- Low iPhone 5C sales results in Apple cutting down production by 35%
- Galaxy Note 8, a new 8-inch tablet announced by Samsung
- Zero Day Exploit hits Microsoft again, this time on Internet Explorer
- Microsoft’s newfound success with surface and cloud services
- Amazon launches Cloud Drive mobile app, with limited features
It would be difficult to presume what expectations Apple had from iPhone 5C, but it would be pretty safe to say that it definitely didn’t turn out as the People had expected.
Nope, there is absolutely nothing wrong with its performance, performance is quite impressive to say the least. It is the cost that people are disappointed with. Maybe that is indeed one of the reasons why iPhone 5C sales figures are nothing to boast about, as a result of which Apple is cutting down its production by 35 percent.
Tina Teng and Shawn Lee, Senior Analysts of Smartphones for DisplaySearch, posted they have indeed confirmed that Apple is cutting back iPhone 5C production by 35 percent, while on the brighter side, iPhone 5S is so much in demand that its production has been increased by a staggering 75 percent. They also point out the fact that the early rumors of how people perceived iPhone 5C to be the cheaper iPhone model, and realizing post Apple iPhone event, that iPhone 5C is in fact iPhone 5 replacement and hence the iPhone 5C didn’t get that drastic price cut that everyone expected, which is said to be what turned against Apple. People expected the difference of cost between the cheaper iPhone model and iPhone 5S would be more than just $100. 5C starts at $549, and 5S at $649. And unsurprisingly, only few days after the pre-orders began, news started to float that 5S was outselling 5C by huge numbers.
The iPhone 5C, which Apple’s designer Sir Jony Ive calls “unapologetically plastic”, could have won Apple a lot of new users and fans in countries where Apple is keen to grow its user base. Like in India, 5C 16GB will sell (5C and 5S will be available there from November) at approx. Rs. 42,000 and the 32GB model for Rs. 54,000, which is more or less the same cost at which iPhone 5 was selling when it launched last year. 5S will sell at the exorbitant cost of approx. Rs. 54,000 for its 16GB model.
Apple will end the production for iPhone 5 by this year-end at the most, but the failure of 5C puts Apple in a tricky situation, as besides 4 and 4S (Both of whom won’t support the next iOS release), there is no low-end iPhone model that Apple can target to those customers. And not to forget the fact that Apple might even stop the production of 4 soon.
Maybe Apple will address this issue in the upcoming iPad and iPad Mini event next week Tuesday. Rumors suggest that the new iPad design has been changed to resemble a bit of iPad mini, the new iPad mini will have Retina display, and both the devices will most probably have the Touch ID feature, and will boast the new 64-bit A7 processor introduced in 5S.
Nevertheless, coming back to iPhone 5C, the best option for Apple seems like cutting down the cost of 5C a bit or as the DisplaySearch Analysts suggested, “Continue selling the two-year old iPhone 4 at a lower price to address the mid-range segment.”.
Photo Credit – Pixeden.com/Wikimedia Commons