Foxconn's Zhengzhou Factory to Reportedly Cease Production of iPhone 5c

[Chupa Chupa]

If Apple had kept the 5 around but knocked the price $100 would you say it's too expensive for what it is? Or is the 5C too expensive purely because the case is plastic and not aluminum?

True, but in all things, perception is everything.

If Apple had kept it's previous sales model and just made the 5 the intermediate model and the 4S the budget model no one would be focusing on iPhone 5 sales & it probably would have higher sales #s than the 5C because it appeals to a broader base.

Apple's (Tim Cook's) mistake is it (he) didn't really understand who the 5C customer @ the set price point would be with it's colored plastic back -- mostly parents buying for their young daughters dying for a lime green or sky blue phone, which is a very small universe compared to all iPhone buyers.

 

[Donoban]

Times are different. The 5c seems to be lacking in comparison to the 5s. The 3G and 3GS were the only phones in the lineup when they were introduced so buyer's had nothing released at the same time to compare them to.

I thought the 5c would sell better. I still have yet to see one in the wild.

I'm in japan at the moment and heaps of people have the 5c, must be the colours they are going for. Also noticed a few 5s models but from what I've seen I would say I've seen more 5c in my travels so far.

You might like my story, my class mate comes in with a brand new blue iphone 5c. Starts showing it off etc, as you so with any new toy.

I asked him, why did you buy the 5c and not the 5s?

He responds with, what do you mean? This is the 5s.

Many Lolz were had.

 

[158273]

Its not that the 5S is better. Its just that Apple hyped it to be the low cost phone and it really wasn't.

Apple has NEVER said it was a low-cost phone. It were the journalists, blogs, and websites like this one that hyped it up to be the low-cost phone, plus the general aura that "plastic" equals cheap.

As far as this one's concerned, it's just as good as an iPhone 5, plus Apple experimented with a new design and new materials (which some people love, for the more rounded back, for the durability, for the way it fits into their palm, etc.)

 

[Vtwo]

That's probably because Steve would have had the balls to release it at a competitive price point, without quivering in fear at the though of potentially cannibalising the 5s.

Yes, is was known that Jobs always set prices according to the competition, right?

I am pretty sure 90% of products released under Jobs were deemed overpriced.

 

[Rogifan]

Exactly. Not to mention that the 5c is a slight upgrade over the 5 hardware spec wise (battery, front camera, improved LTE).

My only complaint with the 5c is the color choices. I think if they went with the same color selection as what the 4th gen iPod nano had they would sell much better. At the very least, they should add both a black and a Product RED model.

Yeah I think black would have been a good choice. Maybe we'll get updated colors in 2014.

 

[TonyC28]

Wait wait wait...are you telling me that people don't want a cell phone that looks like it was made by Fisher-Price?

 

[braddick]

I see so many of the 5C's around here- especially at Starbucks. The white and blue ones being the most commonly spotted.

I am a bit surprised at this turn of events.

 

[smakdown61]

I wonder if apple had some kind of data that pointed to more purchases of new but not top end phones over 1 year old top end phones. Might have even looked at samsung sales.

 

[tbrand7]

The title of this article should be "Tim Cook's first major product flop since becoming CEO."

 

[spazzcat]

Why buy a 5C when you can pick and equally good or even better (in some cases ) Nexus 5 for significantly cheaper.

That isn't what people are doing, they are buying a 5S which costs more. I really don't see how this is a bad thing for Apple.

 

[iSayuSay]

Do you have any sales figures to compare 5C sales to 4S sales last year? I believe the last story MR ran claimed the 5C was selling better than the 4S had. If that's the case is it really a failure? We don't really have any hard data to prove the 5C is a failure. It's entirely possible that the 5S is more popular than Apple's internal forecasts and thus they're ramping up production to fulfill the demand.

And why it's always become a sensitive topic for you?
Everytime some negative news about 5C you always come and try so hard to save the day? What's the deal here exactly?

Even your signature says it all?

Point is Apple has surplus 5C stocks in stores they have to cease productions.
So the choice here is simple; Apple ordered too many, or the demand is too low.
Either way it doesn't look good.

