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Old Jan 16, 2013, 09:08 AM   #1
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iPhone 5 Cutbacks Simply Due to Initial Shipment Rate Being Too Large to Maintain?




While questions remain about claims from earlier this week that Apple has slashed iPhone 5 component orders, CNET is now reporting on market research firm DisplaySearch senior vice president Paul Semenza's comments on how the iPhone 5's initial shipment ramp was simply too large to maintain.
Quote:
"It was a very quick ramp up. The Q4 [estimate] was about 61 million [for the iPhone 5]...that may be dialed back a bit, but anything near that number is still huge," he said, referring to an estimate of display shipments for the iPhone 5.

"That would support the theory that the ramp was too much to sustain."
CNET mentions that the first quarter of sales for the iPhone 4S registered far below that for the iPhone 5, providing little reason for such a strong decline in iPhone 5 interest. Yesterday, Semenza told The New York Times that Apple had cut its display order from 19 million to 11-to-14 million for January, noting that demand from Apple had been "corrected significantly." But he also mentioned to CNET that he'd heard of changes to orders before the new year.

Theories abound as to the just how much Apple has cut component orders and the reasons for those cuts, but many believe that improving yields and aggressive ramping during the holiday quarter may simply have left Apple with an oversupply of parts heading into the new year. Combining that excess inventory with a natural slowdown following the strong launch quarter for the device could lead to substantial reductions in part production. Still, it seems unlikely that Apple would have miscalculated component demand for the current quarter by the nearly 50% number originally cited by Nikkei and The Wall Street Journal.

Recently, it's been reported that Apple is prepping iPhone 5S production for March ahead of a release in June or July, a rapid update cycle that could also be forcing adjustments in Apple's component orders.

Article Link: iPhone 5 Cutbacks Simply Due to Initial Shipment Rate Being Too Large to Maintain?
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Old Jan 16, 2013, 09:10 AM   #2
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I don't think so. Sounds off with supply chain guru Cook in the driver seat.
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Old Jan 16, 2013, 09:13 AM   #3
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I don't think so. Sounds off with supply chain guru Cook in the driver seat.
Maybe he didn't factor-in the higher price when calculating demand estimates
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Old Jan 16, 2013, 09:15 AM   #4
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Here's a good piece to consider:

Via Forbes: Why The WSJ Got The 'iPhone Demand Is Crashing' Story All Wrong
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Old Jan 16, 2013, 09:18 AM   #5
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Nice spin lol
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Old Jan 16, 2013, 09:28 AM   #6
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The iphone 5 is still selling BIG by any metric, just not quite as big as a couple analysts predicted. Pile in on cheap apple stock I say!
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Old Jan 16, 2013, 09:30 AM   #7
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iPhone sales were, without doubt, still extremely high during the holiday season, but I actually hope that sales are lower than expected.

Why? It sends Apple a message that bigger upgrades are needed. A few years ago, I remember Apple as the company that had the best software combined with great hardware.

The iPhone 5 isn't a bad phone. In fact, it's a really good phone. When you asked me in 2010 which phone was the best smartphone? iPhone 4. It had hardware similar or better than that of top competitors and it had just received a huge software upgrade (iOS 4, which brought stuff like multitasking).

Last year, I'd probably still say the iPhone 4S. While Android (and Windows Phone) was gaining terrain, the iPhone 4S still had the best over-all package.

This year, I'd say you can't go wrong with any high-end smartphone: Nokia Lumia 920, HTC One X, Samsung Galaxy S III, iPhone 5. Why? Because of the software: Android has made huge jumps compared to iOS - and Microsoft has brought a refreshing mobile OS to the market.

And look what is coming this year!
Android is getting more refined and more refined, basically, by the day. iOS 7 needs to be big. It needs to change, even if it is only for change's sake. People like new, fresh, shiny things. Apple has been playing it safe with iOS 5 and iOS 6.

And look what is coming on the hardware side: quad-core Cortex A15 CPUs and even more powerful GPUs. Bigger batteries which will probably give us much better battery life. Drastically improved cameras (Nokia PureView, anyone?).

Again: Apple has been playing it safe. They change things, but not too much. iOS 6 is really, really similar to iOS 5. And iOS 5 is quite similar to iOS 4. And being careful with changing things is okay, but once in a while you need to take a risk: you need to throw things overboard and start with a fresh design. Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.

Same on the hardware side: Apple is playing it safe. They gave the iPhone 5 a bigger display: big enough to attract users who want a bigger display, but small enough to make sure they won't lose any customers who preferred the 3.5" display.

