Taiwanese partner reportedly told to slash yield rates by 50%

Nov 20, 2013 14:28 GMT  ·  By

Pegatron, the Taiwanese electronics assembler which originally scored 70% of Apple's iPhone 5c orders for 2014, has been ordered to cut production of the colorful handset by as much as 50%.

Industry sources cited by DigiTimes say that iPhone 5c sales have fallen short of Apple’s original expectations, and now the Cupertino giant is adjusting its operations to fulfill still-strong demand for the iPhone 5s.

Apple is said to have “decreased its orders to Pegatron Technology by over 50% and has asked the Taiwan maker to return some production equipment,” these industry sources said. Pegatron reportedly confirmed the move.

The news comes amid rumors that Foxconn, Apple’s other assembly partner, has also been ordered to stop making plastic iPhones and shift resources towards producing the more expensive iPhone 5s. Foxconn, however, was unwilling to confirm the rumors.