Never miss an update Follow AppleInsider
Monday, January 14, 2013, 12:55 am
WSJ: Apple cuts iPhone 5 component orders in half due to weak demand
Apple reportedly sent word to suppliers in December that it would be reducing parts orders for the recently released iPhone 5 on "weaker-than-expected" demand, with some orders being cut in half from original expectations.
Sources familiar with the matter told The Wall Street Journal that Apple cut "roughly half" of its orders for the iPhone 5's 4-inch screen and initiated a drawdown on other components orders for the January to March quarter.
It is unclear what exactly is to blame for the reduction but ongoing rumors point to the possible introduction of a cheaper model to the iPhone line sometime in 2013.
The WSJ report is joined by a corresponding article from the Nikkei (via Brightwire), which claims the revised Apple orders have prompted Japanese LCD makers to look for business elsewhere. Apple is sourcing the 4-inch Retina displays used in the iPhone 5 from Japanese manufacturers Japan Display and Sharp, as well as South Korea's LG Display.
Supply of the iPhone 5 finally caught up to demand in mid-December when a number of international Online Apple Stores listed the smartphone as being in stock for the first time since its launch at the end of September.
On Topic: General
- Song skipping feature in Apple's 'iRadio' reportedly holding up Sony deal
- Music service's structure, plus Apple's culture, holding up 'iRadio' service
- Apple fixes MacBook Air crashing issue in critical firmware update
- Apple TV to get CW content in new streaming deal
- Apple CEO talks taxes ahead of hearing: 'We pay every dollar that we owe'
Previous Comments View All
Look at the number here
http://www.reuters.com/article/2013/01/14/us-apple-iphone-demand-idUSBRE90D04B20130114
Apple was expected to order 65 million screens?
Considering the best iPhone quarter is only 37 mil., and that's Christmas quarter. WTH Apple to order this much in a quarter AFTER Christmas?
Makes no sense.
Apple was expected to order 65 million screens?
Considering the best iPhone quarter is only 37 mil., and that's Christmas quarter. WTH Apple to order this much in a quarter AFTER Christmas?
Makes no sense.
Unless Apple was modeling significantly higher demand than their usually, already-conservative forecasts anticipated. Such as expecting to move 65 million units this quarter, but achieving "only" 50 million. Still blows out previous quarter sales, but also below their expectations.
Not saying that's what happened, just explaining how its possible that even with sales coming in below internal expectations it could still be a blowout quarter.
??
http://www.businessinsider.com/the-real-reason-apple-cut-its-iphone-5-orders-2013-1
This sounds like bollocks.
Is that cuts in half of what was already ordered, or cuts half of what was estimated they would order? My guess is that there will be a clarifying report in a day or two and it will turn out that this is a non story. The Jan 23 report will be quite interesting.
Market saturation?
So, the iPhone 5 have been in stock for few weeks after months unavailability due to high demand. Now all the sudden the demand is weak and Apple is doomed. Do these people read what they write?!! You know.. it is impossible to be due to supplier change, quality control issue, or many other reasons that make more sense.
Sure the demand now is not as high as it used to be few weeks ago but we all know Apple is the king of supply management and they are conservative with their orders.
Apple is Doomed(TM)
??
http://www.businessinsider.com/the-real-reason-apple-cut-its-iphone-5-orders-2013-1
But surely if there was a new model coming up (due to a new aggressive update schedule) they would have known that, and simply not ordered as many iPhone 5 parts in the first place, rather than order a year's worth and then cancel half the order.
There have been several stories about Apple cutting orders for this iPhone or that iPad the last 2 years.
And yet Apple still followed these reports with record quarters.
Nothing to see here.
Latest Apple Headlines
-
10M Samsung flagship phones in 28 days a 'record,' 5M iPhone 5 in 3 days 'disappointing'
~6 hours ago -
Song skipping feature in Apple's 'iRadio' reportedly holding up Sony deal
~10 hours ago -
Apple yanks 'Bang with Friends' app from iOS App Store
~11 hours ago -
Revenue from iOS, Android gaming apps now three times greater than portable consoles
~12 hours ago -
Gameloft's Gangstar Rio, N.O.V.A. 3 go free on iOS for a limited time
~14 hours ago - more...
| Model | White | Black | |
|---|---|---|---|
| iPad mini (WiFi only) | |||
| 16GB WiFi |  |
$329.99 | $329.99 |
| 32GB WiFi | |
$429.99 | $429.99 |
| 64GB WiFi | |
$529.99 | $529.99 |
| iPad mini (WiFi + 4G) | |||
 |
 |
 |
|
| 16GB 4G White | $459.99 | $459.99 | $459.99 |
| 32GB 4G White | $559.99 | $559.99 | $559.99 |
| 64GB 4G White | $659.99 | $659.99 | $659.99 |
| 16GB 4G Black | $459.99 | $459.99 | $459.99 |
| 32GB 4G Black | $559.99 | $559.99 | $559.99 |
| 64GB 4G Black | $659.99 | $659.99 | $659.99 |
Lowest Prices Anywhere!
| Model | Price | You Save |
|---|---|---|
| Core i5 MacBook Pros w/ Retina | ||
| 13" 2.5GHz/8GB/128GB | $1,406.48 | $292.52 |
| 13" 2.5GHz/8GB/256GB | $1,479.99 | $519.01 |
| 13" 2.5GHz/8GB/512GB | $1,699.99 | $799.01 |
| Core i7 MacBook Pros w/ Retina | ||
| 13" 2.9GHz/8GB/256GB | $1,599.99 | $599.01 |
| 13" 2.9GHz/8GB/512GB | $1,799.99 | $899.01 |
| 15" 2.3GHz/8GB/256GB | $1,899.99 | $299.01 |
| 15" 2.6GHz/8GB/512GB | $2,299.99 | $568.01 |
| 15" 2.7GHz/16GB/768GB | $2,699.99 | $499.01 |
So is it "weaker-than-expected" demand or a potential mid-cycle refresh or the addition of a cheaper handset?
AI, you can't say one thing in the title then a completely different scenario in the article. It's confusing.
But whatever, the stock will be sure to drop tomorrow.