Apple will reportedly cut back on orders of its iPhone 5C smartphone for the last three months of 2013.
The smartphone company has told assemblers from Taiwan that it's going to cut orders of the 5C for the fourth quarter of 2013.
"iPhone 5S is the new flagship and if 5S is increasing (its sales) and 5C is decreasing and the fact that 5S production has increased is positive for Apple's margins," Susquehanna analyst Chris Caso said, according to Reuters.
A cutback has people worried that there is a low demand for the 5C, which is available now for $100 less than the iPhone 5S.
The iPhone 5S and iPhone 5C were both released in late September, but the 5S is currently outselling the 5C by more than a 2-to-1 ratio in the U.S., according to an analysis by Consumer Intelligence Research Partners.
"This reflects a failure in Apple's pricing strategy," said Bevan Yeh, a Taipei-based senior fund manager at Prudential Financial Securities Investment Trust, according to Reuters. "The price differentiation between 5C and 5S is too small. It's an iPhone 5 with plastic casing and isn't worth the price."
The first three days the two new iPhones were available Apple sold approximately 9 million units. It has not revealed separate figures for the two devices however.
Prudential, which doesn't own Apple shares, predicts assemblers will ship close to 23 million 5C units in before the end of 2013, and 10 million in the first three months of next year.
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