Apple Slashes iPhone 5 Part Orders Due to Weak Demand

[Blakjack]

I could care less about the stock value because I don't own any apple stock. But this kind of news doesn't worry me at all. It only makes me happy. This type of news only assures me that Apple doesn't have a choice but to push the envelope next go around. No need to expect another dull S series phone. They are backed into a corner with these more exciting big screened android phones, so now they have to come correct. I think Apple is plenty capable of coming correct. They just have never had to. Now.........it's time to play ball. Steve's gone, Ive's up to bat and I think he'll be swinging for the fence.

 

[echo44]

Market manipulation!

Exactly as so well said above it is no coincidence
that this article is released Sunday night so it becomes relevant
upon the opening of trading Monday morning!
The traders want the weak stomach sheep to sell the shares to lower
the stock, this will create the largest gain possible when Apple beats
their earnings. The smart money will buy today if Apple should drop
on completely unsubstantiated rumor. It works! look how many responses there
are in this forum thinking Apple got it wrong. Yet the opening day release numbers blew away any iphone previous release numbers. Don't be naive Tim Cook nows the computer/phone business better than you or I.

 

[m3110y3110]

+1

only the tiniest segment of the buying public seeks a burst of "excitement" every single year from their phone. I'm one of them... So are many tech forum-goers of course.

But what most people want is the best phone possible, not the maximum amount of change for change's own sake. Change for change's sake is marketing--and that's not what i want driving the design of my phone.

The iphone 5 would be "more exciting"--to that tiny group of people--if they changed a bunch of superficial stuff. Instead, it's merely far and away the best handheld device that has ever existed, with none of the absolute dealbreaker problems of android*

* poorer selection top-quality apps

* no full restore of everything when you get a warranty swap or upgrade to a new device

* malware galore; even safe apps can harm your performance and battery life

* open source "freedom" that means freedom for the carriers... Not for you

* speed, battery-life and ease of use still second best (despite certain specific features being nice on any platform, the big picture is still nicest on ios)

* worst of all: Devices abandoned (no more updates) long before you even finish paying for them!

Android is fine for some... But it comes with huge compromises. The compromises in ios are far fewer and smaller for me.

 

[unplugme71]

I don't think its a Samsung vs Apple issue. It's definitely economy. A few years ago, I bought a new Apple device because I could afford it. But now I can't do that. Consumers aren't spending as much because:

1. Either unemployed or not making as much with their other job
2. Debt is very high, 40% of their income.
3. Needs are a lot more important than wants
4. Cell phone bills have increased since the smartphone boost

Add on the fact the iPhone 5 isn't anything spectacular of an upgrade.

So people are aiming towards lower costs phones or keeping their existings ones. This is why carriers need to change their wireless plan model to remove subsidizing.

Cheaper plans means phone companies will save money and so will consumers. If a voice/data plan costs the carrier 30 a month, and they charge 60 a month with subsize costs, 20 of which is for the phone. They might charge 35/mo. The consumer pays less, the carrier makes more and doesn't have to wait 2 years to recoup that money. The consumer once out of contract doesn't pay $60/mo like they currently were.

Instead, the consumer either pays for the phone up front, or finances it on the credit card.

Personally, I don't think I'd buy a 5S. Not unless my iPhone 5 sells for the same price so I don't pay a penny out of pocket. I'll wait until my 2 years is up and that's bad for Apple sales.

 

[kjs862]

Stale? Wow, what a spoiled attitude. Remember, what you see on the surface is just that... that surface. iOS under the hood continues to evolve in numerous ways. If they were to radically change the interface every so often, it would hurt the adoption of the platform. Consistency and simplicity is key. People that buy alternative platforms are mainly driven by price.

iphone 4, 4s, 5 ... they all have the same general feel and look. the competition is heating up. apple needs to step it up!

 

[Mr. Retrofire]

iOS and tiny screens are becoming irrelevant.

Also, many are waiting for a Jailbreak.

All of this is Apple not listening to what consumers want.

iAgree. eCommerce on the iPhone 5 (small) screen? iLOL

 

[Rogifan]

So someone explain how Schiller pitches this new iPhone with a wider screen when with the 5 they went out of their way to explain why they made it taller but not wider. I'm sorry but Schiller is no Steve Jobs.

I want Apple to keep doing really great things. I don't want them just copying whatever Samsung is doing.

 

[Stella]

Yes, Apple can never make everyone happy - they aren't magical / nor can perform miracles.

With most consumer products, many times, there isn't much of a change to jump from Product 2011 to Product 2012. iPhone isn't any different. Maybe there's enough of a jump to go from Product 2011 to Product 2013.

