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Apple Slashes iPhone 5 Part Orders Due to Weak Demand
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Yes of course, it's sad that the rational explanation of such a news based on last year's financial reports will go ignored while wild theories of either "gloom and doom" or "WSJ is just a bunch of hacks!" with the occasional "Samsung sucks!" will be the discussion here.
The level of discussion really has gone down in these forums. It's impossible to actual discuss things. This is a financial story, why are we discussing anything but financial information ?
They need to make sure they have a TON of devices in advance of the next release. I think the 4 week delay at launch turns off a lot of perspective buyers. By the time the delay goes down and people can walk in or order online easily, the phone isn't new anymore, and people decide to just wait for the next one at that point. Not good.
AT&T to blame for slow sales?
Personally I think AT&T is somewhat to blame because in years past when the new iphone came out as long as you has your old one close to a year they would let you upgrade but now they are sticking to the 18 months to upgrade. That takes out millions of folks that would like to upgrade like myself but are now not eligible. I need to wait until May or pay an additional $250 above the price of the phone, same with my daughters and wife. There is no way we are spending an extra $1000 to upgrade all 4 of us. If AT&T did it that same as in the past, we were buyers when the phone came out several months ago.
Personally I think AT&T is somewhat to blame because in years past when the new iphone came out as long as you has your old one close to a year they would let you upgrade but now they are sticking to the 18 months to upgrade. That takes out millions of folks that would like to upgrade like myself but are now not eligible. I need to wait until May or pay an additional $250 above the price of the phone, same with my daughters and wife. There is no way we are spending an extra $1000 to upgrade all 4 of us. If AT&T did it that same as in the past, we were buyers when the phone came out several months ago.
As I look at Apple's current product line I don't see much that I would like to buy to replace my older units.
iMacs without Firewire? Too many products without optical discs (including Blu-ray)? Wireless keyboard without number keys? A goofy wireless mouse? Even though the computing speed has increased the disease of Thinness has led to feature loss. You simply cannot buy a Mac that can be configured like an HP h8 or h9. The Windows users are having all the product-choice fun these days.
That might be OK for the iPad and MacBook Air crowd but it's not what I'm looking for.
iMacs without Firewire? Too many products without optical discs (including Blu-ray)? Wireless keyboard without number keys? A goofy wireless mouse? Even though the computing speed has increased the disease of Thinness has led to feature loss. You simply cannot buy a Mac that can be configured like an HP h8 or h9. The Windows users are having all the product-choice fun these days.
That might be OK for the iPad and MacBook Air crowd but it's not what I'm looking for.
Because everyone reporting on this Wall Street Journal story is pushing the meme that this is due to weak demand for iPhone 5. Of course the discussion is going to turn to Samsung, screen size, iOS being stale, etc.
I wouldn't be surprised if the WJS article were true.
From what I can see, it seems quite plausible.
I think the iPhone peaked with the iPhone 4 (despite Antennagate). It was perceived as brand-new stunning design that created great hype. Which the 4S and the 5 weren't. iPhone craze & demand and hype has been declining since then, at least where I live (and in my perception). Samsung's Galaxy has been on the rise at the same time. I see more and more Galaxys every day, in a country that used to be pretty much "iPhone only" previously (Smartphones only).
Both 4S and 5 brought not much new to the table, hardware-wise. Siri is quite pointless in my country, except for voice dictation, and the iPhone has only a slightly bigger screen - which still cannot compete with the bigger screens many competitors offer - if one is looking for a big-screen phone. Me, personally, as an iPad user I don't; I care more about portability, but the general trend seems to go somewhat in the opposite, "phablet" direction.
I already had the impression last year that the iPhone 5 was a (relative) lackluster launch in a my country, compared to the 4, and maybe even 4S. That's not to say that they didn't sell a ton of phones at and shortly after the initial launch - but it has considerably weakened since then. And I also didn't see the long queues waiting in front of stores at launch, as with the 4.
