Apple's attempt at a cheaper smartphone isn't making money, according to Bloomberg.

The company is slowly finding out its customers prefer to pay more for a superior product, and that it may have priced the cheaper phones a tad too high.

The iPhone 5c launched last month for $99, $100 cheaper than the recently-launched iPhone 5s.The 5s is superior in reality, with a "better camera, faster processor chip and fingerprint-reading security features", and superior in the eyes of the consumer. Sixty four percent of iPhone customers favored the 5s and just 27 percent preferred the 5c, Bloomberg reported. The 5s is outselling the 5c by 100 percent.

Bloomberg polled the opinions of two loyal iPhone customers who fall into the 64 percent. Gene Munster, an analyst at Piper Jaffray Cos., said the 5c was not much different than the previous model, the 5.

"The iPhone 5c is a new phone technically, but it's really an old phone," he said. "The iPhone 5s is selling significantly better."

Jonathan Rosen, who works in marketing, didn't believe the price difference was great enough to tempt buyers away from the 5s or towards the 5c.

"Most people will err towards the one with the better feature set," Rosen said. "The price difference just isn't substantial enough to want a 5c."

With the 5c, Apple tried to break into markets like China, where cheaper products tend to sell better, according to Bloomberg. Yet, the phone can cost up to $550 without a contract, according to Bloomberg. Even with a contract, $99 may just not be cheap enough, especially if a better version awaits for just $100 more.

"In China, I've heard the joke that the C stands for cheap," Blair said. "Investors have had concerns since the pricing was announced."

The shadow of 5s may have also hurt Apple's cause. Typically, buyers will go for the newest product (5s) and eschew the inexpensive version that comes out at the same time (5c). That could be the dynamic forming between the iphone 5c and the iphone 5s, Bloomberg reported.

This could be a lesson for Apple to stick with its formula, according to Laurence Balter, an analyst at Oracle Investment Research in Fox Island, Washington.

"Apple customers are still interested in premium products from a premium brand," Balter, said. "If If anything, the 5c is a failed experiment in trying to please the masses. Apple should stay focused on the premium and let Samsung take the lower end of the market."

The production and distribution of iphone 5c's has decreased significantly, according to Bloomberg.