Still, IMO ( that is , my own view ) iPhone 5 was disappointing. iOS6 also the same, maybe it should have been called iOS5.5. Apple Maps - shouldn't have been released. The entire iPhone 2012 bundle (i.e., hardware, software ) was lackluster. I didn't view the iPhone 4S as disappointing ( the phone and software - iOS5 et al ), at least Apple called Siri "Beta" - which it was.

I don't think Apple are being greedy, iPhone is a consumer product, which, from year to year, doesn't lead to much innovation ( consumer market ) - just iterations - slow feature releases, year on year.

When Siri was iPhone 4S-exclusive, everybody in the Anti-Apple crowd blamed Apple for withholding features from the older device, being greedy.

When iOS 6 on iPhone 5 was exactly the same as iOS 6 on iPhone 4S, Apple isn't innovating enough and there's no reason to upgrade.

So - maybe Apple should shut down the company and give the money back to the shareholders?!?!

After all, whatever they do - they can never please everybody.

So far, they managed to sell a large enough number of devices to be relevant for developers and they managed to earn most of the profits of the smartphone market.

 

[Danoc]

WSJ gave 2 years to Steve Jobs when he returned in 1997 before going bankrupt. We know the rest if the story.

 

[SeniorGato1]

Just purchased an S3 the other week and must say I prefer the bigger screen and customization options far more than all the other iPhones models including the 5

 

[Northgrove]

There is only one thing I find curious about this. Why are people in the supply chain wanting to be "unnamed"? If this is actually happening, it's hardly a trade secret or anything. To me, this do sound a bit like stock manipulation, or perhaps linkbait going too far. Note how the WSJ also writes that this could be because of a new product on the horizon, or (in a link in the article) that production could have picked up faster than Apple anticipated so that it's to avoid overstocking. But this wasn't chosen as the title.

I'll be hesitant about trusting this report too much for now. We'll probably hear much more about this if it's true in the coming months.

As for me, iOS 6 was much more disappointing than iPhone 5. That phone is one piece of awesome hardware. It feels impossibly light, yet very durable despite how thin it is, it didn't fall for the recent display size craze, and everything I run just flies on it. But iOS 6 was a damn wreck. The things I remember it for were negative! I would have been happier with an iOS 5.2 with "Do not disturb" as the only new feature.

 

[The Bulge]

Only the TINIEST segment of the buying public seeks a burst of "excitement" every single year from their phone. I'm one of them... so are many tech forum-goers of course.

But what most people want is the best phone possible, not the maximum amount of change for change's own sake. Change for change's sake is marketing--and that's not what I want driving the design of my phone.

The iPhone 5 would be "more exciting"--to that tiny group of people--if they changed a bunch of superficial stuff. Instead, it's merely far and away the best handheld device that has ever existed, with none of the absolute dealbreaker problems of Android*

* Poorer selection top-quality apps

* No FULL restore of everything when you get a warranty swap or upgrade to a new device

* Malware galore; even safe apps can harm your performance and battery life

* Open source "freedom" that means freedom for the carriers... not for you

* Speed, battery-life and ease of use still second best (despite certain specific features being nice on ANY platform, the big picture is still nicest on iOS)

* Worst of all: devices abandoned (no more updates) LONG before you even finish paying for them!

Android is fine for some... but it comes with HUGE compromises. The compromises in iOS are FAR fewer and smaller for me.

Listen to this man.

 

[output555]

Irresponsible journalism

Since the WSJ is owned by Rupert "Darth" Murdoch the evil of lord of all things passing as news, I discount the statement that iPhone 5 sales are slumping almost completely. No one from the company is verifying this. There are no sales figures as yet supporting the claim of poor sales. None. Therefore, it's pure speculation and conjecture. So what we have here is an unverified report, that's been given life by MacRumors and other online sites simply by repeating the same sloppy reporting.

Welcome to the new age of yellow digital journalism where sensationalist, albeit inaccurate or misleading, headlines are the norm. Shame on MacRumors for not taking a more responsible position.

 

[Danoc]

Since the WSJ is owned by Rupert "Darth" Murdoch the evil of lord of all things passing as news, I discount the statement that iPhone 5 sales are slumping almost completely. No one from the company is verifying this. There are no sales figures as yet supporting the claim of poor sales. None. Therefore, it's pure speculation and conjecture. So what we have here is an unverified report, that's been given life by MacRumors and other online sites simply by repeating the same sloppy reporting.

Welcome to the new age of yellow digital journalism where sensationalist, albeit inaccurate or misleading, headlines are the norm. Shame on MacRumors for not taking a more responsible position.

