Production of iPhone 5C Reportedly Halted By Foxconn

In September 2013, Apple Inc. broke tradition and launched two devices in one event; the iPhone 5C and the iPhone 5S. The former was the company’s attempt to aim at emerging markets with a low cost device while the latter was simply an updated version of its iPhone 5. It has been reported that the primary assembly partner of the iPhone maker, Foxconn, has stopped production of the iPhone 5C at the Zhengzhou plant in China. According to an internet user, who is also a worker at the said plant, stated that production of the device is being halted by Foxconn because it has too many flaws. However, the assembly partner said that it would not be commenting on any individual clients.

It was claimed by the internet user that the plant is thinking of halting production of this model because the iPhone 5C has too many flaws and its cost is about $164. 49 is the code name that was given to the said model and instead, the production capacity that it was occupying is now being used for producing 5X, the code name that was given to the iPhone 5S. A stir has been caused in the market because of this new rumor. Amusement has been expressed by the other users of the internet that the iPhone 5C may turn out to be most short-lived model of the American technology giant ever.

According to another rumor, only the production of the iPhone 5C will be reduced or halted. For now, about 50,000 models of the said device are being produced by Foxconn. As far as sales in China are concerned, the iPhone 5C has not been doing as well as the iPhone 5S since they were both launched on 20th September. The same seems to be applicable in order parts of the world where the devices are available. Some data was obtained from the Chinese smartphone retail chain, which showed that sales of the iPhone 5S sales were about 78.6% while only 21.4% sales were contributed by the iPhone 5C.

As far as the global market is concerned, for every single iPhone 5C model, about 2.23 iPhone 5S are sold. The iPhone orders placed by Apple have been reduced for the fourth quarter of the current year. The iPhone 5C orders placed to Foxconn were cut down by one third while that to Pegatron, its Taiwan-based contract manufacturer were cut down by 20%. It was stated by an institutional investor that the number of orders that were given to Foxconn might be reduced further by 10%.

It was also added that even if the production of the iPhone 5C suffers or is even reduced in the future, it is unlikely to have any impact on the profitability of Foxconn because the manufacturer would utilize the production capacity of that model to produce the iPhone 5S, which offers a higher margin. The iPhone 5C is probably losing demand because it is exactly like the iPhone 5, only available in a plastic body.

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