Friday 11 October 2013

iPhone 5C Flops in China, Production Cut to Half

Owing to its price that's really 4/5th that of the iPhone 5S in the Chinese market, where people predominantly buy fully-unlocked phones rather than subsidized ones, iPhone 5C is shaping up to be a failure. Apple reportedly cut its production by half.

Chinese publication C-Technology reports that production of the iPhone 5C is cut from around 300,000 units a day, to around 150,000 units a day, on average. Apple had called in favors from various current and former foundry partners in China, to contribute to its production capacity, in anticipation of heavy sales in value-conscious markets.
iPhone 5C flunked not because it's a bad product, but because of the way it's priced. Leading western analysts predicted that the base model of phone could be sold for $0 on contract, stateside, and its 32 GB variant for no more than $99; and contract-free pricing no more than $350. That however, wasn't the case to be. Contract free, the iPhone 5C retails for roughly 75 to 80 percent the price of an iPhone 5S.

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