Apple cuts orders for iPhone 5 parts due to low demand, reports say

By on Jan 15, 2013 in Business, Smartphone, Technology Comments

Apple cuts orders for iPhone 5 parts from its supplier and the apparent reason is due to low demand, as reported at Wall Street Journal (WSJ), citing people who are familiar with the situation. Could this mean a sign that Apple will release a cheaper iPhone in the middle of this year?

Apple iPhone 5

Apple iPhone 5
Image Credit: Apple.com

Well, as noted in the WSJ report on Monday, January 14, 2013, the same people cited the reduction of Apple‘s order for the screen for iPhone 5 from January to March this year as an example, where the orders were cut to around 50 percent of the quantity they used to order.

According to the report, Apple has already informed their suppliers since last month about the cut orders, and that there are other iPhone 5 components other than screen that the company has reduced their orders. This therefore indicates that iPhone 5 sales have not been as huge as Apple has earlier projected.

Earlier this month, WSJ reported that Apple is now planning to release a less expensive iPhone later this year, citing people who were briefed with the matter, but not revealing whether it will be called iPhone 5S or iPhone 6. DigiTimes had almost the same report, noting that device will be released in China and other emerging markets.

Apparently, a major possible reason for the reduction of demand for iPhone 5 could be that Samsung has already overpowered Apple as being the world’s largest smartphone seller by market share. Other cheaper Android-powered models are also being noted to add pressure to the US-based smartphone company.

In a recent report by the International Data Corporation (IDC), Apple had only 14.6% of the global smartphone shipments in Q3 of 2012, which is lower than the 23% in Q4 2011 and in Q1 2012. On the other hand, Samsung’s sales reportedly increased to 31.3% in Q3 2012 and the figure is being projected to rise.

Related Post: 5 new Apple products expected for release in 2013 revealed, iOS 7, iPad Mini Retina and iPhone 5S included



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