Boston, MA 10/18/2013 (wallstreetpr) – As per a person in the know, Apple Inc. (NASDAQ:AAPL) has informed manufacturers of the iPhone 5C that it will be cutting-down orders for the device in the last three months of 2013. Pegatron Corp is a major manufacturer of the company’s iPhone 5C. The technology giant has now cut down its orders by 20% said an unidentified person as the information is still very sensitive. Hon Hai Precision Industry Co is another iPhone 5C manufacturer and 1/3rd of its orders have been cut down by Apple Inc. (NASDAQ:AAPL), for the same period.
The overpriced handset
The company had launched 2 new smartphones, the iPhone 5C and the iPhone 5S simultaneously in September, just ahead of the holiday season which is typically when sales reach their peak levels. In the U.S, the iPhone 5C is retailing at $100 less that the premium version iPhone 5S. The latter’s 16GB model is being sold at a retail price of $649. Some analysts are of the opinion that cutting the 5C orders will send out signals to the public that the handset had been overpriced.
Almost every market watcher feels that as far as the iPhone 5C is concerned, the company faltered on the pricing strategy. The general feeling is that the pricing difference was too small especially when you take into account the fact that it was a lower-end piece with plastic casing.
Important market
According to Tim Cook, the company’s Chief Executive Officer, China is one of the most important markets for Apple Inc. (NASDAQ:AAPL). Even here, the iPhone 5C had a very lukewarm demand and local bloggers are saying that the price difference between the 5S and the 5C is too narrow.
Earlier, the company had said that combined 9 million, 5C and 5S handsets had been sold within the first three days of the launch of these devices. However, Apple Inc. (NASDAQ:AAPL) had not clarified the separate sales figures for these 2 devices.
