Due to below-expectations sales performance, recent market rumors have indicated that iPhone 5c shipments drastically deceased at the end of 2013 and inventory volumes have built up to more than three million units, consisting of about two million units at ODM Pegatron Technology and over one million units in total with telecom carriers and distributors, according to Taiwan-based supply chain makers. Apple did not confirm the reports.

　　Apple previously announced its quarterly smartphone sales had reached a new high at 51 million units, but the mix of iPhone 5s and 5c did not provide much of a benefit to sales as demand for the iPhone 5c has always been weak compared to its predecessors or higher-end counterpart, the sources said.

　　The sources pointed out that the iPhone 5c's main problems are its higher-than-expected price point and 4-inch display, which is rather small by the latest standards. Apple already stopped placing orders for the iPhone 5c at the end of 2013, but inventories are still a big issue for the US-based vendor and its partners.

　　Due to their contracts with Apple and high purchasing prices, most telecom carriers and retailers are unlikely to offer significant price cuts in the short term for the iPhone 5c. Currently, iPhone 5c is priced at US$99 (16GB) and US$199 (32GB) with 3G service bundle plans, and US$549 (16GB) and US$649 (32GB) for the smartphone itself, the sources noted.

　　In the future, the sources believe Apple's miscalculation should help it adjust its smartphone strategy to release products with bigger screen sizes to satisfy user demand.