AppleInsider Staff
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. Â
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.Â
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.Â
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.Â
William Gallagher
Christine McKee
Chip Loder
Malcolm Owen
97 Comments
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.
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.
[quote name="matrix07" url="/t/155446/wsj-apple-cuts-iphone-5-component-orders-in-half-due-to-weak-demand#post_2258338"] 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.[/quote] 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.