Whose expectations are you talking about? I'm pretty sure Apple is happy that more people are choosing to spend more money on the 5S.
I am not really sure about that. The first thing you see when you go to apple.com is the 5C. The only thing you see on TV is the 5C. Apple has spent much more time trying to sell the 5C.
Of course Apple is happy that people love the 5S, but I believe that they expected more from the 5C. Of course till Apple provides official numbers we can only assume...