Apple’s iPhone 5C Sales are Plummeting

iPone 5c

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If you were thinking of purchasing an iPhone 5C, now might not be the best time. Reuters reported that Apple Inc. told it’s manufacturers to cut orders of the iPhone 5C for the next three months. Pegatron Corp and Hon Hai Precision Industry Co., (both manufactures for the iPhone 5C) were told to reduce their orders.

Both the iPhone 5S and 5C were launched in September for the holiday season. The 5C is a cheaper version of the iPhone, starting at $100, and the 5S is the “premium” version, which starts at $199.

Several investors stated that the 5C phone was overpriced and would not be recieved well by customers. “This reflects a failure in Apple’s pricing strategy,” said Bevan Yeh, a Taipei-based senior fund manager at Prudential Financial Securities Investment Trust. “The price differentiation between 5C and 5S is too small. It’s an iPhone 5 with plastic casing and isn’t worth the price.”

With the difference only being $100 dollars and up, many people would rather spend the extra money and get a nicer phone. Just three days into Apple’s launch of the iPhones, they had sold 9 million phones. They did not give separate numbers for each phone.

Prudential predicts that it will probably ship around 23 million 5C units till the end of the year, and about 10 million in the first three months of 2014.

“We’ve seen this several times. There are too many moving parts in the supply chain to draw any conclusions,” said Benedict Evans, who works at a research consultancy in London and covers mobile and digital media at Enders Analysis.

Have you tried out the new iPhone 5C?

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