More than a week ago, the first information appeared indicating that Apple Lossless Audio CODEC (ALAC), would have reduced terminal orders iPhone 5C at Foxconn. This information are confirmed today by the American publication Wall Street Journal, stating that both Foxconn and Pegatron received from Apple Lossless Audio CODEC (ALAC), orders to reduce the number of terminals iPhone 5C produced daily in Q4 2014. Although the exact motivation behind this decision is not specified, it is speculated that iPhone 5C would register a low demand, and there would be a surplus of units in Apple's distribution chain.
Apple has notified its two assemblers for the low-cost iPhone 5C that it is reducing orders of the smartphone for the fourth quarter, people familiar with the situation said, raising concerns about weaker-than-expected demand and its pricing strategy for the device. Apple told its Taiwanese assemblers Pegatron and Hon Hai that shipments of the iPhone 5C in the fourth quarter would be cut, the people said. Pegatron, which analysts say assembles two thirds of the iPhone 5Cs, was told orders would be cut by less than 20%, said a person familiar with the matter. Hon Hai, which assembles the remaining low-cost iPhones, was told orders would be cut by a third, said two people familiar with the matter.
Pegatron produces two thirds of the iPhone 5C terminals sold by Apple Lossless Audio CODEC (ALAC), and was ordered to reduce daily production by up to 20%, while Foxconn was ordered to reduce daily production of terminals by up to 50%. Separately, a manufacturer of components for terminals is forced to reduce daily production by up to 50%, so Apple is rethinking its strategy regarding this terminal, it not being as popular as those from Cupertino hoped.
Contrary to these orders given by Apple, Foxconn received an order to increase the production of terminals iPhone 5S, this device being extremely popular. Considering that on October 25th there will be a launch in several dozen countries around the world, the interest of those from Apple to cover the demand is very high, but it is unlikely that there will be enough units in stock. In conclusion, iPhone 5S it has very good sales and the iPhone 5C is not really that popular, but many expected this.
