Apple Cutting iPhone 5c Production at Two Major Suppliers

Apple has notified two of its major iPhone 5c suppliers that it is reducing orders of the smartphone for the fourth quarter, reports The Wall Street Journal. Taiwanese assemblers Pegatron and Foxconn (also known as Hon Hai Precision Industry Co.) were given notice by Apple that fourth quarter production of the device would be slowed, with the former being told orders would be cut by less than 20% and the latter being told that orders would be cut by one-third of the original production. A report by Reuters corroborates the claim of production cuts at Pegatron.

iphone5c.jpg

Apple told its Taiwanese assemblers Pegatron Corp. and Hon Hai Precision Industry Co. that shipments of the iPhone 5C in the fourth quarter would be cut, the people said. Pegatron, which analysts say assembles two thirds of the iPhone 5Cs, was told orders would be cut by less than 20%, said a person familiar with the matter. Hon Hai, which assembles the remaining low-cost iPhones, was told orders would be cut by a third, said two people familiar with the matter.

One component supplier was notified of a 50% cut in orders for iPhone 5C parts, which analysts say could suggest a slowdown in device shipments next year, or mean an inventory reduction by assemblers.

Reflecting continued tight supplies of the higher-priced iPhone 5s, sources at Foxconn have also indicated that Apple has requested an increase in production for those models.

Apple's notice to suppliers comes after various reports about the iPhone 5C's market demand and production over the past month, with one report stating last week that Apple was cutting iPhone 5c production from 300,000 units to 150,000 units per day, as the iPhone 5c seeing much greater availability compared to the iPhone 5s. New data from the Consumer Intelligence Research Partners last week also stated that the iPhone 5s has been outselling the iPhone 5c by more than a two-to-one margin since the launch of both devices last month.

It remains difficult to say, however, whether Apple's cuts are a result of lower than expected demand or perhaps simply part of a planned scaling back following an initial surge to ensure that distribution channels are adequately filled heading into the holiday season. With strong availability of the iPhone 5c continuing, a number of third-party retailers have been discounting the device in order to entice customers.

Apple announced last month that the iPhone 5s and iPhone 5c had sold a record nine million units during their launch weekend, but the company did not break down the sales distribution between the two models. However, a report from earlier this month stated that the iPhone 5c finished second in sales during the month of September at US carriers AT&T and Sprint, and finished within the top three in sales at all four major carriers, which suggests that the lower-cost iPhone is at least selling fairly well.

Related Forum: iPhone

Top Rated Comments

JaySoul Avatar
130 months ago
Don't cut the supplies - cut the price.
Score: 64 Votes (Like | Disagree)
ob81 Avatar
130 months ago
If this had been a Samsung phone that got discounted and production was pulled back on, we would say that it was because the phone was not selling as well as expected. We wouldn't miss a beat.

The iPhone 5c is not selling as well as expected. The 5s is selling better than expected. 5s was ramped up. 5c scaled back.

End of story.
Score: 44 Votes (Like | Disagree)
billnye97 Avatar
130 months ago
What people didn't want an expensive phone that had last year's technology in it? Shocking.
Score: 24 Votes (Like | Disagree)
musika Avatar
130 months ago
I think it's time for Apple to cut it back on the front page of apple.com, too. I'd rather see the fancy 5s on the front page.
Score: 23 Votes (Like | Disagree)
KanosWRX Avatar
130 months ago
No surprise here.. trying to resell a iPhone 5 like this just seemed like a pretty big disaster from the start. The iPhone 5 at least looked like a quality device.. this one looks like it should start at 0 dollars on contract, and sell for less then 500 off contract. Instead they sold it much higher when people would just say, well if I am paying that much, might as well just get the 5S. Or like most Apple people.. they just like the latest and greatest stuff so they could care less about this.
Score: 21 Votes (Like | Disagree)
Mums Avatar
130 months ago
Stop making plastic iGarbage and bring back the pro products Apple!

I want a new 17" MacBook Pro.
Score: 16 Votes (Like | Disagree)

Popular Stories

iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...
Multi Display CarPlay 1

All-New Apple CarPlay Launching Later This Year With These 5 New Features

Friday September 29, 2023 11:29 am PDT by
At WWDC 2022 last year, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple said the first vehicles with support for the next-generation CarPlay experience would be announced in late 2023, but it has still not shared any additional...
iOS 17

Everything New in iOS 17.1 Beta 1

Wednesday September 27, 2023 1:57 pm PDT by
Just a week after releasing iOS 17, Apple has seeded the first beta of iOS 17.1 to developers. iOS 17.1 adds some features that Apple promised were coming to iOS 17 in the future, plus it refines and improves some existing features. This guide covers everything new in the first iOS 17.1 beta. Apple Music Favorites You can favorite songs, albums, playlists, and artists in the iOS 17.1...
iPhone 15 Pro lineup

iPhone 15 Pro Overheating Concerns Highlighted in Two More Reports

Thursday September 28, 2023 6:25 am PDT by
iPhone 15 Pro and Pro Max overheating concerns continue to make headlines this week, with the topic highlighted by The Wall Street Journal and Bloomberg. Both of the reports document anecdotal complaints from customers, and outline potential causes, but it's unclear how many devices are actually affected. Bloomberg said the overheating could be caused or compounded by the iPhone's setup...
iPhone 15 Pro lineup

Apple to Address iPhone 15 Pro Overheating Issue With iOS 17 Update

Saturday September 30, 2023 9:28 am PDT by
Apple plans to release an iOS 17 update to address a bug that may contribute to the reported iPhone 15 Pro and iPhone 15 Pro Max overheating issue, according to a statement the company shared today with MacRumors and Forbes reporter David Phelan. Apple also says some recent updates to third-party apps have overloaded the system and contributed to the overheating issue. The report notes that...
iPhone 15 USB C Port Keynote

Some USB-C Power Banks Fail to Work With iPhone 15

Thursday September 28, 2023 2:06 pm PDT by
Apple added a USB-C port to the iPhone 15 lineup this year, allowing it to work with USB-C cables, USB-C power banks, and more. It turns out that some USB-C battery packs are not working properly with Apple's iPhone 15, resulting in charging issues. As highlighted on Reddit and the MacRumors forums, not all existing USB-C power banks can be used with the iPhone 15 models, perhaps due to the...
iOS 17

Apple Releases iOS 17.0.2 and iPadOS 17.0.2 for All iPhones and iPads

Tuesday September 26, 2023 12:47 pm PDT by
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...