this reduction in production is merely a ramp down from pre-release levels? I wouldn't consider a 25% (average) reduction in 5c production as a sign of failure.

  1. chas_m

    MacNN Staff

    Joined: 08-04-01

    The iPhone 5c is exactly the price it is supposed to be, per Apple's tradition. As has previously been explained to you, Inkling, *every year* the top of the line model is moved down the chain and becomes the "$99 phone" (on contract) and sees a $100 price drop in contract-free price.

    This happened to the iPhone 4 when the 4S came out, it happened to the 4S when the 5 came out, and now ... to the surprise of only clueless Wall Street pundits ... it happened to the 5 when the 5s came out. The *only* difference is that instead of keeping the 5 as-was, they replaced it with a slightly improved and colored version, the iPhone 5c. This was likely done to avoid confusion as much as anything else, as the 5s and the 5 look *completely identical* and inasmuch as Apple is positioning the 5s as a premium iPhone, they'd be undermining their own cause by keeping the iPhone 5 around.

    The only difference between the iPhone 5 and the iPhone 5c is that the iPhone 5c is substantially better on battery, and has a better front camera. Otherwise, no real change (particularly if you -- like most buyers -- have a case on your iPhone 5). Thus, if it's "grossly overpriced" now, it most have been disgustingly overpriced last year ... hmmm, I'm beginning to see why they haven't taken you up on your "generous" offer ...

  1. winstef

    Fresh-Faced Recruit

    Joined: 02-12-06

    Love it when the peanut gallery tells Apple what to do. What if the 5C was intended to compete with the Samsung G4? If so, it has succeeded completely. So this year, Apple has twice as many iPhone models kicking Samsung's butt, along with all the other Adnoid devices out there. And there are many thousands.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    :lol: @ inkling

  1. chas_m

    MacNN Staff

    Joined: 08-04-01

    jdonahoe makes an excellent point -- this could very well be normal ramping down from channel-filling levels, and not indicative in any way of a problem. Seems to me I dimly recall someone important saying something like that ... something along the lines of don't read too much into any one claim or report from suppliers ... ;)

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