The report also said that a top Apple analyst on Friday dramatically cut his projection for third-quarter sales of the 5c. KGI Securities analyst Ming-Chi Kuo revised his estimates for the device to 11.4 million units shipped—down 33 from his original figure.
He also slashed his fourth-quarter estimate to 10.4 million units, according to a report from Business Insider, which cited Kuo's note.
(Read more: Ditching Apple for Android? What you need to know)
Kuo said that retailers are slashing the price of the 5c to move the product. Among other retailers, Walmart and Best Buy have already discounted the smartphone's subsidized price to $50 or less.
(Read more: Windows-like 'blue screen of death' striking iPhone 5s?)
Apple has been widely criticized for its pricing of the iPhone 5c.
Analysts had widely expected it 5c to have a much lower unsubsidized price. The price of an iPhone 5c without a wireless contract currently starts at $549, only $100 less than the iPhone 5s, which features a fingerprint sensor.
In a note last week, Jefferies analyst Peter Misek also said that Apple likely will be forced to cut the 5c's price because of lackluster sales, which would hurt gross margins. He added that demand for the 5s will also subside more quickly than expected.
"We think it is likely that the 5c misses consensus FY14 expectations and 5s sales taper off faster than the Street expects, but we believe that better-than-expected margins and new products will cause the market to be forward looking," Misek said.
We'll get a better picture of iPhone sales when Apple reports earnings Oct. 28.
—By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.