We remember the reports that Apple had ceased orders to manufacturers for the iPhone 5c since the end of 2013, though sadly we didn’t know just how bad this was for Apple. As it turns out, new supply chain sources have told Digitimes that Apple is currently holding on to as many as 3 million iPhone 5c units in inventory that it can’t sell. Two million units are currently in the factories and one million units have already been distributed to carriers.
The usual thing is for Apple to not be able to meet demands for customers, and we’ve seen this with the iPhone 5s, but the fact that the iPhone 5c is too expensive, and too small have made it less attractive than Apple expected, and it’s clear that consumers have manifested what they want.
I called this from Day 1. Apple buyers don’t want plastic cases, they don’t want compromised hardware, they want the best they can get and are willing to pay UP for it. I also added that releasing a cheaper version of the iPhone was tantamount to Tommy Hilfiger selling it’s stuff at Marshalls. Once you break that cherry you take a little luster off the elite brand.
What I called for instead (and this was all way before any of it was announced) was a Larger iPhone that could compete with the android offerings like Samsung Galaxy and Note.
It looks like Apple is getting back on track by announcing that they will be releasing a larger iPhone and this failure was probably a great lesson for them. Apple users don’t want to compromise on hardware, they’ve built a brand on providing the best and charging up for it. To tarnish that reputation is foolish IMO. They should eliminate the 5c altogether and instead build a super no compromise phone and charge double for it, and make even bigger margins, and I bet there would be people lining up for it, begging Apple to take their money for it.
.Samsung Galaxy s4 vs iPhone size-
Here is my post from release day of the 5c back in September-
some quotes from the post-
Every product refresh they make they include great enhancements but I think there is one move they have yet to make but I think would be an absolute monster boost to their sales.
A larger iPhone to me would be a monster hit. As a Samsung Galaxy s3 user I really appreciate the extra screen real estate and I appreciate even more the ability to strap on a cheap aftermarket battery to the back of my s3 which triples the battery life.
I don’t agree with Apple’s tactic of offering a low cost iPhone either with the 5c and it’s plastic parts. Apple has always been synonymous with unapologetic top grade hardware and premium pricing. people were and are willing to pay for it knowing they are getting the best hardware without ever questioning it.
I equate coming out with a lower grade iPhone to a brand like Tommy Hilfiger who for a brief moment was competing with the likes of Polo/ Ralph Lauren and then went and sold out and buried there products into discounters like Marshalls and TJ Max. Forever to be equated with a poor man’s Polo and never will they ever be able to command the premium pricing they once did.
I say instead of offering a cheaper iPhone option that they should have offered a larger iPhone option with a mongo battery and charge even MORE for it. That would have pleased Wall Street I bet.