Weak Demand for iPhone 5c Leaves 3 Million Inventory [Digitimes]

Iphone 5c

Apple has stopped placing orders for the colourful iPhone 5c, as it currently has 3 million units of unsold inventory, Taiwan-based supply chain sources told Digitimes.

The iPhone maker has recorded its highest-ever first fiscal quarter, selling 51 million iPhones between October and December 2013, but the demand for the lower-priced iPhone 5c has been lower than expected. As a result, Apple has a total of 2 million unsold units at ODM Pegatron Technology, and over a million units with telecom carriers and distributors, the sources reveal.

Digitimes notes that the reason for weaker-than-expected demand is the iPhone 5c’s higher-than-expected price tag, and the 4-inch display, which is “rather smaller than the latest standard”. This is kind of interesting, because the iPhone 5s also has a 4-inch display, so from this perspective doesn’t meet the “latest standards”, but it is selling well, as the Apple’s holiday quarter results and other independent market reports have shown.

The Digitimes report suggests that Apple should adjust its smartphone strategy and release products with bigger screens to meet market demand. And if the rumours are true, Apple will release a 4.7-inch, and maybe even a 5.7-inch model later this year.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • Arcsvibe

    Really what did Apple expect? Taking an iPhone 5 and making it plastic would make the public lineup for blocks? I have a 5 and am happy with it. 5S not worth it, waiting for the next offering.

  • Tim

    Of course they do, iphone 5 in a plastic case. This phone sucks. iphone 5 = iphone 5c , but in a premium body.

  • Doug

    I’m loving my 5c. For once, my phone doesn’t need to be in a case all the time, and the 5c’s case is very durable. As for screen size, no issues there. I can do everything with one hand, and so can my wife (who is smaller). It’s a phone and not a tablet — do we need to bleed the two into one device? I see people talking on their Android phones, and they look rediculous. Same when they are taking pictures. 4 inches is plenty to do what I want.

  • ????Dennis

    I think the problem which the 5c is that they look like toys. They should have only made a black and white carbon fibre iPhone. They could have still called it the 5c (carbon edition). Then it would have looked cooler, been cheap to make and have a premium feel.

    They really f’ed up with the colour scheme and price. Maybe if they would have made the front of the phone the same as the back then maybe… But the way it is, it just looks like an iPhone 5 with a cheesy case.

  • Supacon

    The 5c is hardly compelling when you can get a much more advanced, newer phone for only a small amount less. Also, I think they missed out on making colors that would actually appeal to people. Deeper, bolder colors that would appeal to men are notably absent, as well as the obvious safe bet of ‘black’.

    I suspect the 5c would do better if it were another $100 cheaper and available in more and more compelling colors. But for most people the colors aren’t that interesting because 90% of people just slap theirs in a case anyways.

  • Steve

    The 5C is an absolute joke of a phone. Steve would of never approved. There was absolutely no reason to even create the 5C, when they already had a great looking 5. All they had to do was mark down the 5 and it’s sales would of sky-rocketed.

  • Steve

    This is a tell-tale sign of a very weak CEO. I fear for the future of the company, if this is what we can expect for future iPhone releases.