According to reports Apple Inc. (NASDAQ:AAPL) has informed the maker of its cheaper iPhone 5C model to decrease the production as the demand reduces for the last three months of 2013, reveal by a source familiar with the supply chain.
The smartphone manufacture after launching its two models in September, a high end iPhone 5S and lower end iPhone5C has aggressively sold, but the recent report say that 5S has far stronger sale than cheaper 5C model. Due to decrease in demands for the handset the company has cut its manufacturing order also.
But analysts has also rated positively the consumers’ move, by saying that to purchase the high end handset would benefit the smartphone maker’s shares that recently touched $502 a one-month high.
Chris Caso, analyst at Susquehanna has said that the high end device of Apple Inc. (NASDAQ:AAPL) is highly sale out as it is a new device, and the less sale of 5C as it is old version of the iPhone which was re-launch by the manufacturer.
While analyst at Canaccord Genuity said that the company iPhone 5S is selling more than 5C by 2.5 times to 1, increasing the company’s margins.
According to the Reuters reports that an anonymous source has revealed, Pegatron Corp, has decrease the order of iPhone 5Cs over 20%, the firm which assembles many of the company’s iPhone 5C.
According to Wall Street Journal, another assembly contractor for the devices, Hon Hai Precision Industry Company has decreased orders for the same period by a third. The report also quoting two of the company executives, added that the US firm had increased demands for the 5S for the Q4.
In the US, the 5C is sold at $100 cheaper than the previously launch 5S, which for the 16 GB model sell for $649. The decrease in 5C demands will strengthen investor outlook that the cheaper 5C phone was expensive and would not be purchase by consumers. Apple Inc. (NASDAQ:AAPL) shares rose 0.59% to $501.67 in current session.
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