WSJ: Apple cuts iPhone 5 component orders in half due to weak demand
Apple reportedly sent word to suppliers in December that it would be reducing parts orders for the recently released iPhone 5 on "weaker-than-expected" demand, with some orders being cut in half from original expectations. ?
![image](http://photos.appleinsidercdn.com/iPhone5.092412.A4.jpg)
Sources familiar with the matter told The Wall Street Journal that Apple cut "roughly half" of its orders for the iPhone 5's 4-inch screen and initiated a drawdown on other components orders?for the January to March quarter.?
It is unclear what exactly is to blame for the reduction but ongoing rumors point to the possible introduction of a cheaper model to the iPhone line sometime in 2013.?
The WSJ report is joined by a corresponding article from the Nikkei (via Brightwire), which claims the revised Apple orders have prompted Japanese LCD makers to look for business elsewhere. Apple is sourcing the 4-inch Retina displays used in the iPhone 5 from Japanese manufacturers Japan Display and Sharp, as well as South Korea's LG Display.
Supply of the iPhone 5 finally caught up to demand in mid-December when a number of international Online Apple Stores listed the smartphone as being in stock for the first time since its launch at the end of September.?
![image](http://photos.appleinsidercdn.com/iPhone5.092412.A4.jpg)
Sources familiar with the matter told The Wall Street Journal that Apple cut "roughly half" of its orders for the iPhone 5's 4-inch screen and initiated a drawdown on other components orders?for the January to March quarter.?
It is unclear what exactly is to blame for the reduction but ongoing rumors point to the possible introduction of a cheaper model to the iPhone line sometime in 2013.?
The WSJ report is joined by a corresponding article from the Nikkei (via Brightwire), which claims the revised Apple orders have prompted Japanese LCD makers to look for business elsewhere. Apple is sourcing the 4-inch Retina displays used in the iPhone 5 from Japanese manufacturers Japan Display and Sharp, as well as South Korea's LG Display.
Supply of the iPhone 5 finally caught up to demand in mid-December when a number of international Online Apple Stores listed the smartphone as being in stock for the first time since its launch at the end of September.?
Comments
AI, you can't say one thing in the title then a completely different scenario in the article. It's confusing.
But whatever, the stock will be sure to drop tomorrow.
http://www.reuters.com/article/2013/01/14/us-apple-iphone-demand-idUSBRE90D04B20130114
Apple was expected to order 65 million screens?
Considering the best iPhone quarter is only 37 mil., and that's Christmas quarter. WTH Apple to order this much in a quarter AFTER Christmas?
Makes no sense.
Unless Apple was modeling significantly higher demand than their usually, already-conservative forecasts anticipated. Such as expecting to move 65 million units this quarter, but achieving "only" 50 million. Still blows out previous quarter sales, but also below their expectations.
Not saying that's what happened, just explaining how its possible that even with sales coming in below internal expectations it could still be a blowout quarter.
??
http://www.businessinsider.com/the-real-reason-apple-cut-its-iphone-5-orders-2013-1
Is that cuts in half of what was already ordered, or cuts half of what was estimated they would order? My guess is that there will be a clarifying report in a day or two and it will turn out that this is a non story. The Jan 23 report will be quite interesting.
So, the iPhone 5 have been in stock for few weeks after months unavailability due to high demand. Now all the sudden the demand is weak and Apple is doomed. Do these people read what they write?!! You know.. it is impossible to be due to supplier change, quality control issue, or many other reasons that make more sense.
Sure the demand now is not as high as it used to be few weeks ago but we all know Apple is the king of supply management and they are conservative with their orders.
Apple is Doomed™
Quote:
Originally Posted by Quadra 610
??
http://www.businessinsider.com/the-real-reason-apple-cut-its-iphone-5-orders-2013-1
But surely if there was a new model coming up (due to a new aggressive update schedule) they would have known that, and simply not ordered as many iPhone 5 parts in the first place, rather than order a year's worth and then cancel half the order.
And yet Apple still followed these reports with record quarters.
Nothing to see here.
For me ios works great on the iPad( multitasking needs a re-think) but for the iPhone it needs to change. I suppose ios was originally designed for the iPad and it's starting to show.
Still love my ios products but on the phone side Android has my head turned
Never write Apple of!.
Apple reportedly cuts back iPhone 4S orders
Sylvie Barak
11/9/2011 8:30 PM EST
SAN FRANCISCO--Apple Inc. may be cutting back on orders of components and parts for its latest iPhone 4S, due to weaker demand and shortages in the supply chain according to Chinese media reports.
http://www.eetimes.com/electronics-news/4230493/Apple-reportedly-cuts-back-iPhone-4S-orders
That article was from 2011, right before the epic earnings reported in Jan 2012.
Here's another article from that same time.
UH-OH: Apple Said To Cut Orders To Asia Suppliers On iPhone 4S Problems
http://www.businessinsider.com/apple-cutting-orders-to-asia-supply-chain-2011-11#ixzz2HvmYlA00
Nope. Like I said, this has nothing to do with (Apple's) Q1 quarter but Q2 (after holiday quarter). So was Apple so dumb to order 65 M. phone (before they cut it) when they don't sign up any new major carrier?
You have to wonder if maybe they expected to have the China Mobile deal in the bag by now... Tim was in china just a few days ago so that negotiation may be taking longer than they hoped it would so they are cutting orders until it actually happens. If meetings last week determined that it nothing will be signed for another few months at least then no point having 30 million iPhones sat doing nothing - that's not how Tim does things and if there is one thing he knows it is supply chain management.
Assuming this assumption is even vaguely correct then these cuts in orders are nothing to do with a fall in demand in existing markets but because a massive new market failied to materialise in line with apples predicted schedule...
I was thinking about it and it could very well be but Apple is always cautious so I still don't think they would order this much in advance unless they're pretty sure. Still it has nothing to do with "weaker demand" WSJ claimed.
Might explain why the 5 is launching among smaller carriers much faster than previous models. I mean who saw Straight Talk offering it? The 4, sure, but the 5?
Getting tired of all the "finally in stock" mentions as well. All the brick and mortar stores in Alaska were fully stocked with all colors and capacities two weeks after launch, so availability wasn't exactly an issue for this product cycle assuming other states had their shit equally together as the frozen North.
Either way, is this really news? Apple is going to post another record quarter, and the brand remains strong. Nuff said.
Exactly. I has become increasingly clear that all the major Funds and Investment Banks along with Media are all involved. No wonder why there are Occupy Wall Street action in US.
~$500 will be the new base where Apple will be going from. I expect it to push through $1000 if the overall market is good enough.
Wonder if someone at Apple will respond to this rumor?