Exactly. As an investor, the only thing that matters is the earnings. So far so good.

 

[SILen(e]

With most consumer products, many times, there isn't much of a change to jump from Product 2011 to Product 2012. iPhone isn't any different. Maybe there's enough of a jump to go from Product 2011 to Product 2013.

And that's exactly the point!

The iPhone 4S doesn't have to be a completely different device in comparison to the iPhone 4 - it simply has to be much better than the iPhone 3GS.

The same with the iPhone 4 and 5 - the 5 doesn't have to be completely different than the iPhone 4S - it has to be much better than the iPhone 4 - that it is also much lighter, faster and has tons of other features the iPhone 4S doesn't have is just an added bonus.

Most of the iPhones will be sold with a contract - it is the norm in the US and it is also the most prevalent in Europe.

Contracts which run for 24 months... 2 years... the timeframe between iPhone 2G and 3GS, iPhone 3G and iPhone 4, iPhone 3GS and iPhone 4S, iPhone 4 and iPhone 5.

And all of these leaps have had lots of improvements, the devices you would get when you replaced your old iPhone were always much better than the old device.

It's funny - a few years ago, the Anti Apple-crowd was complaining that the "iSheep" would buy a new device every year to feel superior and to show off.

Now the same Anti Apple-crowd is complaining that Apple isn't innovating enough to make people upgrade every year (which isn't possible in many contracts).

So, if people upgrade every year, they are iSheep, if people upgrade only every two years, Apple is doomed...

Maybe Apple should shut down the company and give the money to the Anti Apple crowd^^

 

[The Man]

Just purchased an S3 the other week and must say I prefer the bigger screen and customization options far more than all the other iPhones models including the 5

Well, good for you! Buy what you like, and be happy about it!

Personally, though, I like less customization, because I keep altering things to the point it's driving me mad. Things are never perfect, so I let Apple decide it for me. Yes, I know, I'm sad. But I'm happy with my Apple. It's sad.

 

[jon3543]

two of the people said... one of the people... the people said.

Oh no! It's the people.

What's even more pathetic is that they're talking about "slashing" and whatnot, when Reuters reported the original figure was 65 million, which itself seems absurd. Was Apply really thinking they would sell 65 million iPhone 5's (and still more 4's on top of that) from Jan-Mar, when their best quarter, the one just past, is going to be less than that by millions? This is a month old story dragged out on a Sunday night to manipulate the stock, plain and simple.

 

[coolspot18]

1. You noticed, that more and more Android devices get rid of the MicroSD slot and just use internal memory like Apple has been doing since 2007, didn't you?

3. You do know, that 120 billion dollars can support Apple's operations for 9 more years, don't you?

1. Some do - but the Samsung Galaxies have kept them and are selling like hot cakes.

2. Great way to run a company - hemorrhage money. Apple is not in the business for charity, they're here to make money for their shareholders. Lacking in innovation or providing products that the marketplace does not want is not a way to run a company. Apple needs to continue to innovate or else they'll become the Apple of the 90s. In anycase, all your points sound very similar to what people said about Apple in the 90s...

 

[Tinmania]

Don't be silly. It's a PHONE for chrissakes. What exactly do you want Apple to do to the form factor? Make it pink, glow in the dark, and cover it in feathers?

No, what is silly is screaming that "it's a phone" when that is the last thing it is used for nowadays.



Michael

 

[jona2125]

Only the TINIEST segment of the buying public seeks a burst of "excitement" every single year from their phone. I'm one of them... so are many tech forum-goers of course.

But what most people want is the best phone possible, not the maximum amount of change for change's own sake. Change for change's sake is marketing--and that's not what I want driving the design of my phone.

The iPhone 5 would be "more exciting"--to that tiny group of people--if they changed a bunch of superficial stuff. Instead, it's merely far and away the best handheld device that has ever existed, with none of the absolute dealbreaker problems of Android*

* Poorer selection top-quality apps

* No FULL restore of everything when you get a warranty swap or upgrade to a new device

* Malware galore; even safe apps can harm your performance and battery life

* Open source "freedom" that means freedom for the carriers... not for you

* Speed, battery-life and ease of use still second best (despite certain specific features being nice on ANY platform, the big picture is still nicest on iOS)

* Worst of all: devices abandoned (no more updates) LONG before you even finish paying for them!

Android is fine for some... but it comes with HUGE compromises. The compromises in iOS are FAR fewer and smaller for me.

