Apple Reduces Orders for iPhone 5 Components Due to Weaker Than Expected Demand

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News Posted: Mon, Jan 14 2013 9:20 AM
Where once millions of buyers only had eyes for Apple's sexy iPhone devices, sassy smartphones from Samsung and other Android players have gotten pretty good at wooing previously loyal iOS fans. As a result, demand is down for the iPhone 5, as evidenced by Apple reportedly cutting orders for various components due to weak demand.

An article sitting behind a paywall on claims that Japan Display Inc. and Sharp have both started cutting output of displays for the iPhone 5 "amid slower-than-anticipated sales" of Apple's flagship smartphone. We're not talking about a nominal amount of orders, either. Apple cut its LCD panel purchase order in half, down from an initial estimation of 65 million screens, Reuters reports. Orders for other parts that comprise the iPhone 5, including memory chips, have also been slashed.

Apple iPhone 5

If the report is true, one could argue that Apple's iPhone has finally lost its luster amid competing Android devices, and in particular Samsung's Galaxy line. To put some numbers behind that assertion, consider that Samsung's Galaxy S line just passed the 100 million device sales mark. The Galaxy S III alone has notched more than 40 million sales and is averaging 190,000 million shipments each day.

The iPhone line is still hugely popular, but clearly smartphone buyers are seeing other viable options. Apple knows this, and there was talk of the Cupertino company building a less expensive iPhone model to compete with Android in the entry-level space, but Apple quickly dispelled the rumor.
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Jaybk26 replied on Mon, Jan 14 2013 1:11 PM

190,000 million shipments each day?:D

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RiCoFrost replied on Mon, Jan 14 2013 6:21 PM

"Apple is done, say teens

Future adults allegedly believe, according to research, that Apple isn't cool any more. They're more impressed by Samsung's Galaxy and Microsoft's Surface."

Too many better options out there right now.

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sevags replied on Mon, Jan 14 2013 9:11 PM

I am not going to start an apple vs android discussion by defending apple in any way.... but couldn't another reason for the decrease in current component orders be because there is a new device coming out possible this summer? Everyone online has already read every site saying that the new iphone 5S/6 this year (whether june september) will have a higher resolution screen than the current ip5? That alone could be one reason why they are reducing their orders for the current screen. Also isn't the same screen used on the ipod touch? which hasn't sold as well as expected from what I read.

I won't argue that maybe their future forecast for sales of the ip5 were indeed reduced but we already all assumed that would happen any way if a new phone was going to be released this soon. By no means would either reason dub the ip5 a failure any how, its sales have been great overall it's just the same bug that bit the PS3 in the ass Sony said the system was so advanced it would be good for 10+ years without a new console and that its lifespan would be longer than that of the PS2 but quickly after releasing the ip5 Apple realized they needed a quicker refresh.

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