MORE Evidence That The iPhone 5C Is A Disappointment
If checks are correct, the iPhone 5C might be a bit of a disappointment for Apple (NASDAQ: AAPL)—at least so far.
Chinese site C Technology reported that Apple has cut 5C production from 300,000 to 150,000 units per day. This site is considered a reliable source among the Apple rumor watchers after releasing accurate 5S/5C images prior to the launch.
The site also reported that the grey market price for the 5C has dropped to a range of $489-$539—far below the phone’s official price of $726.<?p>
The grey market, where a product is bought and sold by retailers who aren’t authorized to serve as a dealer, is a strong presence in China. Assuming the China Mobile (NYSE: CHL) deals takes place, the disparity between the grey market and the official price could impact dealer revenue, experts fear.
If the supply cut is true, keep an eye on these Apple manufacturing partners:
- Cirrus Logic (NASDAQ: CRUS)
- QUALCOMM (NASDAQ: QCOM)
- Broadcom (NASDAQ: BRCM)
- Skyworks Solutions (NASDAQ: SWKS)
- TriQuint Semiconductor (NASDAQ: TQNT)
- RF Micro Devices (NASDAQ: RFMD)
- Avago Technologies (NASDAQ: AVGO)
Data released by Experian Marketing Services found that the iPhone 5C failed to generate the buzz of the 5S. Data from the week ending September 14, the week of the 5C/5S launch, showed that 43 percent of all internet searches related to iPhone launch were for the iPhone 5S while only 11 percent were for the 5C.
Also interesting to note, it appears that AT&T (NYSE: T) is the early winner in the 5S/5C adoption race. 0.67 percent of all activated 5S and 5C phones were active on its network. Next was Verizon (NYSE: VZ) with a 0.51 percent share, Sprint (NYSE: S) at 0.12 percent, and T-Mobile (NYSE: TMUS) at 0.07 percent.
Data show that throughout the carriers, the iPhone 5S now accounts for about 1.05 percent of all phones in the United States compared to just 0.31 percent for the 5C.
To be fair, these data are from September 22—the latest reliable data available. New data showing the buying habits of those non-Apple enthusiasts are likely to be more 5C friendly but so far, all indications are that the 5S is selling better than expected and the 5C, worse.
Disclaimer: At the time of this writing, Tim Parker was long Apple.
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