Apple Inc has informed Hon Hai and Pegatron, two biggest manufacturers of the new iPhones in China, about its projection for the last quarter of 2013 primarily on cutting down iPhone 5C orders while requesting for an increase of iPhone 5S production.
The estimated reduction on orders to Pegatron Corp will fall by 20 percent said by some sources. As the major manufacturer of Apple’s latest flagship smartphones, it is responsible for two thirds supply of iPhone 5C devices. The expected loss will drastically undermine Pegatron.
Hon Hai Precision Industry Corp, on the other hand, is also notified to trim down iPhone 5C production by 30 percent according to the report of Wall Street Journal. The company, which now allegedly freezes hiring new employees because of Apple’s warning, is the manufacturer the remaining third of the iPhone 5C.
On top of the cutback in the assembly line, there is also news that a component supplier of iPhone 5 has received a notice suggesting an almost 50 percent drop from orders, meaning Apple is already into pace of reducing volumes even more.
Alongside the slow demand for iPhone 5C, Apple has increased orders for the iPhone 5S, seeing that it has more popular demand as supported by previous reports. The anticipation for a higher demand in gold iPhone 5S has contributed to Apple’s concentration in gearing up the supply for the more profitable iPhones.
Recently, inventory reports indicated the supply for iPhone 5S is dwindling in just a span of one week. Piper Jaffray’s analyst Gene Muster recorded a decrease of supply availability from 27 percent to 6 percent per checking with 60 Apple stores. This is particularly different to iPhone 5C, the mid-range priced iPhone in colorful plastic, which has constant supply availability.
In addition, Consumer Intelligence Research Partners presented a survey analysis that premium iPhone 5S is outselling the affordable iPhone 5C. Figures showing how much percentage accounted for each Apple products purchased by the American consumers in the last week of September revealed that in the total iPhone sales, 64 percent goes for the iPhone 5S and the iPhone 5C only got 27 percent while the remaining 9 percent comes from iPhone 4S. Therefore CIRP concluded the two to one ratio for iPhone 5s and iPhone 5C sales.
Earlier, Apple proclaimed that it has sold 9 million units of the iPhones during the first week of release. However, the separate sales for the iPhone 5S and iPhone 5C was not specified.
iPhone 5S has an impressive spec sheet featuring a Apple A7 chipset with ARM based dual core processor clocked at 1.3 GHZ. It runs the latest iOS 7.0.1 and comes with advanced sensors. Sporting 8 MP dual-LED camera and weighing only 112 g, the most interesting technology of the device is the Touch ID, or fingerprint sensor that the iPhone 5C does not have. iPhone 5C is bit heavier and made up of plastic polycarbonate body that is considerably cheaper that iPhone 5S given it was sold on even a lower price by retailers like Wal-Mart.