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Apple cutting iPhone 5 parts orders in half, sources claim

updated 10:09 am EST, Mon January 14, 2013

Phone allegedly seeing 'weaker-than-expected' demand

Apple is slashing its parts orders for the iPhone 5 due to demand falling lower than expected, say Wall Street Journal sources. For the current quarter Apple has reportedly cut screen orders to about half of what it had originally planned for. The sources note that Apple told suppliers about reduced orders last month; one source elaborates that more than just screens have been affected. Sharp, LG Display, and Japan Display Co. are allegedly the main suppliers for iPhone 5 screen panels.

The Journal's report suggests an unexpected tidal shift for Apple, which has been used to intense demand for each iPhone up until the months immediately preceding a new model. The company now faces intense competition from companies like Samsung however, and some critics have complained that the iPhone 5 is too similar to the iPhone 4S, and hasn't kept pace with the evolution displayed by Android devices. The primary upgrade of the 5, for instance, was a 4-inch screen, at a time when many Android devices were already coming closer to 5 inches.

A cut in Apple component orders could have large ramifications for Asian supply companies, some of which count Apple as an important or even primary customer. Sharp in particular has been suffering in its TV business, and could use the money from Apple orders to help it stay afloat.



By Electronista Staff
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Comments

  1. stenniz

    Fresh-Faced Recruit

    Joined: 03-05-10

    stenniz

    Unless you work inside Apple you have no clue what they are up to! Just saying things to hear yourself talk is ignorant. Just shut-up and put your opinions where they matter! In the toilet.Move on.

  1. Zanziboy

    Forum Regular

    Joined: 08-27-08

    New iPhone

    I would not be surprised if component orders are being slashed as a new iPhone, the iPhone 5s, is likely to come out in March.

  1. svencito

    Fresh-Faced Recruit

    Joined: 12-12-99

    Agreed

    Originally Posted by stennizView Post

    Unless you work inside Apple you have no clue what they are up to! Just saying things to hear yourself talk is ignorant. Just shut-up and put your opinions where they matter! In the toilet.Move on.



    The only thing they know is how to manipulate the stock price in the short run by providing these 'assumptions'.

  1. Grendelmon

    Dedicated MacNNer

    Joined: 12-26-07

    Wow

    Originally Posted by stennizView Post

    Unless you work inside Apple you have no clue what they are up to! Just saying things to hear yourself talk is ignorant. Just shut-up and put your opinions where they matter! In the toilet.Move on.



    Nice comment, er... rant. You mad, bro?

    Did mommy take your iPhone away from you?

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    I don't know, Grendelmon. The point made was reasonable, to me. Perhaps a bit excited, and a weensie harsh at the end, but reasonable over all.

    Feel free to flush. ;)

  1. mojkarma

    Fresh-Faced Recruit

    Joined: 10-13-11

    It's really funny how some fanboy kids react as if their life is in question. :brick:
    But let's come back to the article. I wouldn't wonder if the iphone5 doesn't sell as well as some previous versions. There is not really a lot of new things in there. Don't forget, some of those new features are hardly available in some countries outside of the usa and siri is available only for the big languages. So, quite a lot of people don't have a reason to switch from their iphone4, just for a slightly bigger display. And above that, the new iphone is also slightly more expensive.
    I can at least talk in my own name. I have an iphone 4 and I usually change every other version, so after the 4s which I omitted the iphone 5 would be my choice. But I don't see one single reason to switch. The new maps are bad, navigation is equally bad because the maps are not detailed, siri doesn't work for my country/language, no company of my interest uses passbook. So, not one single reason to switch. Apple really needs to try harder. The situation is changing and Samsung is obviously doing well with their Galaxy smartphones.

  1. Chrislove22

    Fresh-Faced Recruit

    Joined: 12-27-12

    It seems like Android has been ahead of iPhone in features and new technology for a few years now, but the advantage with Apple is that everything just worked so flawlessly. Now, it seems like Android has things pretty well ironed out, and Apple is struggling with some of the problems mojkarma just mentioned. Makes sense that Apple would lose some of its market share.

    Do you really think the iPhone 5S will be out as early as March?! Seems early.

  1. TyPod

    Fresh-Faced Recruit

    Joined: 05-28-07

    Originally Posted by ZanziboyView Post

    I would not be surprised if component orders are being slashed as a new iPhone, the iPhone 5s, is likely to come out in March.



    Wouldn't most component parts be the same? I have no clue, just looking at the iPhone 4 to 4S, they look almost identical.

  1. chas_m

    MacNN Staff

    Joined: 08-04-01

    I don't know that this necessarily means anything at all. They just finished a HUGE holiday quarter, they're not going to sell as many in Jan-Mar, so why WOULDN'T they cut orders? This would be news if Samsung, Amazon (et al) wasn't cutting back on orders (compared to holiday-season orders) too, or if this was a rare miscalculation from Tim "operations master" Cook, but there's really no evidence that that's the case (though it could be).

    Smells a bit like stock manipulation planted sources to me ...

    Still we won't have long to wait to verify it. Apple will be legally obligated to forecast WAY lower sales in their fiscal Q2 if iPhone (the company's flagship product) isn't selling well. So we'll know whether this is BS or not in about 10 days.

  1. Ian

    Fresh-Faced Recruit

    Joined: 08-15-00

    This is BS

    The WSJ have corrected themselves. Why does every tech site spread rumors? This is not news, just pure speculation based on nothing.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by TyPodView Post

    Wouldn't most component parts be the same? I have no clue, just looking at the iPhone 4 to 4S, they look almost identical.



    Almost every single part of the iPhone 4 and 4S is different.

    As I recall, it's basically only the display that's the same. Even the vibration motor was switched.

    They really went through tremendous effort to make it *look* like almost nothing had changed (which is why all the rants over how "disappointing" it was, and that Apple were "getting lazy" and "losing their touch" were so absurd. They ENTIRELY missed the whole point of what Apple was doing: "Here. iPhone. You love it. Now, the new iPhone: It's exactly the same as the one you love and see everywhere. Except better in every way.")

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