Apple's phones are cannibals

It appears that Apple’s cunning plan to save its floundering bottom line by releasing two phones in the market at the same time has failed.

Earlier Apple released a cheap and cheerful iPhone 5C and more expensive iPhone 5S. The idea was that the 5C would encourage people lead to harder drugs, such as the more expensive phones, and people would be forever hooked into Apple’s Walled Garden of Delights.

At the time, we did not think the 5C would sell well and when it did, it was bought by a 5S user looking for something cheaper.

Now according to a Chinese website Ctechcn, Apple has slashed production on its 5C.

This is partly because of sluggish sales, but mostly because those sales which are made are cannibalising the more expensive 5S.

Ctechcn reported that Apple has limited production of the 5C from 300,000 per day to 150,000 per day. This would fall in line with reports that the iPhone 5S was outselling the iPhone 5C by more than two to one.

It is looking like the iPhone 5 had a slightly more successful launch than the iPhone 5S with 68 percent of new sales compared to 64 percent accounted by the 5S.

CIRP cofounder Josh Lowitz warned AllThingsD that the lower-priced phones have tended to gain share versus the flagship phone, after the initial rush of dedicated upgraders to the newest device. He thinks that the 5C will account for a higher percent of total US iPhone sales in the coming months.

It is fairly clear that Apple does not want that and will attempt to limit the 5Cs distribution to cash strapped regions which will not buy a 5S because it was too pricey.