It’s reported that Apple Inc. (NASDAQ:AAPL) is cutting the production of iPhone 5C from 300,000 to 150,00 units a day. This report comes from C Technology, a popular tech website.

Apple iPhone 5C

Apple iPhone 5C price drops

According to Unwired View, the gray market price dropped. It was explained, “The official price of iPhone 5c in China is 4448 Yuan ($726). But there is a thriving grey market over there, with iPhones bought in the U.S, Europe and Hong-Kong, illegally smuggled into the country. With real people taking real risks with their real money, this market is very sensitive to the real demand for any gadget, and very quick to adjust prices accordingly.  Care to guess the current price of unofficial iPhone 5c in China? 3000 to 3300 Yuan ($489-539), according to checks done multiple by local tech sites, and a quick review of offers on China’s main online marketplace – Taobao. That’s a drop of 30% below the official price. And, according to some sources, you can now sometimes find iPhone 5c as cheaply as 2600 Yuan.”

Apple to correct production orders

Thanks to the high demand, the iPhone 5S is harder to find and so the gray market prices remain high. Why the iPhone 5C remains in plentiful supply is another matter. Some sources speculate it’s because customers aren’t buying the phone, and others speculate it’s because Apple Inc. (NASDAQ:AAPL) ramped up their supply of iPhone 5C models.  The reason Apple Inc. (NASDAQ:AAPL) didn’t over-produce the iPhone 5S is the shortage of fingerprint sensors. The tech giant has to adjust their production orders for the iPhone 5C for customer demand just like they did for the gold iPhone 5S. It sometimes takes time for a company to make adjustments that meet supply and demand. Perhaps Apple Inc. (NASDAQ:AAPL) didn’t forsee the demand for the gold iPhone and maybe they overestimated the demand for the cheaper phone. Successful companies aren’t immune to such mistakes. Hopefully, they will get the production on track.