Pegatron, Apple’s key iPhone 5C supplier, has seen its quarterly profits slip, with sluggish sales of the mid-tier mobile being blamed.
The company had been expected to post profits of around £54 million for the last quarter. Instead, it managed £52.5 million. That’s despite the iPhone 5c helping the company to record quarterly revenue.
Sources told Reuters that a cut in iPhone 5C production may be to blame. Stories emerged last month that Apple was slashing orders for its cheaper, plastic iPhone, with demand for the high-end iPhone 5S outstripping its lower-end stablemate by as much as two-to-one.
Apple is believed to be planning to spread iPhone 5C production to other plants in China in the New Year. Analysts and investors believe that sales could jump in 2014, as the device’s non-hardcore target market starts looking to upgrade its phones.
Apple revealed record iPhone sales for its last reported quarter, with 33.8 million sold. That number is expected to jump in the three months to Christmas, with official figures due from Cupertino at the start of January.
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