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Yet another sign that
Apple'sAAPL plastic iPhone is not performing well at retail.
According to
DigiTimes, Pegatron (the chief manufacturer of the iPhone 5C) has had its orders reduced by more than 50 percent.
This is especially significant because Pegatron has reportedly received 70 percent of the total iPhone 5C orders from Apple.
In theory, Apple could be reducing its orders at Pegatron to increase orders at another manufacturer. However, Foxconn owner
Hon Hai Precision IndustriesHNHPF has reportedly reduced its iPhone 5C orders multiple times. In fact, Foxconn may
stop producing the iPhone 5C altogether at its factory in Zhengzhou, northern China. If true, the iPhone 5C is expected to be replaced by additional units of the iPhone 5S, which has sold very well since it was released on September 20.
On
Apple.com, consumers who order an iPhone 5S today will still have to wait three to five days before the product is shipped. This indicates that demand has remained fairly high a full two months after the smartphone was released.
The iPhone 5C, however, still ships
within 24 hours.
Virgin Mobile, the one carrier that had
sold out of the iPhone 5C, is now
shipping all units without delay.
Related:
While there was a lot of excitement for the iPhone 5C before it was announced, consumers responded to the actual product with a collective yawn. The iPhone 5S drew
massive crowds when it arrived, overshadowing any success the iPhone 5C may have had.
But retailers seemed to be just as fearful of the iPhone 5C as analysts were the day it was unveiled.
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responded to the product's low demand by
reducing the contract price ahead of the iPhone 5C's release.
T-MobileTMUS quickly followed suit and
reduced the price for those purchasing the device without a contract. Other retailers eventually did the same.
The iPhone 5C is expected to be a hot item on Black Friday, thanks in part to Wal-Mart, which will
sell the plastic smartphone for $45. The fee requires a two-year contract, but it also comes with a $75 gift card.
In other words, Wal-Mart is actually
paying customers $30 ($75 gift card - $45 fee = $30) to take home an iPhone 5C.
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 @LouisBedigianBZLoading...
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: NewsRumorsTechDigitimesfoxconnHon Hai Precision IndustriesiPhone 5CiPhone 5SPegatronT-MobileWal-Mart
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