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Apple Reportedly Experiencing Weak Demand for iPhone 5, Component Orders Severely Reduced

Monday, January 14, 2013

It often seems like stories about the demand for Apple’s iPhone end up being very one-dimensional.  Usually, we’re talking about customer demand that’s off the charts and Apple’s struggle with suppliers to find parts and get the devices made in a timely manner… But that’s not always the case, as we’re seeing today with Wall Street Journal reports of “weak demand” for iPhone 5 and reduced component orders.

iPhone5.092412.A4Before you go writing off these reports, consider that the WSJ is talking about cutbacks of about half of Apple’s usual 4-inch screen orders (and other components). This reduction applies for the January-March quarter, and has analysts scratching their heads about a cause. It would seem the weak demand might stem from the cheaper iPhone rumors that have resurfaced as of late. Why spend top dollar for an iPhone 5 when a newer, cheaper device might be coming down the pipeline (and with a bigger screen?!).

At least on other analysts dismissed the idea that iPhone 5 demands are softening. J.P. Morgan analysts Mark Moskowitz suggested that order cuts could mean better manufacturing yields and less component wastes when assembling the iPhone 5.

If this softening in iPhone 5 demand holds true, the history of the iPhone 5 might turn out to be unimpressive relative to Apple’s other marquee releases. After catching up with demand about a month ago, the iPhone 5 has apparently become a little too available, and while it was bound to happen, this comfortable position probably isn’t something Apple hopes to make standard.

 

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  • NeoDelRio

    I bought an iPhone on the first day and upgraded to the iPhone 4… iPhone 5 is practically the same phone. If I am gonna get stuck in another 2 year contract until 2015, why would I get the phone that many people couldn’t tell the difference from the 2010 version… I want a phone with a bigger screen, like the Nexus 4, GS3, or the Note 2…

  • Borz

    I love how these analysts keep making up fantastical excuses for drop in share prices and drops in demand etc.

    The fact is: I have the iPhone 5, and between the botched Maps, the useless Passbook, the questionable battery life on LTE, and the fact that my wife’s iPhone 4 connects to hotel wifi just fine, and my iPhone 5 is struggling…. I’m probably never going to get another iPhone.

    I have literally gone from recommending the iPhone 3G to all friends and family, to recommending everyone stay away from the iPhone 5.

    Those are the simple facts of dropping demand and share prices..

  • http://www.facebook.com/katrina.kilgore Katrina Kilgore

    Here’s why no one is upgrading to the iPhone 5 – having to spend even more money. It’s nice they changed the charger and the screen is a little bigger, but it made all the accessories such as cases, cords, stands, etc. obsolete. When people would already have to scrape their wallets to pay for the phone, the idea of having to pay for all of it, all over again isn’t that appealing. Especially in this economy, when there isn’t that much of a change to the phone, something like this looks like its only an attempt to have us fork out more money.