Apple in 2008/2009/2010 would have taken more risks. More drastic changes to iOS. Back in 2010, they gave us multitasking while - as it is reported - they weren't willing to give it to us at first. It would make things too complicated. Looking back, giving us multitasking was a great idea because there are now so many great new apps which make great use of it (like Spotify).

Back in 2008, Apple gave us the App Store. According to the news articles I read, Apple - at the time - wasn't really willing to do this (they were 'all-in' on web apps) but if we look back this was a great choice. They took the risk and it paid off.

In 2010 they gave us a 960 x 640 3.5" display. 326 pixels per inch. Such a high pixel density: unheard of.

Apple needs to take risks. Give iOS a redesign so it looks drastically different, but - hopefully - still works quite the same. Add drasticly better internals: push camera technology. Push battery technology. Push CPU and GPU technology. And more importantly: try out new technologies (like Senseg's tactile feedback technology).

Come on, Apple. Take some risks. Up the game.

Last edited by ThatsMeRight; Jan 16, 2013 at 09:49 AM.
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Old Jan 16, 2013, 09:35 AM   #8
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Before Samsung became a contender, Apple could leisurely release iPhones on a yearly cycle. Now for every one iPhone model, competitors release two. If the annual cycle continues, Apple will be (and arguably has been) left behind.

Ramp down the spaghetti iPhone. Bolster the features before September. Last year Apple demonstrated this propensity with the iPad.
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Old Jan 16, 2013, 09:44 AM   #9
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Quote:
Originally Posted by ThatsMeRight View Post
<snipity snip>
Spot on.

Apple invented a fantastic device, and kept improving it up to the iPhone 4. However since then its stagnated, with very little in the way of improvements.

Over the last 2 years their competitors (namely Samsung) have upped their game, and now have a product that many now consider to be better, or at very least on par.

Apple needs to go back to the drawing board and re-re-invent the iPhone again. There are a slew of features that could be improved/added to the iPhone. Wasting time on things like maps is just reducing the amount of great developers that could be working on more useful apps and features.

I'd hope that the next iPhone looses the trademark dull 'slab of glass, bit of aluminium and a button' image as its getting to be very tired. That and an overhaul of iOS. They cant treat it like Mac OS X and just redesign it once every 12-14 years.

Putting this aside. Even the biggest fanboy has to admit this simple little fact:

Samsung is the best thing that could have happened to the iPhone and Apple. It's forcing them to develop the iPhone instead of doing a slow release cycle (ala iPod). Without Samsung pushing like hell, the iPhone would not be what it is today.

Obviously they cant take all the credit, Google has been doing a bloody fantastic job with Android, and the other big players such as HTC have been releasing some pretty popular products.

Last edited by rmwebs; Jan 16, 2013 at 09:49 AM.
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Old Jan 16, 2013, 09:51 AM   #10
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No one bothered looking at the numbers here. The numbers in the initial report didn't add up at all. Forget reading into it though, just repost it on Macrumors.

No one also bothered to realize that the report was talking about the screens used which are also used in iPod Touchs and could be related to a cut back of those rather than iPhones.
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Old Jan 16, 2013, 09:55 AM   #11
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Originally Posted by Bathplug View Post
Nice spin lol
This one or the one in the WSJ report?

I find it hard to judge whether the WSJ report was worded so that it'd work well as simple clickbait, and what's spun or not. There are so many different interests at play here. I'll just watch this unfold without forming an opinion one way or the other for now. We'll know more in just about a week anyway, with the earnings release.
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Old Jan 16, 2013, 09:58 AM   #12
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I dont understand the constant moaning about the iphone 5, i like my iphone 5 & yes it is different to the 4s as it is much faster & i like the screen being longer not wider as i don't want a huge phone.

Stop worrying about the iphone keeping up with the competition & enjoy it for what it is, if you don't like Apple products then buy a different make !

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Old Jan 16, 2013, 10:08 AM   #13
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Originally Posted by ThatsMeRight View Post
Push CPU and GPU technology. And more importantly: try out new technologies (like Senseg's tactile feedback technology).

Come on, Apple. Take some risks. Up the game.
Apple could hardly push CPU and GPU technology any harder, they bought their own chip design companies in house, made a hand laid out exceptional SoC in the A6, and they clearly haven't been messing around when it comes to the GPUs they've been using.
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Old Jan 16, 2013, 10:08 AM   #14
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If Apple get millions of sales of iPhones, it's because of blind followers. But if an android device sells well, it's because "openness wins".

