According to several supply chain checks reported by NPD DisplaySearch, Apple is decreasing production of its iPhone 5C by 35 percent, while production of the higher-end iPhone 5S will see a 75 percent increase in order to catch up to demand.
Adding to the lower production is NPD’s report that the iPhone 5C was released in China with expectations of carrier subsidies. Unfortunately, these local carriers had to pick and choose which phones to subsidize. By choosing to subsidize new iPhone 5C subscribers, it leaves carriers with less to subsidize, said NPD analysts Tina Teng and Shawn Lee.
“Perhaps Apple miscalculated the launch timing, considering they were aiming at the China market.”
To provide context, the iPhone 5C is basically a repackaged iPhone 5 with a plastic shell and different cellular antennas that allow for more LTE bands. While the iPhone 5S is still seeing delays in shipping, the iPhone 5C has been in ample supply.
We are sure to hear the whole story during Apple’s call with Wall Street analysts on October 28.
[Source: CNET]
