iPhone 5c May Be A Flop

When Apple unveiled not one but two new iPhones last month, it was the dawning of a new strategy for the company, which for six years had championed its single iconic smartphone even as competitors rolled out an array of shapes, sizes and features. But a month later, there are questions about how effective this strategy has been, particularly in regards to the iPhone 5C, the cheaper, colorful plastic counterpart to Apple's higher-end iPhone 5S. Though some observers see a long game in which the "fun" version of the iPhone will still prove popular, others are skeptical, based on some early signs. Apple has not released figures breaking down sales of the 5C versus the 5S (An earnings report on October 28 may change that). But independent analysts estimate that the fancier 5S is outselling its candy-colored cousin by 3 to 1 or, in some cases, even more. Localytics, a tool from Forrester Research that it says samples apps on 1 billion devices, says the 5S is winning 3-to-1 in the United States and a whopping 5-to-1 (72% to 28%) worldwide. Reports from generally reliable sources in China say Apple has cut production of the phone there, less than a month after it went on sale. C Tech, a Chinese site that ran accurate photos of the iPhone 5C and 5S before they were released, quotes insiders who say daily production of the 5C has been cut in half -- from 300,000 to 150,000. Part of the problem, some analysts say, is the price. Although the iPhone 5C starts at $99 with a mobile data plan, many had predicted that it would need to be even cheaper to appeal to buyers in emerging markets like China and India. In China, where phones aren't subsidized by mobile carriers, the 5C is selling for 3,500 yuan, or about $560. And though its style is all new, the 5C doesn't sport features significantly upgraded from the iPhone 5, which can be had for as low as $199. The two-year-old iPhone 4S can be had for free with a data plan.