According to some recent information unveiled by sources close to Apple’s components suppliers from Taiwan, the Cupertino giant has some pretty serious problems with the iPhone 5C smartphones as it seems that company has millions of unsold iPhone 5C phones piled up in warehouses.
Before it was launched, everybody believed that the iPhone 5C is a version for users with modest budgets however the phone was quickly surpassed by the iPhone 5S and Apple fans decided that the colored case of the iPhone 5C is not compelling enough to deserve the $549 price for the retail package.
So, we can safely reach the conclusion that Apple’s attempt to launch a somewhat cheaper iPhone was a failure.
DigiTimes claims that 1 million iPhone 5C units are simply unsold by mobile operators and other 2 million units are at the Pegatron Technology warehouses. This means that so far there are 3 million unsold iPhone 5C units. Units that we know about, of course.
A while ago Apple’s CEO Tim Cook said that Apple is not in the business of creating junk devices and the company never considered releasing low cost smartphones. This statement affected the sales of the iPhone 5C and Apple reduced production of the model during the 2013 winter holidays.
Now Apple is trying to compensate by increasing the company’s efforts to penetrate markets such as India, Brazil and Indonesia precisely, Apple resumes the production of the iPhone 4 models, at a lower price, without trying to directly promote the iPhone 5C model, which is more expensive.
Apple has also started to recruit engineers and managers for Asian markets with the purpose of reducing the time spent on developing new products and releasing them on Asian markets. However these are not good solutions for getting rid of the millions of iPhone 5C units that will probably still continue to wait in warehouses. Most likely the price of the iPhone 5C will be dropped quite a lot after the launch of the iPhone 6.
Article by gev.com