Apple has cut orders for iPhone 5 parts due to weaker-than-expected demand, according to separate reports from The Wall Street Journal and Japanese financial daily Nikkei. Apple has reportedly asked LCD panel suppliers to cut supply, down from an initial plan to order about 65 million units in the first quarter. In September last year, the Cupertino, California-based company announced that five million units of its first handset with 4G LTE support and 4-inch screen were sold in the first three days of release, but has not made any related announcements since.
What Else You Need To Know
- There have been reports that Apple is releasing this year a low-cost handset in addition to the high-end iPhone 6 but a key Apple exec has denied the plans.
- Priced at $649 contract-free and $199 on a two-year contract, the iPhone 5 features a high-resolution, 4-inch screen, LTE support, and an A6 processor that offers twice the performance, and is 20% lighter than its predecessor.
Other sources
It's important to note that a drop in part orders does not necessarily mean that iPhone 5 sales are disappointing.- Dante D'Orazio , The Verge
Some may try to claim that the decrease in orders is due to Apple's plans to release the next iPhone as soon as June, but it seems to us that cutting orders this early doesn't quite link to that.- Michael H., Phone Arena
- Other
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Apple cuts LCD panel orders for iPhone 5 on weak demand: Nikkei
Japan Display's plant in Nomi, Ishikawa Prefecture, where the iPhone maker has invested heavily, is expected to temporarily reduce output by 70 percent to 80 percent compared to the October to December period, the financial daily reported.
- Other
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Apple said to halve orders for iPhone 5 displays, possibly due to 'weaker-than-expected' demand
It's important to note that a drop in part orders does not necessarily mean that iPhone 5 sales are disappointing. Apple could be prepping for a new model and it already has all the components it needs until it's released, or the company could be switching part suppliers.
- Phone Arena
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Apple cuts iPhone 5 display orders in half, possibly on weak demand
Some may try to claim that the decrease in orders is due to Apple's plans to release the next iPhone as soon as June, but it seems to us that cutting orders this early doesn't quite link to that.
- iPhone Freakz
- Apple Cuts Orders For iPhone Parts Due To Weak Demand
- iPhone Hacks
- Apple Cuts iPhone 5 Component Orders By Half Due To Weak Demand
- Apple Insider
- WSJ: Apple cuts iPhone 5 component orders in half due to weak demand
- iMore
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Apple supposedly cuttings orders for iPhone 5 components
Wall Street (the actual financial district, not the Journal) is wacky when it comes to Apple, punishing them for among the highest profits in the world, while rewarding companies that have barely if ever turned a profit. In the meantime we have AT&T and Verizon in the U.S. pre-announcing record smartphone sales, and Verizon reporting a higher iPhone mix than ever before.
- iPhone In Canada Blog
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Apple Has Reportedly Cut iPhone 5 Components Due to Low Demand
Sharp, Japan Display Co. and LG are the reported suppliers of iPhone 5 display panels, which are at half of what was previously expected. If these sources are correct, the lack of demand could be a response to the fact Apple faces more competition than ever when it comes to the iPhone.