Market Overview

Is Apple's iPhone 5C The Biggest Flop Of The Year?

Apple (NASDAQ: AAPL) is unlikely to release specific sales figures for the iPhone 5C, but a new manufacturing report is very revealing.

According to DigiTimes, Hon Hai Precision Industries (OTC: HNHPF) will stop producing the iPhone 5C at its Foxconn factory in Zhengzhou, northern China.

The manufacturer plans to shift capacity to the iPhone 5S, which became Apple's most popular phone during the September quarter.

Little else is known about the production plans, but the DigiTimes reports pointed out that Foxconn obtained 30 percent of total iPhone 5C production orders. Pegatron Technology is reportedly handling the remaining 70 percent.

Several reports have claimed that Apple has reduced iPhone 5C orders from both firms.

Related: iPhone 5C Selling Out From One Carrier

DigiTimes' latest report tells two stories. On one hand, it reminds investors that while a plastic, high-priced iPhone may be good for margins, it is not necessarily what consumers want.

It also reminds investors of the power of the iPhone 5S. The iPhone 5C may be a flop -- it may even be the biggest mistake Apple has made since it replaced Google Maps (NASDAQ: GOOG) with its own mapping application. But the iPhone 5S is selling so many units that investors may never notice.

Of course, without specific sales figures for any iPhone, investors cannot be 100 percent sure that the iPhone 5S is leading the pack. But when visiting the Apple Store on September 20 (the day the 5S and 5C were released), Benzinga could not find a single person that wanted the iPhone 5C. There were dozens (perhaps hundreds) of people waiting in line, and they all wanted the same smartphone -- the iPhone 5S.

Thus far, the only consumers who seem to be interested in the iPhone 5C are the same people who would have purchased the iPhone 5 if it was still available. The bright colors may be attractive to some users, but most people prefer the gold iPhone 5S.

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

Posted-In: Apple Digitimes foxconn Hon Hai Precision iPhone 5News Rumors Tech Best of Benzinga

 

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