If an iPhone has an unconfirmed, unproven report that it's extremely gigantic order is reduced to just a gigantic order, Apple are sinking (Hust like they always have been in the past, but magically just became the biggest company)
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Old Jan 16, 2013, 10:14 AM   #15
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CNET is a joke. A very bad joke.
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Old Jan 16, 2013, 10:50 AM   #16
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Forget the past. Apple is going in a whole new direction in the post-jobs era. More risks will be taken. Some will work, others won't. But be prepared to be surprised more then ever before.
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Old Jan 16, 2013, 11:02 AM   #17
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Originally Posted by ThatsMeRight View Post
... you need to throw things overboard and start with a fresh design. Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.
Ask MS how taking that "risk" is working out for them! Throwing things overboard and starting with a fresh design is what you do when you're desperate, sitting on a failing product line and/or strategy, and generally behind the eight ball, present-day RIM is another example.

Apple sees tremendous growth every quarter, with each new iPhone iteration has sold more units that the previous gens combined. I don't think they'll be adopting your proposed strategy anytime soon.

Quote:
Originally Posted by ThatsMeRight View Post
... they weren't willing to give it to us at first. It would make things too complicated. Looking back, giving us multitasking was a great idea because there are now so many great new apps which make great use of it (like Spotify).
Again, your specious reasoning is showing!

You say they weren't willing to "give it to us", and even suggest that it turned out to be a "good idea" in the end, as if those mean old jerks at Apple got it wrong.

I say that until iOS4 and the A4 chip, Apple couldn't achieve the desired level of user experience, and only added this functionality in iOS 4 when it was ready for Primetime, as they say.

Honestly, which explanation is more plausible?
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Old Jan 16, 2013, 11:06 AM   #18
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Who cares. The doom and gloom news already dragged my AAPL. Media loves to pick favorites. Where was the reporting that FB search graph is crap and should have been included in FB years ago? No, instead we have to hear about every anecdotal potential hiccup at apple as 100% true facts.
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Old Jan 16, 2013, 11:21 AM   #19
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Unfortunately, after the whole Dish Hopper fiasco, CNet has some credibility issues.
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Old Jan 16, 2013, 12:07 PM   #20
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I wonder if this has anything to do with the ipod touch as they share the same panels with the iphone 5.

When comparing the ipod touch to an ipad mini, the ipad mini is $30 more and would seem to be the far better deal if I had to choose between the two.

----------

Quote:
Originally Posted by ThatsMeRight View Post
iPhone sales were, without doubt, still extremely high during the holiday season, but I actually hope that sales are lower than expected.

Why? It sends Apple a message that bigger upgrades are needed. A few years ago, I remember Apple as the company that had the best software combined with great hardware..
I can't help but feel that Apple got the message by allowing $127 Walmart deals and low cost carriers selling their flagship phone. The pool of users on premium US networks is exhausted and there's stiffer competition now more than ever.

There's no doubt in my mind Apple had an "incredible" Q4.

However Apple's earnings call will be particularly interesting as to their outlook for Q1 and beyond.
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Old Jan 16, 2013, 12:23 PM   #21
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Quote:
Originally Posted by ThatsMeRight View Post
iPhone sales were, without doubt, still extremely high during the holiday season, but I actually hope that sales are lower than expected.

Why? It sends Apple a message that bigger upgrades are needed. A few years ago, I remember Apple as the company that had the best software combined with great hardware.

The iPhone 5 isn't a bad phone. In fact, it's a really good phone. When you asked me in 2010 which phone was the best smartphone? iPhone 4. It had hardware similar or better than that of top competitors and it had just received a huge software upgrade (iOS 4, which brought stuff like multitasking).

Last year, I'd probably still say the iPhone 4S. While Android (and Windows Phone) was gaining terrain, the iPhone 4S still had the best over-all package.

This year, I'd say you can't go wrong with any high-end smartphone: Nokia Lumia 920, HTC One X, Samsung Galaxy S III, iPhone 5. Why? Because of the software: Android has made huge jumps compared to iOS - and Microsoft has brought a refreshing mobile OS to the market.

And look what is coming this year!
Android is getting more refined and more refined, basically, by the day. iOS 7 needs to be big. It needs to change, even if it is only for change's sake. People like new, fresh, shiny things. Apple has been playing it safe with iOS 5 and iOS 6.

