Linked by Thom Holwerda on Wed 16th Oct 2013 08:46 UTC

Apple has told two suppliers of its lower-cost iPhone 5C that it is reducing orders in the fourth quarter, according to a report by Dow Jones news agency Wednesday, raising concerns about weaker-than-expected demand for the new product.

Apple began selling it's the new low-price option last month in 11 markets, including the U.S. and China, but consumers have focused on the more expensive 5S model, which was launched at the same time.

While demand for the costlier version, that comes with a fingerprint sensor and faster chips, outstripped expectations - especially the gold-colored version - the iPhone 5C has failed to generate as much interest.

Leave it to the media to turn higher-than-expected demand for the more expensive model into bad news.

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A few days after launch, Chinese sellers already started giving discounts for the 5C:

During the iPhone launch, up to 3.5 million 5C (of the 9 million 5C+5S shipped) may have been stuffed into the channel:

In most markets, the 5S is outselling the 5C between 3 and 5 to one:

Carriers and retailers are launching special promotions for the 5C in the U.S., Europe and elsewhere:

I think it is pretty clear by now that the 5C's success fell short of Apple's expectations. If there was a plan to grab more marketshare with the 5C, then it failed miserably. Still, even one fifth of the 5S sales is nothing to scoff at.

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