BEIJING, Oct. 17 (Xinhuanet) –Apple has told manufacturers it will reduce orders for the iPhone 5c in the final three months of the year, a source familiar with Apple’s supply chain quoted by U.S. media as saying.
Hon Hai Precision Industry, one of Apple’s major assembly contractors for the iPhone 5c, had its orders for the same period reduced by a third, but at the same time, Apple raised orders for the 5s in the fourth quarter, according to a report from Wall Street Journal.
Analysts said the decision by consumers to spend more on the pricier iPhone 5s benefits Apple. The company's shares rose on Wednesday, touching a one-month high of more than 502 US dollars.
The reception for the 5c has been lukewarm in China, which chief executive Tim Cook has identified as one of Apple's most important markets. Some local bloggers say the price difference between the 5c and 5s is too narrow.
In China, the iPhone 5c is 130 US dollars cheaper than the premium 5s, which starts at 869 US dollars for the 16-gigabyte model.
"As far as emerging markets, the 5c is simply not cheap enough to gain attraction with customers that can buy $150 Android devices," said Morningstar analyst Brian Colello.
Apple is expected to sell 33 million to 36 million iPhones in its fiscal fourth quarter, rising to more than 50 million in the typically strong holiday quarter, which will mark the first full quarter of sales of the new iPhones.