Apple iPhone 5c inventories build to over 3 million units

According to a published report on Thursday that cites Taiwan based supply chain manufacturers, Apple has built up inventories of more than 3 million units of the Apple iPhone 5c. The plastic cased version of the iPhone replaced the Apple iPhone 5 in Apple's line-up to become the mid-range option for fans of the device. According to the report, 2 million units are collecting dust at contract manufacturer Pegatron, with the remainder on the shelves in various retail locations belonging to carriers and distributors.

The sources pointed out that even though Apple sold a record 51 million iPhones in the previous quarter, the iPhone 5c was never a huge seller when compared to the full-featured Apple iPhone 5s. Some of the reasons for the weakness in sales include the higher than normal pricing for a phone in its class, and the small 4 inch screen on the model. The device is priced at $99 for 16GB and $199 for 32GB with a two-year contract. Off-contract, the 16GB and 32GB models are priced at $549 and $649 respectively.

Apple has not ordered iPhone 5c units since the end of last year, but the inventory is still staring Apple in the face and needs to be drawn down sharply. While the sources say that Apple has learned a huge lesson about screen-size, there is speculation that the Apple iPhone 6 will offer a display measuring 4.5 or 4.7 inches, with a 5.5 inch phablet also rumored. The iPhone 5c, according to these rumors, will be phased out.

With such an inventory build up, those looking to buy the Apple iPhone 5c might want to wait to see if Apple sharply cuts the price of the phone.

source: DigiTimes