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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Comment by Radio
by Radio on Wed 16th Oct 2013 13:18 UTC
Member since:

The media is turning it into a bad news because the most expensive model is also the most expensive to manufacture. The average revenue per iPhone sold is going down.

I do not agree if it is good or bad; it's just what they have their eyes on. Apple would earn more money by selling more 5C than 5S, even though the 5S is more expensive.

Reply Score: 2

RE: Comment by Radio
by tylerdurden on Wed 16th Oct 2013 16:26 in reply to "Comment by Radio"
tylerdurden Member since:

Do you have any data on the actual margins for apple between the 5s and 5c?

Reply Parent Score: 2

RE[2]: Comment by Radio
by Radio on Wed 16th Oct 2013 17:09 in reply to "RE: Comment by Radio"
Radio Member since:

And, for comparison, estimation for the iPhone 5:

Even if the numbers in this article are wrong, it seems to me pretty obvious that the cost-to-manufacture difference is less than the retail-price difference between the two models. A bit like how the price difference between different RAM or hard drive capacities of two variants of the same computer/smartphone/media player/etc. is several times higher than the actual cost of memory, even taking into account manufacturing line and inventory management.

Reply Parent Score: 1

RE: Comment by Radio
by JAlexoid on Wed 16th Oct 2013 21:22 in reply to "Comment by Radio"
JAlexoid Member since:

Apple screwed up pricing. Period.

Reply Parent Score: 1

RE[2]: Comment by Radio
by Kochise on Thu 17th Oct 2013 18:18 in reply to "RE: Comment by Radio"
Kochise Member since:

Nope, willing consumers only...


Reply Parent Score: 2