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Old Jan 13, 2013, 10:06 PM   #1
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Apple Slashes iPhone 5 Part Orders Due to Weak Demand




The Wall Street Journal reports that Apple has slashed component orders for the iPhone 5 this quarter, responding to weaker-than-expected demand.
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Apple's orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.

The Cupertino, Calif., company has also cut orders for components other than screens, according to one of the people.

Apple notified the suppliers of the order cut last month, the people said.
There have been reports that Apple is looking to launch its next-generation iPhone in the middle of this year as part of a broader effort to shorten its product update cycles. Apple is reportedly also toying with other changes such as a cheaper version of the iPhone in order to help the company slow the momentum of Android and its leading manufacturers Samsung.

It is not unusual for demand, and thus Apple's component orders, to wane in the lead-up to hardware updates, but the iPhone 5 is just four months old, and the slashing of production at this stage of the device's lifecycle is sure to cause concern for the company, its investors, and others closely watching Apple's performance.

Article Link: Apple Slashes iPhone 5 Part Orders Due to Weak Demand
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Old Jan 13, 2013, 10:08 PM   #2
viperGTS
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This worries me a little...
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Old Jan 13, 2013, 10:16 PM   #3
Woodcrest64
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Why are you worried?
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Old Jan 13, 2013, 10:59 PM   #4
KPOM
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Originally Posted by viperGTS View Post
This worries me a little...
More than a little. iPhone is half of Apple's profits. Even if this story is false or incorrect expect Apple to get hammered tomorrow.

Hopefully this is just Apple changing suppliers or bringing out the 5S sooner than expected. I can't stand Samsung and don't want them or the perpetual spies (aka Google) controlling the mobile future.
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Old Jan 13, 2013, 11:04 PM   #5
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Originally Posted by KPOM View Post
More than a little. iPhone is half of Apple's profits. Even if this story is false or incorrect expect Apple to get hammered tomorrow.

Hopefully this is just Apple changing suppliers or bringing out the 5S sooner than expected. I can't stand Samsung and don't want them or the perpetual spies (aka Google) controlling the mobile future.
You are out of luck then because those two companies offer the best in mobile. Apple is out of its league and can't stay on the same field with Samsung and Google. They were a bully and picked a fight they can't win.
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Old Jan 13, 2013, 11:06 PM   #6
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.

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Originally Posted by cardinalryan View Post
You are out of luck then because those two companies offer the best in mobile. Apple is out of its league and can't stay on the same field with Samsung and Google. They were a bully and picked a fight they can't win.
Samsung stole Apple's IP, but Apple is the bully here? Apple picked a fight?

Last edited by maflynn; Jan 14, 2013 at 05:50 AM. Reason: Removed insult
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Old Jan 13, 2013, 11:43 PM   #7
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Originally Posted by faded.memories View Post
I've thought about buying a 5, but ONLY because I moved and Sprint has no data service here. (Considering picking up a Verizon unit, they have LTE coverage.)

The 'upgrade' killed Maps and YouTube, and there isn't a jailbreak out so the new phone is in many ways a couple steps back.

I predict that if a jailbreak ala Absinthe pops up, so will the iPhone 5 sales...
I think you are seriously overestimating how many people jailbreak.
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Old Jan 14, 2013, 01:29 AM   #8
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When the iPhone 4 came out the 3g was REALLY showing it's age. We are at the point where the 5 is out and while not fast by any stretch the 3gs is still mostly capable with the current OS. The market is flooded with phones from all manufacturers and iOS market is flooded itself with capable phones. Yearly upgrade cycles, 2 year contracts, 100% markups and lack of innovation in the OS has stagnated the iphone market the past couple of years. The software has to sell the hardware and when 3 generation old hardware isn't dropped to it's knees by current software, something is wrong. And I'm not talking about what Apple loves to do with artificially limiting features to sale hardware but push the envelope a little bit.
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Old Jan 13, 2013, 11:18 PM   #9
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Originally Posted by cardinalryan View Post
You are out of luck then because those two companies offer the best in mobile. Apple is out of its league and can't stay on the same field with Samsung and Google. They were a bully and picked a fight they can't win.
Samsung should stick to making washing machines and being a parts supplier. If not for Apple they would have nothing to copy. Google is evil. I refuse to give them any more of my personal data than I need to. I may even switch to Bing.
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Old Jan 13, 2013, 11:22 PM   #10
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Samsung should stick to making washing machines and being a parts supplier. If not for Apple they would have nothing to copy. Google is evil. I refuse to give them any more of my personal data than I need to. I may even switch to Bing.
Samsungs been making phones for decades longer than apple. In fact they have been making smartphones for much longer too.
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Old Jan 13, 2013, 11:06 PM   #11
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Originally Posted by viperGTS View Post
This worries me a little...
I see this as very good news. No one leads forever. Sooner or later the demand begins to fade, the users get bored & are eager for something new.

Why good news? Because Apple isn't the perfect company many people believe, a good kick in the ass will do wonders if Apple pays attention to it.

