Apple Reportedly Cutting iPhone 5c Production as Chinese Gray Market Prices Drop

iphone_5c_store_heroApple is reportedly cutting iPhone 5c production in half from 300,000 units to 150,000 units per day, according to claims by C Technology [Google Translate], which leaked a number of photos of the iPhone 5s and iPhone 5c ahead of their launches last month. As highlighted by Unwired View, gray market pricing for iPhone 5c units has also been falling as availability has remained solid.

The official price of iPhone 5c in China is 4448 Yuan ($726). But there is a thriving grey market over there, with iPhones bought in the U.S, 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.

Care to guess the current price of unofficial iPhone 5c in China? 3000 to 3300 Yuan ($489-539), according to checks done multiple by local tech sites, and a quick review of offers on China’s main online marketplace – Taobao. That’s a drop of 30% below the official price. And, according to some sources, you can now sometimes find iPhone 5c as cheaply as 2600 Yuan.

The iPhone 5c has been available in much greater supplies than the iPhone 5s, which continues to be difficult to find and for which gray market prices in China remain high. There has, however, been some dispute about how much of the plentiful iPhone 5c supplies might be due to weak demand and how much is a result of Apple simply having been able to ramp up production sufficiently to meet early demand.

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, which retails for just $100 less than than the iPhone 5s. 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. Apple was unable to make a similar production ramp for the iPhone 5s, reportedly due to fingerprint sensor shortages, leading to very tight supplies that continue to be an issue three weeks after launch.

Apple will certainly be adjusting its iPhone 5c production orders to meet customer demand as it did by immediately boosting gold iPhone 5s production, but it is unclear whether the currently alleged iPhone 5c production changes have been part of Apple's strategy all along or if they are a response to weaker than expected demand.

Related Forum: iPhone

Top Rated Comments

Jimrod Avatar
137 months ago
Make a black one and double your sales by targeting guys as well as teen girls...
Score: 65 Votes (Like | Disagree)
cptdavep Avatar
137 months ago
I don't know who in their right mind would by a 5C when it's only $100 cheaper than a 5S. Given the difference in performance/features the 5C is really poor value.
Score: 64 Votes (Like | Disagree)
neoelectronaut Avatar
137 months ago
The troll responses in this thread are going to reach ridiculous levels.:rolleyes:

I don't get why anyone would buy this cheap-looking expensive phone when the 5s is just $100 more. Seriously, if you can afford 5c then you can afford the 5s. 5s is sooo much better.
I'll field this one.

1) I enjoy the colored back of the phone. It brings a splash of color to a line of products that has been dull for so long.

2) The rounded polycarbonate back of the phone is more pleasant to look at and hold as compared to the cold, industrial looking and feeling 5s.

3) I saved $100 by going with the 5c. That money allowed me to purchase Applecare+ for my phone.

4) I'm not the shallow sort of individual that cares what other people think about the phone I use. I mean, really? Grow up, people. If you think my phone is "cheap-looking" I don't really care. Whatever makes you feel superior, man.
Score: 55 Votes (Like | Disagree)
CarpalMac Avatar
137 months ago
And drop the price by $1-200...
Score: 44 Votes (Like | Disagree)
kas23 Avatar
137 months ago
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.
Score: 37 Votes (Like | Disagree)
TXCherokee Avatar
137 months ago
Make a black one and double your sales by targeting guys as well as teen girls...

Or at least grey.
Score: 29 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
Generic iOS 18 Feature Purple

iOS 18: What to Expect From 'Biggest' Update in iPhone's History

Wednesday March 27, 2024 11:10 am PDT by
At least some Apple software engineers continue to believe that iOS 18 will be the "biggest" update in the iPhone's history, according to Bloomberg's Mark Gurman. Below, we recap rumored features and changes for the iPhone. "The iOS 18 update is expected to be the most ambitious overhaul of the iPhone's software in its history, according to people working on the upgrade," wrote Gurman, in a r...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....