And look what is coming on the hardware side: quad-core Cortex A15 CPUs and even more powerful GPUs. Bigger batteries which will probably give us much better battery life. Drastically improved cameras (Nokia PureView, anyone?).

Again: Apple has been playing it safe. They change things, but not too much. iOS 6 is really, really similar to iOS 5. And iOS 5 is quite similar to iOS 4. And being careful with changing things is okay, but once in a while you need to take a risk: you need to throw things overboard and start with a fresh design. Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.

Same on the hardware side: Apple is playing it safe. They gave the iPhone 5 a bigger display: big enough to attract users who want a bigger display, but small enough to make sure they won't lose any customers who preferred the 3.5" display.

Apple in 2008/2009/2010 would have taken more risks. More drastic changes to iOS. Back in 2010, they gave us multitasking while - as it is reported - they weren't willing to give it to us at first. It would make things too complicated. Looking back, giving us multitasking was a great idea because there are now so many great new apps which make great use of it (like Spotify).

Back in 2008, Apple gave us the App Store. According to the news articles I read, Apple - at the time - wasn't really willing to do this (they were 'all-in' on web apps) but if we look back this was a great choice. They took the risk and it paid off.

In 2010 they gave us a 960 x 640 3.5" display. 326 pixels per inch. Such a high pixel density: unheard of.

Apple needs to take risks. Give iOS a redesign so it looks drastically different, but - hopefully - still works quite the same. Add drasticly better internals: push camera technology. Push battery technology. Push CPU and GPU technology. And more importantly: try out new technologies (like Senseg's tactile feedback technology).

Come on, Apple. Take some risks. Up the game.
Some very interesting comments here but I must disagree with your comments on Windows 8 which so far seems to be pretty disastrous for MS, the great thing about it is that it is relatively easy to use the Windows 7 parts which work fairly well rather than the new fangled interface which seems to be designed for touch screen pc's which either don't exist or if they did would be an ergonomic nightmare. It's not for nothing that Steve Bulmer is known as the worst CEO in North America
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Old Jan 16, 2013, 12:33 PM   #22
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The original thread on MacRumors that has over 1,000 posts was click bait.
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Old Jan 16, 2013, 12:37 PM   #23
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Quote:
Originally Posted by ThatsMeRight View Post
iPhone sales were, without doubt, still extremely high during the holiday season, but I actually hope that sales are lower than expected.

Why? It sends Apple a message that bigger upgrades are needed. A few years ago, I remember Apple as the company that had the best software combined with great hardware.

The iPhone 5 isn't a bad phone. In fact, it's a really good phone. When you asked me in 2010 which phone was the best smartphone? iPhone 4. It had hardware similar or better than that of top competitors and it had just received a huge software upgrade (iOS 4, which brought stuff like multitasking).

Last year, I'd probably still say the iPhone 4S. While Android (and Windows Phone) was gaining terrain, the iPhone 4S still had the best over-all package.

This year, I'd say you can't go wrong with any high-end smartphone: Nokia Lumia 920, HTC One X, Samsung Galaxy S III, iPhone 5. Why? Because of the software: Android has made huge jumps compared to iOS - and Microsoft has brought a refreshing mobile OS to the market.

And look what is coming this year!
Android is getting more refined and more refined, basically, by the day. iOS 7 needs to be big. It needs to change, even if it is only for change's sake. People like new, fresh, shiny things. Apple has been playing it safe with iOS 5 and iOS 6.

And look what is coming on the hardware side: quad-core Cortex A15 CPUs and even more powerful GPUs. Bigger batteries which will probably give us much better battery life. Drastically improved cameras (Nokia PureView, anyone?).

Again: Apple has been playing it safe. They change things, but not too much. iOS 6 is really, really similar to iOS 5. And iOS 5 is quite similar to iOS 4. And being careful with changing things is okay, but once in a while you need to take a risk: you need to throw things overboard and start with a fresh design. Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.

Same on the hardware side: Apple is playing it safe. They gave the iPhone 5 a bigger display: big enough to attract users who want a bigger display, but small enough to make sure they won't lose any customers who preferred the 3.5" display.

Apple in 2008/2009/2010 would have taken more risks. More drastic changes to iOS. Back in 2010, they gave us multitasking while - as it is reported - they weren't willing to give it to us at first. It would make things too complicated. Looking back, giving us multitasking was a great idea because there are now so many great new apps which make great use of it (like Spotify).

Back in 2008, Apple gave us the App Store. According to the news articles I read, Apple - at the time - wasn't really willing to do this (they were 'all-in' on web apps) but if we look back this was a great choice. They took the risk and it paid off.

