Low iPhone 5 demand causes Apple to reduce part orders
Apple's iPhone 5 sales have taken a dip due to rumours of a successor model, prompting a reduction in component orders
Apple has reportedly reduced its component orders with suppliers owing to weak iPhone 5 sales.
The Wall Street Journal cites ‘people familiar with the situation’ as a source for its report where it says Apple’s orders for display panels has ‘dropped to roughly half of what the company had previously planned to order’.
Allegedly these cuts have also occurred with other components too and suppliers were notified in December.
‘The move indicates that sales of the new iPhone haven’t been as strong as previously anticipated and demand may be waning,’ said the WSJ report.
This isn’t entirely surprising when you consider that, no sooner was the iPhone 5 out of the gate the iPhone 5S/iPhone 6 rumours were already circulating and there’s been strong suggestions that Apple is shifting its annual schedule to include multiple handsets per year with a quicker turnaround.
This, combined with the fact that iPhone 4S sales took a dive ahead of the iPhone 5 launch and you can see why this has occurred – when people know another iPhone is coming they hold fire and wait it out.
There’s a lot of talk at present that Apple is on a downward turn in terms of popularity and product innovation. Shares have fluctuated as a result, the iOS 6 Apple Maps debacle didn’t help and nor has Google and Samsung’s continued rise to prominence with Android and Galaxy devices taking a huge chunk of market share and sales.
The latest news of poor iPhone 5 sales could be a big problem for the company if investor confidence takes a knock.
Apple is expected to announce its Q4 earnings at some point in January.