From what I can see, it seems quite plausible.
I think the iPhone peaked with the iPhone 4 (despite Antennagate). It was perceived as brand-new stunning design that created great hype. Which the 4S and the 5 weren't. iPhone craze & demand and hype has been declining since then, at least where I live (and in my perception). Samsung's Galaxy has been on the rise at the same time. I see more and more Galaxys every day, in a country that used to be pretty much "iPhone only" previously (Smartphones only).
Both 4S and 5 brought not much new to the table, hardware-wise. Siri is quite pointless in my country, except for voice dictation, and the iPhone has only a slightly bigger screen - which still cannot compete with the bigger screens many competitors offer - if one is looking for a big-screen phone. Me, personally, as an iPad user I don't; I care more about portability, but the general trend seems to go somewhat in the opposite, "phablet" direction.
I already had the impression last year that the iPhone 5 was a (relative) lackluster launch in a my country, compared to the 4, and maybe even 4S. That's not to say that they didn't sell a ton of phones at and shortly after the initial launch - but it has considerably weakened since then. And I also didn't see the long queues waiting in front of stores at launch, as with the 4.
And by customers, you mean a select few on an internet forum?
Believe me, 'Customers' dont want huge screens. I wasn't over happy with the increase to the iP5, but I've got used to it now.
A friend of mine produced the Galaxy Note 2 in the pub the other night, he got more stick that I ever thought possible from a phone.
In general, Consumers dont want 5" plus screens, we've reached as far as we can go with screen size, ram, pixel count... It's time to focus on the software again.
But AT&T reported record sales for the quarter.
Newsflash - that 18 month requirement? It's not ATT. It's Apple - and what they negotiated with ATT. Apple dictated the terms of that one.
And ATT reported record sales for SMARTPHONES. Not iPhone specifically. One reason why I objected to the headline here on MR - because that's not at all what the actual press release from ATT stated. And now people (like you) think otherwise.
Analysts say iPhone slowdown already expected
NEW YORK (MarketWatch) -- Analysts at two separate firms said Monday a report of lower orders by Apple Inc. AAPL -3.25% for its iPhone 5 has already been reflected in their estimates and that no additional cuts have been detected. "The article says Apple notified suppliers of the cut last month, which is when we and most of the Street reported it," UBS said. "Our analysts indicate no changes since." In December, UBS cut its iPhone 5 sales estimate. Analyst JoAnne Feeney of Longbow Research said she expects the Wall Street Journal article "to cause some concern" but added that "our checks indicate that we are seeing only the usual seasonal decline in builds and the cuts reflect a component inventory build amidst some manufacturing limitations." Apple shares fell 2.8% in premarket trades.
NEW YORK (MarketWatch) -- Analysts at two separate firms said Monday a report of lower orders by Apple Inc. AAPL -3.25% for its iPhone 5 has already been reflected in their estimates and that no additional cuts have been detected. "The article says Apple notified suppliers of the cut last month, which is when we and most of the Street reported it," UBS said. "Our analysts indicate no changes since." In December, UBS cut its iPhone 5 sales estimate. Analyst JoAnne Feeney of Longbow Research said she expects the Wall Street Journal article "to cause some concern" but added that "our checks indicate that we are seeing only the usual seasonal decline in builds and the cuts reflect a component inventory build amidst some manufacturing limitations." Apple shares fell 2.8% in premarket trades.
But looking at Apple's units sales, it's apparent this isn't "weak demand", Apple's always had bursty sales of iPhones (launch quarter is insane, 2nd quarter levels off, 3rd quarter drops slightly, and on until the refresh).
What was a problem was really last year's sharp drop between Q2-Q3. Apple didn't control that one well enough and it ended up hurting them. All rational people would think Tim Cook would want to avoid a repeat this year.
