iPhone 5c Sales and Demand: Handset Popularity So Weak That Inventory is Piling Up Sky High
The iPhone 5c was supposed to be an attractive alternative to the premium priced, but widely coveted, iPhone 5s. However, iFans have overwhelmingly opted to purchase the 5s instead. This had led to one major problem for Apple, and one in which it has little to no experience dealing with in the past 10 years, excess inventory. Maybe Tim Cook should call up Microsoft and get some advice because it looks like the Cupertino, Calif.-based technology company will be taking a massive loss.
So why can't an iPhone 5c price cut be instituted? After all, big box retailers like Target and Walmart discounted the 5c heavily within weeks of its Sept. 20, 2013 launch.
Well, "due to their contracts with Apple and high purchasing prices, most telecom carriers and retailers are unlikely to offer significant price cuts in the short-term for the iPhone 5c," Digitimes writes. "Currently, iPhone 5c is priced at US$99 (16GB) and US$199 (32GB) with 3G service bundle plans, and US$549 (16GB) and US$649 (32GB) for the smartphone itself, the sources noted." Quite simply, that stinks for Apple.
The iPhone 5c was also supposed to be affordable. The "c" in 5c was widely referred to as meaning cheap. Yet a "higher-than-expected price point and [expensive to produce] 4-inch display" made the iPhone 5c only marginally cheaper than the 5s.
Previous rumors have called the iPhone 5c nothing more than a stop-gap aimed at attracting more budget-conscious users. Also, the aluminum body Apple uses in its smartphones is tough to create, and creating two phones with such a body would have been impossible. Thus plastic was used to make the 5c.
But don't expect Apple to go out of business over one misfire. According to various sources "Apple's miscalculation should help it adjust its smartphone strategy to release products with bigger screen sizes to satisfy user demands."
Also, sales of the iPhone line of smartphones has never been stronger. "Apple previously announced its quarterly smartphone sales had reached a new high at 51 million units." Pretty impressive no?
Now, if the iPhone 5c leftover stock can't be sold will it end up like the infamous E.T.: The Extra Terrestial videogame for Atari? Their colorful exteriors are too cute to be buried.
Did you buy an iPhone 5c and now find yourself regretting the purchase big time? Or did you scoff at the notion of a plastic iPhone and bypass the device altogether? Let us know in the comments section below.
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