Apple Reduces Orders for iPhone 5 Components Due to Weaker Than Expected Demand
An article sitting behind a paywall on Nikkei.com 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.
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.