Apple Cutting Fourth Quarter iPhone Component Orders?

[MacRumors]

Digitimes shares a report from Taiwan's Commercial Times claiming that Apple has cut orders for iPhone components during the fourth quarter by 10-15%. The report claims that sales of the device have slowed significantly since the pre-order and launch phase and that shortages of a few components have also been impacting overall production. iPad production may also be seeing some cutbacks.

According to a Chinese-language Commercial Times report, Apple is likely to adjust downward its shipments of iPhones and iPads from related suppliers by 10-15% in the fourth quarter.

Related iPhone 4S suppliers including cases and camera lens makers as well as ODM assemblers have received notice from Apple to reduce their shipments for the fourth quarter, but none of them has confirmed the report, the paper said.

Some international IC players have also indicated that their revenues are likely to slide by 10-15% in the fourth quarter due to the shipment adjustments for iPhone 4S.

Sales of the iPhone 4S hit four million units on its opening weekend last month, significantly higher than the iPhone 4's debut of 1.7 million units last year.

Apple has moved quickly to expand iPhone 4S availability internationally, and the company has continued to experience tight supplies of the device at its own retail stores. But if the reports out of Taiwan are to be believed, at least a portion of that crunch may be due to lighter-than-anticipated production in the face of component shortages and a targeted cutback by Apple.

Update: RBC Capital Markets analyst Mike Abramsky notes in a new research report that the suggestion of weaker-than-expected sales does not mesh with evidence of sell-through from carriers and other points-of-sale. He suggests that Apple may simply be pulling back slightly from an initial over-ordering of components, something the company has reportedly engaged in at times in order to gain the most favorable pricing possible.

Article Link: Apple Cutting Fourth Quarter iPhone Component Orders?

 

[DotCom2]

Every time I see a report that starts with "Digitimes" I know it means nothing!
These people have consistently gotten things way wrong and have no credability! It's like they almost start bad rumors on PURPOSE!
FUHGEDDABOUIT!

 

[jbrown]

Not big news - looks like they got over the initial surge and are now throttling back a tad

 

[Grimace]

Don't believe it for a second. The retail channel in the US is still very dry.

 

[Shanpdx]

it is makes sense, if apple can deliver to the stores (Apple, Att, Verizon, Sprint) with large iPhone 4S supplies during

Thanksgiving to Christmas holiday period.

otherwise iPhone 5 wait will continue.

 

[Buckeyestar]

This is a ludicrous claim considering people are still experiencing difficulty in obtaining a phone and many regions still haven't had their launch yet.

 

[Marieta]

Sounds great!

 

[dani0100]

One thing I've wondered about with regard to the 4s sales numbers is the fact that all of the people who bought their iPhone 4 units within the first few weeks of launch are still not eligible for a subsidized upgrade to the 4s. That's probably 3-8 million AT&T subscribers we're talking about.

I got my iPhone 4 on launch day and I'm not eligible for a subsidized upgrade to the 4s until November 25th. I'm wondering how many of my fellow first day/week purchase of the iPhone 4 are in the same boat and will be mobbing retail channels when we're finally able to upgrade.

 

[Gol27]

No you have it all wrong! This obviously means the release of the iphone 5 is imminent!!!11!!

/sarcasm

 

[haruhiko]

The financial market is very terrible right now.

 

[DirtySocks85]

I think that supply lines are only slightly constrained at the moment. It doesn't sound near as bad as the iPhone 4 launch. I have a friend that just ordered his 4S last week, the shipping notification said it would take 3 weeks. It's out for delivery today.

 

[xUKHCx]

I think that supply lines are only slightly constrained at the moment. It doesn't sound near as bad as the iPhone 4 launch. I have a friend that just ordered his 4S last week, the shipping notification said it would take 3 weeks. It's out for delivery today.

The stock here in the England is very dry. Every night at 9 the available stock to reserve disappears in under a minute. All the local 02 stores only have stock very briefly before it all disappears.

 

[mdriftmeyer]

I have a suggestion

Is it at all possible to flesh out article research before you write something unsubstantiated and then right on cue we get a ``Update:'' as if this is breaking news?

It's so predictable.

 

[mdatwood]

One thing I've wondered about with regard to the 4s sales numbers is the fact that all of the people who bought their iPhone 4 units within the first few weeks of launch are still not eligible for a subsidized upgrade to the 4s. That's probably 3-8 million AT&T subscribers we're talking about.

