Apple is planning to cut the production of iPhone 5C devices by 50% since the demand for them is rather low. The information is provided by Chinese mass media. At this point, Apple’s facilities are producing 150 000 devices a day instead of 300 000.
It should be reminded that iPhone 5Ccame into market simultaneously with iPhone 5S. Probably, that was Apple’s mistake. The demand for iPhone 5S (a more powerful model) is rather high, thereby reducing the demand for a cheaper model, which is 5C.
Another reason is the fact that iPhone 5C used to be positioned as a low-price model but it is actually not that cheap, which scares buyers away and makes them purchase iPhone 5S instead.
Meanwhile, Apple’s stock is consolidating within a relatively narrow price range after a strong rally. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of AAPL:
