Apple Reportedly Cutting iPhone 5 Component Orders Due To Weak Demand
Apple has reportedly cut component orders from suppliers due to weak demand, despite being Apple’s fastest-selling iPhone over launch weekend. Since then, sales have apparently not been as high as Apple expected.
Orders for iPhone 5 screens have been cut in half for the January-March quarter and Apple has also cut orders for other components as well. Weak demand isn’t Apple’s only challenge as Samsung still holds the spot for world’s largest smartphone vendor by market share.
In the third quarter of 2012, Apple held 14.6 percent of world-wide smartphone shipments, which is down 23 percent in the fourth quarter of 2011 and the first quarter of 2012. In contrast, Samsung rose to 31.3 percent in the third quarter of 2012, compared to 8.8 percent in the third quarter of 2010.
Apple cutting down on parts orders might have nothing to do with weak demand. It’s possible that Apple made bigger component orders during the October to December quarter because of manufacturing difficulties, which could have led to shipping delays. As a result, Apple may have reduced orders to get rid of some of those parts.
Apple could not be reached for comment.
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