Apple Reportedly Decreasing iPhone 5C Production by 35% and Boosting iPhone 5S by 75%
An NPD report recently claims the iPhone 5S fabrication will soon be boosted by roughly 75%, while the 5C will see a drawback of 35%. Citing channel checks, NPD Display Search “can confirm” a slowdown in iPhone 5C production, which supposedly comes along with a hefty increase in 5S orders.
The purported data was revealed in a post to NPD’s analyst blog written by senior analysts Tina Teng and Shawn Lee who said the sales performance of Apple’s iPhone 5C has been thus far disappointing. The analysts note two factors as being accountable for the poor showing: a miscalculated China launch and consumer expectation that the phone would be “cheap.”
According to the post, Apple raised the iPhone 5C’s price to reach an acceptable profit margin when Chinese carriers offered competitive subsidies during the country’s Golden Week holiday. This suggests Apple may have miscalculated the 5C’s launch timing according to Teng and Lee, as the company was supposedly targeting the Chinese market with the device. Furthermore, the analysts said industry watchers and consumers were unpleasantly surprised by the 5C’s base price tag, which was anticipated to be substantially lower than Apple’s previous offerings. This assumption was based on early rumors claiming that the handset would be Apple’s first low-cost offering.
Although the blog post may not be the most carefully reasoned, the data it was based on could be accurate. If so, the production cut for the iPhone 5C and increase for the iPhone 5S is substantial, even though Apple’s original forecast remains unknown. The analysis comes on the heels of a separate report from The Wall Street Journal, which cited sources as saying Apple is cutting iPhone 5C production. In a breakdown publication, Pegatron would see a 20% decrease in orders, while Foxconn is planning to cut production by roughly one third. The same sentiment was echoed by Reuters shortly after. We’ll have to wait and see what ends up happening.
Source: NPD Display Search