iPhone 5C Orders Reduced By Apple - Again! (AAPL)
Apple (NASDAQ: AAPL) has reportedly reduced the manufacturing orders of its new plastic iPhone.
According to Reuters, the Cupertino, California-based tech giant has requested fewer iPhone 5C units from two different suppliers.
Pegatron has had its orders reduced by less than 20 percent. In a previous report by The Wall Street Journal, Hon Hai Precision Industries (OTC: HNHPF) -- the owner of Foxconn -- reportedly had its orders reduced by one-third.
Another report claimed that Apple may have reduced its orders by as much as 50 percent.
Out-Shined From The Start
The iPhone 5C has had a rough time competing since the day it was unveiled. As a plastic remake of last year's iPhone 5, the iPhone 5C does not offer any notable attributes that could inspire consumers to upgrade from a recent predecessor.
It also a bit more expensive than analysts anticipated.
In August, ABG Sundal Collier analyst Per Lindberg told Benzinga that Apple could not afford to degrade the iPhone's "premium pricing status" by selling a cheap smartphone. But he never dreamed that the contract-free MSRP would start at $549.
"I think the iPhone 5C -- or whatever they want to call it -- will probably be around…$300 to $400," Lindberg predicted.
At $549, the iPhone 5C is just $100 cheaper than the iPhone 5S.
The iPhone 5S contains a number of upgrades over last year's model, including the fingerprint scanner known as Touch ID.
When both products were released on September 20, the iPhone 5S drew massive crowds. Benzinga surveyed a line at one local Apple Store, and while consumers were excited to buy the iPhone 5S, no one would admit to buying an iPhone 5C.
Some argue that this is because the company took pre-orders for the iPhone 5C but not the iPhone 5S. If that were true, however, no one would have waited in line for previous iPhones, some of which also had pre-order campaigns.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.