I got my iPhone 4 on launch day and I'm not eligible for a subsidized upgrade to the 4s until November 25th. I'm wondering how many of my fellow first day/week purchase of the iPhone 4 are in the same boat and will be mobbing retail channels when we're finally able to upgrade.

It's hard to know how many people this is effecting, since it's not a fact for everyone. I bought my iPhone 4 weeks after launch and I was eligible for upgrade pricing for the 4s on launch day. Same thing with my 3gs. Friends have reported similar deals. AT&T seems to have some formula that calculates when someone is eligible for upgrade pricing and it's not just based on date.

 

[imwoblin]

I purchased a 4 on launch day, the same for all iterations of iPhone and my upgrade date through AT&T was upgraded from Nov 25 to Nov 1. I have spent the last 9 days trying to secure a 4S through either the retail channel or Apple Store reservations. I finally nabbed a white 4S through the Apple reservation system and the store sold out within 15 minutes of 9pm. To make a long story short, I'm not buying this story of demand being down, at least here in the USA.

 

[jglavin]

One thing I've wondered about with regard to the 4s sales numbers is the fact that all of the people who bought their iPhone 4 units within the first few weeks of launch are still not eligible for a subsidized upgrade to the 4s. That's probably 3-8 million AT&T subscribers we're talking about.

I got my iPhone 4 on launch day and I'm not eligible for a subsidized upgrade to the 4s until November 25th. I'm wondering how many of my fellow first day/week purchase of the iPhone 4 are in the same boat and will be mobbing retail channels when we're finally able to upgrade.

Check your upgrade status again. I also got an iphone 4 at launch and mine said eligible on 11/25 until last week or so, when it suddenly told me I could upgrade.

 

[GiantSteve]

It's all about conquests

People tend to focus too much on upgrades from existing iPhone users, but this is misguided. Yes, current owners comprise a large and loyal market segment, but real growth in the iPhone platform will have to come from converting users from the Blackberry and Android platforms. Also, with the rapid adoption of smartphones it's critical that a significant portion chose iPhone for their first "smart" device for the base to continue to grow.

 

[Vegasman]

Every time I see a report that starts with "Digitimes" I know it means nothing!
These people have consistently gotten things way wrong and have no credability! It's like they almost start bad rumors on PURPOSE!
FUHGEDDABOUIT!

Add Gene Munster to the list.

Um...

Now you have two non-credible sources opposing each other in one article.

 

[lilo777]

Is it at all possible to flesh out article research before you write something unsubstantiated and then right on cue we get a ``Update:'' as if this is breaking news?

It's so predictable.

These two articles do not contradict each other. Digitimes always gets their data from Taiwan suppliers. Their data gives you more accurate picture than the anecdotal "sell through" stats. It gives you "absolute" volume data whereas "sell through" only indicates supply/demand ratio. If the phones sell through it only means that Apple is managing inventory very carefully.

 

[alent1234]

One thing I've wondered about with regard to the 4s sales numbers is the fact that all of the people who bought their iPhone 4 units within the first few weeks of launch are still not eligible for a subsidized upgrade to the 4s. That's probably 3-8 million AT&T subscribers we're talking about.

I got my iPhone 4 on launch day and I'm not eligible for a subsidized upgrade to the 4s until November 25th. I'm wondering how many of my fellow first day/week purchase of the iPhone 4 are in the same boat and will be mobbing retail channels when we're finally able to upgrade.

maybe there are people buying these that have never had a smartphone? android converts. someone i know upgraded his 2G iphone to the 4S

 

[Stephen123]

iPhones are still backordered 1 to 2 weeks in the online store. So they have not caught up with demand.

 

[Shanpdx]

outside of USA

one needs to complete two year contract before upgrade, no exception to that rule for expensive smartphones like iPhones.

so many are upgraded to iPhone 4 simply needs to wait till the contract over.

 

[AppleScruff1]

Apple is probably getting ready to start producing the iPad 3 and iPhone 5, hence the cutbacks.

 

[John Frum]

I got my iPhone 4 on launch day and I'm not eligible for a subsidized upgrade to the 4s until November 25th. I'm wondering how many of my fellow first day/week purchase of the iPhone 4 are in the same boat and will be mobbing retail channels when we're finally able to upgrade.

If you're interested in upgrading, you might want to head to your local AT&T or Apple Store. AT&T is allowing users to upgrade on the 1st of the month in which they are eligible.

 

[InYou101]

People want the 5..

I knew that once the hype of the 4S release was over sales would slowly drop.. People want the iphone 5 and are willing to wait two or three quarters for it; ) I for myself have no interest in the 4/4S, too thick and bulky.