iPhone 5c Far From a Disaster as 5s Orders Increase

By Craig Galbraith Comments
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**Editor's Note: Click here  for our list of September's hottest selling smartphones to see how the iPhone fared against the competition, or here for our top 10 list of best smartphones in 2013 (so far).**

Industry analysts are wondering if Apple made a mistake by offering two new smartphones at once last month following news that production for the iPhone 5c is already being cut in half.

The Wall Street Journal went as far to say that the less-expensive 5c isn't selling as well as Apple had hoped, calling the multi-device strategy into question; yet, execs from one of the company's parts suppliers said orders for the new flagship 5s are increasing.

“I don’t read too much into this report," noted Yankee Group VP of research Carl Howe. "Back in January, Apple CEO Tim Cook warned reporters not to read too much into their supply chain checks because they can’t see the whole thing, and I think this set of articles is a perfect illustration of that problem."

Howe says Apple continues to focus on its high-end iPhone that gives it an excellent profit margin, but has also adopted a strategy that gives customers an option of a "good/better/best" family of products.

"The glass-based iPhone 4S is the good entry-level iPhone, the iPhone 5c offers a better, more colorful iPhone with 4G LTE service, and the iPhone 5s offers the best iPhone experience," Howe added. "While a lot of the analysis has been that iPhone 5S has sold quite well initially, I expect to see 5c sales strengthen over time as the early adopters become satisfied and more mainstream purchasers come into the market."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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