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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RE: Comment by Radio
by tylerdurden on Wed 16th Oct 2013 16:26 UTC in reply to "Comment by Radio"
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[3]: Comment by Radio
by tylerdurden on Wed 16th Oct 2013 22:56 in reply to "RE[2]: Comment by Radio"
tylerdurden Member since:

Your sources state that the 5s and 5c both net Apple just about the same margin, the 5s being slightly higher (so they make more money on the non-plastic parts).

Reply Parent Score: 2