In 2010 they gave us a 960 x 640 3.5" display. 326 pixels per inch. Such a high pixel density: unheard of.

Apple needs to take risks. Give iOS a redesign so it looks drastically different, but - hopefully - still works quite the same. Add drasticly better internals: push camera technology. Push battery technology. Push CPU and GPU technology. And more importantly: try out new technologies (like Senseg's tactile feedback technology).

Come on, Apple. Take some risks. Up the game.
i kinda agree, every company seems to get "lazy" once they get very popular but it'll bite them in the ass at some point. just ask rim, nokia or even the stuck-in-the90s-music business

every company has its life cycle
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Old Jan 16, 2013, 12:43 PM   #24
nep61
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Quote:
Originally Posted by ThatsMeRight View Post
iPhone sales were, without doubt, still extremely high during the holiday season, but I actually hope that sales are lower than expected.

Why? It sends Apple a message that bigger upgrades are needed. A few years ago, I remember Apple as the company that had the best software combined with great hardware.

The iPhone 5 isn't a bad phone. In fact, it's a really good phone. When you asked me in 2010 which phone was the best smartphone? iPhone 4. It had hardware similar or better than that of top competitors and it had just received a huge software upgrade (iOS 4, which brought stuff like multitasking).

Last year, I'd probably still say the iPhone 4S. While Android (and Windows Phone) was gaining terrain, the iPhone 4S still had the best over-all package.

This year, I'd say you can't go wrong with any high-end smartphone: Nokia Lumia 920, HTC One X, Samsung Galaxy S III, iPhone 5. Why? Because of the software: Android has made huge jumps compared to iOS - and Microsoft has brought a refreshing mobile OS to the market.

And look what is coming this year!
Android is getting more refined and more refined, basically, by the day. iOS 7 needs to be big. It needs to change, even if it is only for change's sake. People like new, fresh, shiny things. Apple has been playing it safe with iOS 5 and iOS 6.

And look what is coming on the hardware side: quad-core Cortex A15 CPUs and even more powerful GPUs. Bigger batteries which will probably give us much better battery life. Drastically improved cameras (Nokia PureView, anyone?).

Again: Apple has been playing it safe. They change things, but not too much. iOS 6 is really, really similar to iOS 5. And iOS 5 is quite similar to iOS 4. And being careful with changing things is okay, but once in a while you need to take a risk: you need to throw things overboard and start with a fresh design. Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.

Same on the hardware side: Apple is playing it safe. They gave the iPhone 5 a bigger display: big enough to attract users who want a bigger display, but small enough to make sure they won't lose any customers who preferred the 3.5" display.

Apple in 2008/2009/2010 would have taken more risks. More drastic changes to iOS. Back in 2010, they gave us multitasking while - as it is reported - they weren't willing to give it to us at first. It would make things too complicated. Looking back, giving us multitasking was a great idea because there are now so many great new apps which make great use of it (like Spotify).

Back in 2008, Apple gave us the App Store. According to the news articles I read, Apple - at the time - wasn't really willing to do this (they were 'all-in' on web apps) but if we look back this was a great choice. They took the risk and it paid off.

In 2010 they gave us a 960 x 640 3.5" display. 326 pixels per inch. Such a high pixel density: unheard of.

Apple needs to take risks. Give iOS a redesign so it looks drastically different, but - hopefully - still works quite the same. Add drasticly better internals: push camera technology. Push battery technology. Push CPU and GPU technology. And more importantly: try out new technologies (like Senseg's tactile feedback technology).

Come on, Apple. Take some risks. Up the game.
While I agree with nearly everything you mention-----Start with drastically new features. You need to take a risk like Microsoft did with Windows 8.--- as far as I'm concerned, Windows 8 has been a bit of a flop... unless I've been looking in the wrong places for their sales numbers and / or positive reviews....

And didn't both Verizon and AT&T say that iPhone 5 sales were off the charts when first released
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Old Jan 16, 2013, 01:04 PM   #25
nep61
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Originally Posted by OldSchoolMacGuy View Post
No one bothered looking at the numbers here. The numbers in the initial report didn't add up at all. Forget reading into it though, just repost it on Macrumors.

No one also bothered to realize that the report was talking about the screens used which are also used in iPod Touchs and could be related to a cut back of those rather than iPhones.
You're right....

http://www.forbes.com/sites/markrogo...n-to-the-core/

Last edited by nep61; Jan 16, 2013 at 06:00 PM.
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