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Apple is cutting orders for the new iPhone 5c

Updated: 2013-10-17T04:06:07Z

Bloomberg News

Apple Inc. reportedly is cutting fourth-quarter orders for its new iPhone 5c from assemblers in Taiwan.

Pegatron Corp., a Taiwan company that assembles the product, was told orders would be reduced by less than 20 percent, and Hon Hai Precision Industry Co. was informed orders would be cut by a third, according to The Wall Street Journal. The newspaper cited unidentified people familiar with the matter.

One component supplier was notified of a 50 percent cut in orders for parts, the newspaper reported.

Apple began selling the iPhone 5c last month on the same day its more expensive iPhone 5s went on sale. The cheaper handset is a reconfigured version of last year’s device with a plastic casing that comes in five colors.

Kuo Mingchi, an analyst at KGI Securities Co. in Taipei, on Oct. 11 cut his estimate for fourth-quarter shipments of the 5c by 33 percent, citing weak orders. Chinese technology news website CTech on Oct. 10 reported that production had been halved, citing people close to the manufacturers.

An Apple spokesman could not be reached for comment.

Simon Hsing, a spokesman for Hon Hai, and Charles Lin, chief financial officer at Pegatron, both declined to comment on customer orders.

The iPhone 5c began U.S. sales Sept. 20 with a suggested price of $99 for a 16-gigabyte model with a service contract.

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