Last month's announcement of Apple's two-fold iPhone strategy through its top-of tier 5s and budget priced 5c was a bold attempt by the Cupertino-based giant to expand market reach. And, if reports have anything to say about it, going the inexpensive route was an unnecessary move as the iPhone 5s has outsold the 5c two-to-one in the United States.
All Things D has released a report by Consumer Intelligence Research Partners (CIRP) which found that the 5s accounted for 64 percent of total iPhone sales. Apple's 5c only accounted for 27 percent and the two-year-old 4s trailed at 9 percent.
CIRP's report noted that top Apple analyst had dramatically cut the projected third-quarter sales of the 5c. KGI Securities analyst Ming-Chi Kuo told CNBC Monday that retailers including Walmart and Best have already began slashing the subsidized price of the smartphone to $50 or less. Most carriers are even offering the 4s for free with contract.
Part of the lower sales could be attributed to phone's pricing. Though only $100 more expensive than the 5c (both subsidized and unsubsidized), iPhone 5s boasts a more powerful 64-bit A7 processor, a better camera, a fingerprint scanner and sleek color options, from a feature standpoint.
Not to say that the 5c is selling poorly. Mac Rumors reported that September saw the phone finish within the top three in sales on all four major carriers, though Apple is cutting production from 300,000 to 150,000 units per day. Co-founder of CIRP, Josh Lowitz, estimated that over time, the cheaper smartphone may find its way to the top spot of Apple's line-up.
"Over time, the lower-priced phones have tended to gain share versus the flagship phone, after the initial rush of dedicated upgraders to the newest device," explained Lowitz. "So we expect the 5c will account for a higher percent of total U.S. iPhone sales in the coming months, but the design changes may alter the dynamic. The iPhone 5c may appeal to a different buyer than the legacy 4S did last year, or the new 5s will this year."
Though total unit sales of both iPhone 5s and iPhone 5c were 9 million, a better picture at Apple's report earnings will be revealed on October 28.
