Apple has officially announced that it is limiting the production of the iPhone 5C because of sales that haven’t been as stellar as expected. The have cut production in half, decreasing from 300,000 units a day to 150,000. Meanwhile, the iPhone 5S is outselling the 5C two to one.
Many expected the 5C to be a hit in the budget market, but consumers can see through essentially cheaper redesign of the iPhone 5. Some are also saying that it may not have been cheap enough to reach the bottom of the smart phone market.
This is important to look at from a marketing perspective because all products may not do as well as the company hoped that they would do. When margins aren’t as high as the company wants them to be, they need to find ways to adjust to see if they can bounce back.