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October 2013
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Apple Inc. (NASDAQ:AAPL) Component Manufactures Brace Up For A Potential Cut In iPhone 5C Production


By Creame Consulting Group ( screens the markets looking for Hot Emerging stocks including but not limited  to Micro-cap and Small cap stocks that are on the verge of breakout. 

In news, that has potential to create havoc in the ultra competitive smart phone market and its dependent cell phone component manufacturing space, speculation is rife that Apple Inc. (NASDAQ:AAPL) has decided to cut production of its 5C iPhone by 50%. This model was released by Apple with much fanfare along with iPhone 5S about a month back. 5C was intended to be positioned at a lower price band in price sensitive emerging markets.

As per a report being sourced to Chinese site “C Technology”, Apple’s per day production of 5C model has dropped to 150,000 units. This is exactly half of 300,000 units / day production Apple had budgeted for at the launch of this new model. C Technology implies that at this reduced production rate, iPhone 5C output would hover around the 13.7 million mark for the quarter.

In related news “Unwired View” the devices and application journal has filed a article which claims that recently launched iPhone 5C with 16 GB of storage capacity is being sold on the Chinese grey market between “$489-$539″ per unit. If this report gets substantiated, it will mean that Apple’s official price of $726 per unit in China becomes untenable.

If the report about 5C production turns out to be true, then it will add more fuel to the raging debate amongst the analyst community. Since the simultaneous launch of the two models 5C and 5S, there has been intense debate about the feasibility of the dual pricing approach that Apple has embarked on for these two products.

Couple of weeks back, Wall Street Journal had reported that Apple is contemplating increase in iPhone 5S production to match growing demand. A host of smaller component manufactures who are heavily dependent on Apple orders would be keeping their fingers crossed and hoping that any slack in 5C production can be covered by increased 5S production.