Reports are making rounds that the recently-launched budget-friendly iPhone 5c is in troubled waters.
According to a DigiTimes report, which cites "industry sources," one of Foxconn Electronics' units will stop the manufacturing of the iPhone 5c in a bid to increase the production of sibling iPhone 5s. Per the report, the factory in question is the Zhengzou unit.
"Foxconn Electronics (Hon Hai Precision Industry) will stop production of the iPhone 5c at its factory in Zhengzhou, northern China, and shift the capacity to iPhone 5s, according to industry sources," reports DigiTimes.
Additionally, the publication reveals that Foxconn has been asked to produce only 30 percent of iPhone 5c units. Another supplier, Pegatron, however, is continuing to manufacture the remaining 70 percent of iPhone 5c orders. However, reportedly, Apple has also asked Pegatron to cut orders by 20 percent in October because of disappointing sales.
"Foxconn and Pegatron Technology have obtained OEM orders for 30% and 70%, respectively, of iPhone 5c production, the sources said. One month ago, Apple lowered iPhone 5c orders to Pegatron by 20% and those to Foxconn by nearly one-third for the fourth quarter due to unsatisfactory sales, the sources indicated," DigiTimes said.
Previous reports have suggested that Pegatron was ordered to cut down production of the iPhone 5c from 320,000 to 80,000.
However, Apple will not halt iPhone 5c production completely, but will only reduce the iPhone 5c production output.
The budget option iPhone 5c has not met with as much success post launch as its sibling iPhone 5s. iPhone 5c is only $100 cheaper than iPhone 5s but comes with a plastic body, a slower processor and no Touch ID fingerprint sensor.
Apple shares were trading at $519.66 on the Nasdaq on Wednesday morning.