Actually coming from adopting both Android and iOS on their day one releases I find the most lacking one to be iOS as of now. 3 years ago it was a totally different story. I have found the iPhone line to have the most dismal battery life so far. The 6th generation iPhone(s) so far has netted me 5-7 hours of sitting in my pocket use. I said that plural because it's my 3rd phone I really thought it was defective but this issues has been long standing on all my iPhone's, especially signal which is why I've panicked and gone through so many replacements during each generation. I've demoted it to a WiPhone now so battery life is outstanding though. My Galaxy S3 nets me a good 14-18 pocket time. Now with constant usage the iPhone 5 literally nets 3 hours at best while side-by-side with the GS3 I get 10+. I find that embarrassing though very expected due to the more things Apple stuffs into these things with minuscule battery increase. Not speaking for Android or Apple because I love both systems equally but I definitely find the iPhone to be least productive for me. The screen is much too small to be practical and it's awkward to hold for some reason I really can't figure out why I just can't adjust from the previous design. As for the list above I'll agree while disagreeing. The app selection is great on Android for getting things done, the app selection on iOS is great for having an experience. In terms of a full restore I've had that natively offered since early Android. A little bit to add I also have native integration to iTunes should I so choose though iTunes serves no use because all my music is cloud based and iTunes can't handle the load, over 100 thousand songs, as well other programs have. Haven't had malware issues since the iPhone 4 so no comments there, seems to be the past. Open source freedom combines two of your concerns, I can have the latest operating system on Android within a few months. I'm running 4.2.1 right now. Ease of use I'll give you but that's the nature of the design. From toddler to grandma, the iPhone can be picked up and used. I will say that that's where the ease of use stops though. iOS slows me down when I use it, I switch day to day. There's so much wishing from me that goes into iOS being more friendly with tasking and true day-to-day integration that it's disappointing it takes so long. That and the fact Apple has to sue everything in sight which kills the mood. So yea those are the rebuttal to your thoughts. These are mine and mine only of course and I always open up both sides. I stand on the line, I don't have bias towards either because neither is greater than the other, that would be impossible. They each hit each others weaknesses and that's what drives the true innovation.

 

[unigolyn]

I certainly hope not. Large screens are just a gimmick.

That's absolutely absurd. Large screens aren't "just a gimmick". It's just about the most non-gimmicky thing about phone hardware. A bigger screen is always better from a presentation and UI flexibility perspective. However, increasing screen size affects portability and manual usability. There needs to be a balance between the two.

And it isn't magically the 5x7.5 cm that Apple decided on in the first iPhone. The yammering about thumbs hitting the entire screen is rationalized drivel. Apple is stuck at 320/640 pixel width because iOS turns out to be fundamentally flawed - it's the opposite of resolution independence. The iPhone 5's screen is basically a kludge owing to that lack of foresight.

iOS was not initially designed for third-party apps (lack of foresight), the SDK was released for its initial, resolution-locked model (lack of foresight), and now Apple is stuck with losing the backwards compatibility of its entire app ecosystem.

Turns out Forstall's screwups are systemic and not just limited to Maps and Siri and skeuomorphism.

 

[Cali Fornia]

whatever...

...why rumors about a cheaper iPhone? $0.99 (on contract) for iPhone 4 isn't cheap??

blah blah blah

Omg when do people like you finally realize that the world doesn't only consist of the USA.
In every other country in the world, you pay significantly more for a contract including an iPhone, other than in the US where most high-end devices cost the same.
Just compare the off-contract prices of several phones and you will always see the iPhone leading the top of the list as being the most expensive. Period.

 

[andyx3x]

Personally, though, I like less customization, because I keep altering things to the point it's driving me mad.(

I'm the same exact way.

 

[Rogifan]

Exactly. As an investor, the only thing that matters is the earnings. So far so good.

I wish after this down turn we could get people out of the stock that probably shouldn't be in it. Obviously earnings aren't all that matter. Look no further an Amazon. Last quarter they reported a loss and the next day the stock was up 6%. Apple's stock drops 5% on unconfirmed rumors from DigiTimes or WSJ.

 

[Wicked1]

I see this in a two fold issue:

They are losing market share to Samsung with the Galaxy Line of Phones, which is more viable since Samsung has two new phones one with a larger screen and both running very smooth with the new OS, a lot of ppl around me are getting either the Note II or SG3.

The other option is with all the rumors swirling about the 5S or 6 maybe out in June, people do not want to go into a 2 year contract if they can hold off a little more....This one probably has some truth, but it will be interesting to see, because I know a lot of people who are tired of the outdated iOS and have gone to Samsung's because they are newer and Fresh.

Either way when the new iPhone comes out, Apple will sell a ton, they always do, and besides who really knows the drop in order numbers but Apple anyway, for all we know is they may have ramped up due to short availability when the 5 was released.