 

[eltaurus]

5c should have a lower price. then it will sell

 

[Rogifan]

That's probably because Steve would have had the balls to release it at a competitive price point, without quivering in fear at the though of potentially cannibalising the 5s.

Really? Steve Jobs was known for releasing products at competitive price points? Like the original iPhone and the MacBook Air?

 

[xdhd350]

If you continue to sell the iPhone 5 at a lower price, say $99, a lot of people might see that as the real bargain and hold off on paying more for the new one that's only one generation apart.

I think this is where Apple made their marketing mistake. I've seen so many comments like yours. IN FACT they are selling the iPhone 5 in a slightly improved design, at the prior year model price as they did in past years.

That fact seems to be escaping the masses. Maybe the plastic back is what's turning everyone off, because they are essentially getting an iPhone 5. I think one of the previous posters nailed it by saying those who buy the 5c with its bright plastic case are screaming, "I bought the cheaper model", whereas in years past, that wasn't so distinguishable when you bought the prior year flagship model.

 

[Rogifan]

Yes, because Jobs never launched a product that failed...

To the Jobs faithful that's probably true.

 

[spazzcat]

The title of this article should be "Tim Cook's first major product flop since becoming CEO."

I'm sure they sold millions, hardly a flop...

 

[Tknull]

smiling at his own company failing in everyone's eyes???

well... evidence has shown that people are flocking to the higher end/more expensive phone in lieu of the 5C. So you would be more accurate to say "his own company's product failing" rather than his "company failing."

 

[Bibgibs]

Instead of reducing 5C production, how about use the facility to pump up 5S stocks?

That's exactly what the article said they are doing. Did you not read it?

 

[spazzcat]

I'm sure a few people are. But most who are looking for a smartphone at a mid-range price point will end up with an Android phone, which is why Apple's market share is shrinking.

They are increasing production of 5S.

 

[158273]

If Apple had released the 5S and 5 side by side, people wouldn't be able to tell the difference (besides the most obvious, Touch ID) and would flock over to the 5. By releasing the 5C, Apple ensures that there is a specific difference between the 5S and 5C and knows full well that most will flock over to the 5S. It's a brilliant plan, actually.

I'm not sure how the situation played out with the 4S and 4 side-by-side when they released, but possibly people chose the 4 because they felt they didn't need Siri? I assume that Apple wasn't satisfied with how that played out, so this year, they tried something different.

And it worked, because people are buying the 5S.

It's almost like all of you want the 5C to be this huge amazing bestseller. Don't you realize, there can only be one winner, there can only be one iPhone that's selling more than the rest; and I think we can all agree that if the 5S is that iPhone, then Apple has done good.

 

[DeeGee48]

Yes, because Jobs never launched a product that failed...

It HASN'T failed! It's been out for, what, a month and a half? We are NOW in the ramp-up to the holiday sales season. How they sell in the NEXT month and a half will tell the real story. Let's withhold judgment until we actually SEE what the masses will buy. Give it, and Apple, a chance, people!

 

[KPOM]

The 5c should have had a lower price point and the lack of sales is indicating that Apple misread the situation

Either that, or they should have just assumed that the 5c would sell about the same as "last year's iPhone" has always sold. I don't think it's in Apple's interests to sell the phone too cheaply, unless they drop the 4s. My guess is that a 4s at $450 generates a higher margin than a 5c at $450 or even $500.

 

[iSayuSay]

That's exactly what the article said they are doing. Did you not read it?

And I admit I almost missed it. Did you not read that either?

 

[Tknull]

Times are different. The 5c seems to be lacking in comparison to the 5s. The 3G and 3GS were the only phones in the lineup when they were introduced so buyer's had nothing released at the same time to compare them to.

I thought the 5c would sell better. I still have yet to see one in the wild.

yea... the 5C does not boil down to its just being plastic. Its got slower processor, inferior camera, etc. You are looking at two phones in the lineup with different specs but not real different pricing.

 

[SkippyThorson]

Instead of reducing 5C production, how about use the facility to pump up 5S stocks?

You need to work on reading the entire article.

The Zhengzhou factory, one of Foxconn's main facilities for Apple, saw a hiring drive in April ahead of the iPhone 5s and iPhone 5c launch in September, and by ceasing production of the iPhone 5c it will be able to focus its efforts entirely on the iPhone 5s.