So many are so wrong
I have been reading through the comments... and I have to say that so many of you are completely misguided.
Concerning price: I have seen a number of people mention price. But you have to look at the underlying dynamics that make up the price. A number of phones are literally being given away. There is a reason why Samsung and Apple are the only ones making recognisable profits in the Smartphone market. Just like in the PC market, too many companies have fallen victim to the price wars mentality.
Consider this: If Phone-A is sold at a 5% profit while Phone-B is sold at a 35% profit, is it safe to say that Phone-B is over priced and should be priced as Phone-A? I contend that its unsafe to expect that all companies should sell their products at razor margins. This is not necessarily good for the economy and not good for the company.
While I want a good deal for the amount of money I put down, I also want the company who I purchase into to be around for the long haul. A company who does not maintain a certain level of net profit will not survive.
Now in direct relations to this story, there are a number of considerations to take in.
If the iPhone 5S is selling better then expected, while the iPhone 5C is selling better then the leading competitor then how is that a failure?
But the most important point that can be brought up is that this article is based upon speculation and rumours that have been proven to be insanely inaccurate historically.