Mercedes & BMW cars got pretty stale until Lexus & Acura came into the picture. Suddenly those two woke up and re-engineered their entire lineups.

My hope is that Apple takes notice, avoids denial & returns to what they do best. Focus on two key areas instead of just one. While some new products have been created in the last 18 months, it seems their main focus was solely on profits. If they place equal focus on world class products & profits, I'm certain they can achieve both.
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Old Jan 13, 2013, 11:09 PM   #12
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We'll see a week from Wednesday, I guess. I'm a little suspicious, though the WSJ usually doesn't report shoddy news. The 5 was actually a massive upgrade, considering that LTE is a big deal. But if Samsung struck a nerve with the "bigger is better" theme then perhaps Apple will be forced to dumb its devices down to public demand. I hope not.
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Old Jan 14, 2013, 10:53 AM   #13
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Originally Posted by KPOM View Post
We'll see a week from Wednesday, I guess. I'm a little suspicious, though the WSJ usually doesn't report shoddy news. The 5 was actually a massive upgrade, considering that LTE is a big deal. But if Samsung struck a nerve with the "bigger is better" theme then perhaps Apple will be forced to dumb its devices down to public demand. I hope not.
How is giving consumers what they want equal to "dumb its devices down"? Have you looked at some of the innovative features in Android smart phones? Have you held a Galaxy S3? I have, and I'll tell you - and I'm a big Apple fan and stockholder - Samsung is on to something with that large screen. The reason Apple simply made the iPhone 5 taller, but not wider, is because it required a minimum of re-engineering and otherwise software changes to accommodate the taller form factor.

Apple needs to hop on the large screen bandwagon and then take it to a new place, or it will become irrelevant in an industry that it helped spark. Hmmm... deja vu?
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Old Jan 14, 2013, 11:11 AM   #14
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Originally Posted by AZREOSpecialist View Post
How is giving consumers what they want equal to "dumb its devices down"? Have you looked at some of the innovative features in Android smart phones? Have you held a Galaxy S3? I have, and I'll tell you - and I'm a big Apple fan and stockholder - Samsung is on to something with that large screen. The reason Apple simply made the iPhone 5 taller, but not wider, is because it required a minimum of re-engineering and otherwise software changes to accommodate the taller form factor.
I have, and I think it's too big. What's next? Should Apple put a speaker on the iPad Mini and sell that as a superphone?

I think we may look back at the huge phones of today the same way we look at fins on cars.
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Old Jan 14, 2013, 11:18 AM   #15
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Why not. iPad mini could double as a phone. Actually it already has stereo speakers

It's all about options. Mature market means more options. It is as obvious as it can get that a large portion of the market desires larger phones - period. Does apple want to sell to that market. Probably yes. Especially now when and if they see the demand dwindle.

Hopefully - Apple should - see this and work on counter-measure.

That said - I think iPhone is the best phone. Especially considering the software design, UX and consistency of quality of apps. But many people don't see this or care about it.

Quote:
Originally Posted by KPOM View Post
I have, and I think it's too big. What's next? Should Apple put a speaker on the iPad Mini and sell that as a superphone?
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Old Jan 14, 2013, 12:52 AM   #16
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Originally Posted by viperGTS View Post
This worries me a little...
This worries me a lot. On the other hand, I'm no psychic and will need to stew on it and wait for the quarterly conference. I can't sell before everyone else does tomorrow so I'll have to take the big lumps... again.
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Old Jan 14, 2013, 01:01 AM   #17
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Originally Posted by viperGTS View Post
This worries me a little...
It was a boring phone ... like the sixth iteration of the same thing.

Apple needs to revamp iOS and add in the missing features like NFC and possibly even a MicroSD card slot (good luck).

As an anecdotal note, almost everyone I know is jumping ship to Android. It's actually starting to get rare to see an iPhone...
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Old Jan 14, 2013, 01:33 AM   #18
paleriderc2d
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Originally Posted by viperGTS View Post
This worries me a little...
Apple wants you to be happy!
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Old Jan 14, 2013, 04:27 PM   #19
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Originally Posted by viperGTS View Post
This worries me a little...
Why?
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Old Jan 14, 2013, 10:07 PM   #20
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Originally Posted by viperGTS View Post
This worries me a little...
You should be worried. When I look at the S3's screen real estate it makes me envious. Which would you rather watch a movie on? I want an iPhone but with a large screen. Figure it out Apple.
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Old Jan 13, 2013, 10:08 PM   #21
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Perhaps they will go back to the July as the release month?
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Old Jan 13, 2013, 10:09 PM   #22
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I need to dump the stock. I don't see it rebounding to $700/share.
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Old Jan 13, 2013, 10:11 PM   #23
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Can thank a stale design and os for this.
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Old Jan 13, 2013, 10:13 PM   #24
Henry.A.Raven
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This worries me a little. especially after only just launching in China. does anyone know how many more territories it has yet to launch in, if any?
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Old Jan 13, 2013, 11:11 PM   #25
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Can thank a stale design and os for this.
which is why I think apple should demo iOS 7 in March like they were doing back then up to iOS 4.
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