Reports say that Apple might be reducing the production of it’s iPhone 5C by 50% – from 300,000 units to 150,000 units. The source which leaked of the iPhone 5S and 5C before their announcements, claims that the reason behind this is the fall in the Grey market pricing for the phone.
The Grey market pricing for the iPhone 5C is falling because there is a consistent supply of the phone. While the official pricing for the 5C in China is 4448 Yuan (Approx 726 US$), the phone is available in the Grey market for around 3000-3300 Yuan (Around 489 to 539 US).
Most of these phones are illegally imported from USA, Europe and Hong Kong. That means there is a price difference of around 30% compared to official pricing, which is causing many people to opt for the Grey market even though it is risky.
The iPhone 5S on the other hand is more difficult to find. Some say that the reason behind the easy supply of iPhone 5C is because Apple anticipated more demand and as a result issued more devices for production. But regardless of the reason, Apple is expected to cut the 5C production by 50%.