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iPhone 5 demand reportedly lower than expected as Apple cuts component orders


iphone 5

Apple has cuts orders for iPhone 5 parts by half due to lower than expected demand, according to a new report.

The claims come via The Wall Street Journal, which cites "people familiar with the matter" as its source. According to the report, Apple's orders for the 4-inch screens that go into the iPhone 5 have halved for the January to March period.

It's not just iPhone 5 display orders that have been cut either. Apparently orders for other components are being reappraised by Apple. The company notified the relevant manufacturers last month.

This will come as some concern to Apple, if true, as the iPhone 5 is far from an old device nearing the end of its year-long premium cycle. It only hit shops at the end of September, less than four months ago.

Of course, this could simply mean that Apple is planning to launch a new iPhone sooner than expected, or that it intends to switch manufacturers. The WSJ goes with the gloomier assessment, though.

"The move indicates that sales of the new iPhone haven't been as strong as previously anticipated and demand may be waning," claims the report. It points to the ongoing success of Samsung - now the world's largest smartphone producer - and the proliferation of cheaper Android devices as major contributing factors.

Whilst Apple had 23 per cent of the smartphone market in the first quarter of 2012, it had dropped to 14.6 per cent by the end of the third quarter. Samsung's share, by contrast, grew to 31.3 per cent in the third quarter.

It's no longer just a case of Samsung flooding the market with lots of moderately successful affordable smartphones, either. Last month we reported on the news that the Samsung Galaxy S3 had become the UK's biggest-selling smartphone for the seventh month running, thus beating the newer iPhone 5.

Has Apple had its day? Is Samsung the new smartphone taste-maker? Let us know what you think through the Trusted Reviews Twitter and Facebook feeds, or take to the comments box below to have your say.

Via: WSJ


January 14, 2013, 11:29 am

I've been waiting for the bubble to burst. Since I bought a couple of ipods I feel Apple's products are over rated and over priced. Good, but not the work of a genius as the fan boys would have us believe. What Apple have done really well is marketed, they sold the idea of an mp3 player, a smartphone and a tablet to the consumer. They also set a high standard and I have benefited from all of this with products in direct competition (Dell Adamo ultraportable laptop, Windows 7, Android etc.) I mean, would the Sony Xperia Z have been so smart and stylish if it weren't for the iphone?
Thanks, Apple, but no thanks.


January 14, 2013, 4:21 pm

The problem is the market is now full of powerful Android phones that in most cases are cheaper than an iPhone 5. The iPhone is still the best made device but is now looking a little too expensive by comparison to its rivals. Given most smart phone owners change their devices frequently it is hard to justify the extra expense of the iPhone.

Eventually either Apple will have to lower their prices or up the specifications to beat the competition!

Bruno Silva

January 14, 2013, 6:12 pm

Totally agree!

Isaac Sarayiah

January 14, 2013, 9:04 pm

Steve Jobs was icon of our times and because of his gravitas and vision, Apple became an icon too.

Since his sad death, Apple has made several mistakes and even though they made mistakes when Steve was at the helm, due to his iconic - almost Godlike status among many - the masses were willing to overlook those issues. Now, however, Apple is showing its flaws and without a visionary at its helm it is rapidly becoming like any other Tech company and it is adding to its woes by making evolutionary rather than revolutionary upgrades to its product lines, which many/ most have come to expect.

I wrote an article on Steve Jobs at my Relationship and Lifestyle blog www.theSarayiahpost.com . The direct link is http://www.thesarayiahpost....

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