There’s been a lot of speculation about and interpretation of the reported reduction in iPhone 5c production at Apple Inc. (NASDAQ:AAPL). The company has not quite confirmed that the model has been unsuccessful, but Verizon Communications Inc. (NAYSE:VZ) results indicated that the smart phone did poorly in the third quarter.
A new report, from NPD, says that although Apple Inc. (NASDAQ:AAPL) has reduced its iPhone 5c order, the iPhone 5s is still healthy. The report says that Apple has actually increased the production run of the model. If the NPD report rings true, it could mean that iPhone 5s sales are expected to come in very strong in the coming quarter.
Apple iPhone 5C cut
The NPD report estimates that Apple Inc. (NASDAQ:AAPL) cut its planned production of the iPhone 5c by around 35%. The report sourced “channel checks” as evidence for its numbers, but gave little information about the credibility of the numbers. The 35% reduction of iPhone 5c orders comes within the range reported by other media outlets.
It is the 75% increase in iPhone 5s production that will be the most interesting to analysts. The phone is probably worth more profit per unit than the iPhone 5c, though it is likely that the phone has lower margins than the iPhone 5c. The failure of the iPhone 5c is a black mark on Apple, but it is not as bad as things could be.
Some analysts have suggested that Apple Inc. (NASDAQ:AAPL) could lower the price of the iPhone 5c in the coming months. That would leave the company with a lower margin smart phone that could sell in acceptable levels and might be able to break into the Chinese market. Apple Inc. (NASDAQ:AAPL) would be embarrassed by a decision to lower prices, and Android fans would never forget the occurrence.
Apple iPhone 5S sales
The Verizon Communications Inc. (NYSE:VZ) earnings report released last week contained some key numbers for Apple Inc. (NASDAQ:AAPL) watchers. It looks like Apple may have sold more phones than previously expected in the third quarter. That indicates a good quarter ahead for the Cupertino firm, and hints at a record breaking quarter through the end of the year.
Apple Inc. (NASDAQ:AAPL) may be making more of the iPhone 5s if it is still planning that big quarter it promised after opening weekend for the device. The firm’s shareholders could use a break.