Apple Surrenders To The Bottom Of The Market, Cuts iPhone 5C Production

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Apple Cuts Back Production Of The iPhone 5C (Quartz)
Apple is reportedly set to scale back production on its new iPhone 5C phone just 30 days after its initial launch.

The 5C was Apple's attempt at a "cheap" phone, one that was intended to help Apple recapture some lost market share from the bottom of the market. Late smartphone adopters had been trending toward cheaper, but still high quality Android handsets from the likes of Samsung, and also from Chinese handset makers like ZTE, Huawei, Lenovo, and Xiaomi.

Unfortunately, a cutback on production must mean that the 5C is failing to live up to sales expectations.

We initially speculated that the iPhone 5C's "cheap" price may not have been cheap enough to lure bottom-tiered smartphone users across the globe. Already, 5C sales were being outpaced 4-to-1 by sales of Apple's new flagship, top-tiered iPhone 5S.

This may be an early sign of Apple's impending future. While cheap Android handsets flood the market, Apple will likely have to reassert its position as a high-quality, high-margin device maker versus reaching for scale in a crowded space. Read >

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