Exactly, and not even everyone on this site even wants a bigger phone, we're not all Dom Joly with our phones here, personally I'd really love to see something *smaller* like an iPhone Nano.
But what I really wonder is that if Apple were to create one of those gawd awful phablets, which competitor's phone feature would people on here demand Apple go and chase next?
AT&T said they had a record smart phone sales of both iPhone and Android:
AT&T Inc. (NYSE:T) announced today that it sold more than 10 million smartphones in the fourth quarter of 2012, topping its previous record quarter of 9.4 million, set in the fourth quarter of 2011. This included best-ever quarterly sales of Android and Apple smartphones.
You know it is possible to have record iPhone sales and Android/Windows sales; it doesn't have to be one or the other.
Thanks WSJ. Release an article you know is going to slam AAPL stock late Sunday night when a non-institutional investor can do nothing about it. To add insult to injury, make me pay for a subscription if I want to read the article. Tired of being a pawn in this game for rich big businessman and big government politicians. Just going to have to ride it out and hope there is another wave before I sells shares.
I just told my wife yesterday that "Im waiting 1, maybe 2 more iPhones before changing'. (iP 6 will be the last IP i wait for)
I want a 4.8-5.5" screen.
Sue I love the eco-system, but this is getting pathetic.
If the screen doesnt increase on the 5S, I wont upgrade.
I dont need a better camera, as I have a DSLR
Make the current iPhone 4" the "small screen" and give us the big 4.8 & 5.5" screens.
You little hands people can keep the 4" screen. The rest of the common world wants our phone web viewing experience (and video watching) to be better. a 4" screen doesnt cut it.
I want a 4.8-5.5" screen.
Sue I love the eco-system, but this is getting pathetic.
If the screen doesnt increase on the 5S, I wont upgrade.
I dont need a better camera, as I have a DSLR
Make the current iPhone 4" the "small screen" and give us the big 4.8 & 5.5" screens.
You little hands people can keep the 4" screen. The rest of the common world wants our phone web viewing experience (and video watching) to be better. a 4" screen doesnt cut it.
Nowhere in that statement does it single out iPhones for having the best quarterly sales. While entirely possible - that's not what the release says.
Hey I'm not disagreeing with you but that's how this is being reported in the media. I guarantee you if you go to any tech site today the headline will be weak iPhone demand (and then the flame war comments to follow).
And even though this story was previously reported the stock is still down over 3% pre market. Over an apparent 'nothing to see here' story.
And we have to not rationaly discuss this... why ? Because some blogs out there want to go "doom and gloom" lower common denominator doesn't mean the MacRumors community must sink this low.
The stock is always down over good and bad news anyhow. Who cares ?
Perhaps maybe update your OS every so often? My iphone is like a time machine that brings me back to 2007. Apple has gotten very lazy, and their "simplicity" excuse isn't cutting it anymore
OK it says best ever Android and Apple quarterly sales. How else should a person read that other than both Apple and Android saw record sales?
Verizon reported record sales to, with a higher mix of iPhone sales. Now maybe that's just timing and not an overall trend, but I would argue if Verizon is showing higher iPhone sales than it would be odd if AT&T didn't.
http://www.theverge.com/2013/1/9/3854652/verizon-announces-9-8-million-smartphone-sales-q4-2012
To be honest this isn't unexpected to me,the Iphone5 is great but it shares almost the same Iphone 4 and 4S design,the Home screen in unchanged by years,no real multi tasking,no digital pen,no drag and drop,between two appz,till the 5 you had only limited slotz for the open with and no "open with list" where to choose which app to associate,no wireless or bluetooth icon-button on the home to save time,no live backgrounds..no direct wifi..,i hope Ive and Apple are really working hard to have what Android has...or jailbreakable iphone have..bit as you know Ios6 remains unbreakable....and if Android developers would start to improve the look of their appz...well..to be honest the Evolution multitrack app for Android its something Apple needs to think well about it...because is really impressive and it shows what it could come..
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