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.

Tag: wsj.com
Related Forum: iPhone

Top Rated Comments

JaySoul Avatar
100 months ago
Don't cut the supplies - cut the price.
Score: 64 Votes (Like | Disagree)
ob81 Avatar
100 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
100 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
100 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
100 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
100 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)

Top Stories

EEC Apple iphone 13

Apple Registers iPhone 13 Models in Eurasia Ahead of September Launch

Friday June 11, 2021 2:16 am PDT by
Nashville Chatter Class has discovered a new Russian-language regulatory filing in the Eurasian Economic Commission (EEC) database pointing towards several unreleased iPhone 13 models that Apple will be launching in the fall. Versions of iPhone running iOS 14 are listed with the model numbers A2628, A2630, A2634, A2635, A2640, A2643, and A2645. None of the numbers correspond to Apple's...
ios 15 home screen icons

iOS 15 Lets You Drag and Drop Images and Text Across Apps

Saturday June 12, 2021 3:17 pm PDT by
Apple this week previewed iOS 15, which is available now in beta for developers ahead of a public release later this year. One smaller but useful new feature added is the ability to drag and drop images, text, files, and more across apps on iPhone. MacStories editor-in-chief Federico Viticci demonstrated the new feature in a tweet: Using cross-app drag and drop on iPhone in iOS 15. Finally 🎉 #WW ...
ipad mini 6

Next iPad Mini Will Allegedly Feature Thinner Bezels, USB-C Port, and Touch ID Power Button

Friday June 11, 2021 1:13 pm PDT by
On his newly launched Front Page Tech website, leaker Jon Prosser has shared renders showing off the alleged design of the next-generation iPad mini, which he says are based on schematics, CAD files, and real images of the device. In line with details shared earlier this month by Bloomberg's Mark Gurman and Debby Wu, Prosser claims that the new iPad mini will feature slimmer bezels around...
iphone12protriplelenscamera

Apple's Orders for Key iPhone 13 Camera Component Expected to Outstrip Entire Android Market

Wednesday June 9, 2021 12:47 am PDT by
Major camera upgrades coming to the iPhone 13 series are putting increased pressure on suppliers to meet Apple's demand for key lens components, according to a new DigiTimes report. Apple has reportedly put Taiwan-based makers of voice coil motor (VCM) components on notice to increase their capacity by 30-40% in order to meet the company's demand, which is expected to outstrip the entire...
apple virtual game controller ios 15

Apple Makes New On-Screen Game Controller Available to Developers on iOS 15 and iPadOS 15

Saturday June 12, 2021 12:36 pm PDT by
During the Platforms State of the Union at WWDC this week, Apple unveiled a new API for iOS 15 and iPadOS 15 that enables developers to implement an on-screen virtual game controller in their iPhone and iPad games with just a few lines of code. While many iPhone and iPad games already offer on-screen controls, Apple's new virtual game controller is available to all developers, easy to add,...
macos monterey tidbits feature copy

macOS Monterey Tidbits: Animated Memoji on Login Screen, Change the Color of the Mouse Pointer, and More

Friday June 11, 2021 10:27 am PDT by
We've highlighted several new features coming in macOS Monterey, such as Low Power Mode and the option to erase a Mac without reinstalling the operating system, but there are some smaller tidbits that we wanted to share. Animated Memoji on Login Screen One small but fun new feature in macOS Monterey is the addition of a personalized Memoji on the login screen, complete with animated facial...
mr white ipod touch 5 protoype3

Unreleased iPod Touch 5 With Chamfered Edges and 30-Pin Dock Connector Shared Online

Thursday June 10, 2021 2:05 am PDT by
Occasional leaker Mr White has today shared interesting images on Twitter of what appears to be an old-school fifth-generation iPod touch prototype with chamfered edges and a brushed aluminum finish. The original iPod touch 5 that Apple released in October 2012 had a unibody anodized aluminum chassis with rounded edges, and was available in several colors, including slate. Another...
maxresdefault

Apple Promotes iPad Pro in New Ad With 'The Little Mermaid' Musical Spin

Saturday June 12, 2021 7:01 am PDT by
In a currently unlisted ad on YouTube, Apple is promoting the versatility, portability, and power of the M1 iPad Pro in a fun musical inspired by The Little Mermaid's "Part of Your World" soundtrack. In the ad, which features the main character using an M1 iPad Pro, Magic Keyboard, and Apple Pencil, multiple users can be seen struggling with their old PCs indoors while hoping that they can...
passwords system preferences

macOS Monterey Features Dedicated Password Section in System Preferences, Built-In Authenticator and More

Friday June 11, 2021 2:32 pm PDT by
macOS Monterey makes several improvements to password management, positioning iCloud Keychain as an ideal password service to replace third-party services like Lastpass and 1Password. In System Preferences, there's a new "Passwords" section that houses all of your iCloud Keychain logins and passwords so they're easier to get to, edit, and manage. There's a similar Passwords section that's...
Dark Sky App Featured

Dark Sky iOS App, Website, and API Now Scheduled to Remain Available Until End of 2022

Thursday June 10, 2021 7:34 am PDT by
Last year, Apple acquired the weather app Dark Sky, and shortly after its purchase, Apple shut down the app for Android. Despite the revamped iOS 15 Weather app taking heavy inspiration from Dark Sky, the weather's app standalone iOS app, web app, and API will remain available until the end of next year, compared to the end of this year, as previously planned. Dark Sky announced in an update ...