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Analysts say supply chain order cuts do not mean demand is soft for the Apple iPhone

Posted: , by Alan F.

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Analysts say supply chain order cuts do not mean demand is soft for the Apple iPhone
Earlier today, the Nikkei Asian Review reported that Apple had cut orders to its suppliers by 30%. Some media outlets quickly took that to mean that demand for the Apple iPhone 6s and Apple iPhone 6s Plus is lagging. But this evening, Creative Strategies analyst Ben Bajarin said that his own checks of the Apple supply chain show that the lower component orders have nothing to do with demand for the iPhone 6s and iPhone 6s Plus.

That happens to match the assessment of the situation made by Piper Jaffray's Gene Munster. The analyst, no stranger to loyal PhoneArena readers, says that talk of Apple cutting component orders are estimates that are not related to the number of iPhone unit sales that Apple will eventually report on January 27th.

Ironically, it was a similarly bearish supply chain story published by The Nikkei in January 2013 that ruffled the feathers of Apple CEO Tim Cook. At the time, the rumor du jour was that Apple had slashed supply chain orders by 50% because of sharply lower demand for the iPhone. The Wall Street Journal printed its own version of the story, focusing on the Apple iPhone 5c. Both papers were later proved wrong when Apple reported its earnings showing a 29% year-over-year gain in iPhone sales to 48.4 million. As Tim Cook has pointed out, news from the supply chain often has nothing to do with the demand for Apple's products.

"I don't want to comment on any particular rumor, because I would spend my life doing that, but I would suggest it's good to question the accuracy of any kind of rumor about build plans...and I'd also stress that even if a particular data point were factual, it would be impossible to accurately interpret the data point as to what it meant for our overall business, because the supply chain is very complex, and we obviously have multiple sources for things. Yields might vary, supplier performance can vary, the beginning inventory positions can vary, I mean there's just an inordinately long list of things that would make any single data point not a great proxy for what's going on."-Tim Cook, January 2013

The original report published today in the Nikkei Asian Review actually downplayed the 30% cut in supply chain orders, calling it an "inventory adjustment." The last line of that paragraph is the most telling, "Apple's products and brand have not lost their appeal, and older models have continued to sell."



source: AppleInsider

67 Comments
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posted on 05 Jan 2016, 20:47 17

1. tbacba (Posts: 98; Member since: 31 Mar 2010)


Alan F. just a quick question: do you have any connections to Apple? Every article that paints a glowing picture of that company and their products seems to be written by you. Seriously, I am just wondering?

posted on 05 Jan 2016, 20:51 1

3. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


You can not be serious.

posted on 06 Jan 2016, 02:17 2

24. TheWeasel (Posts: 403; Member since: 26 Dec 2014)


I don't like to assume things about anyone nor insinuate, but I think you might have noticed that he did seem to have written several articles on Apple highlighting some achievement of theirs or some other positive thing. And this happened to be all on the same day, amidst all the CES news, but right after another article was written here showing some unfavorable news for Apple.

I'm not insinuating what the other person said, about having connections or the like, but it's not difficult to see that the articles might have been reactionary and perhaps even defensive. It does seem that Alan has a bias towards Apple, which there's nothing wrong with, as we all have our preferences. But the articles do seem a tad suspicious, given all the circumstances.

Of course, news is news, and all effort is appreciated either way.

posted on 06 Jan 2016, 08:51

35. tbacba (Posts: 98; Member since: 31 Mar 2010)


Well I was serious, but others apparently know more about this than I do. So can you share?

posted on 06 Jan 2016, 16:13

48. Finalflash (Posts: 2791; Member since: 23 Jul 2013)


It's actually quite simple I think. He might seem a bit biased towards Apple because his articles are largely reposts from Apple pro websites like Apple insider and 9to5mac probably because he frequents those sites. Since this site is largely a news aggregation / repost site, that means he has to post a certain number of articles per week. He usually posts whatever interesting thing comes through and and does a post dump at some point in the week to catch up on requirements.

posted on 06 Jan 2016, 19:32

50. tbacba (Posts: 98; Member since: 31 Mar 2010)


Thank you for an actual answer.

posted on 05 Jan 2016, 21:00 9

8. Alan01 (Posts: 357; Member since: 21 Mar 2012)


If you were a real Phone Arena reader, you'd know why that was a ridiculous statement.

Alan F.

That is directed to tbacba, not you Papa Smurf!

posted on 05 Jan 2016, 21:21 1

13. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


I think he's just trying to bait you.

posted on 05 Jan 2016, 21:59 7

17. uzimafioso (Posts: 244; Member since: 15 Jul 2014)


Lol you must know what baiting is :p

posted on 06 Jan 2016, 15:28

47. tbacba (Posts: 98; Member since: 31 Mar 2010)


I wasn't. Just asking what I thought was a legitimate question. Why is that baiting?

posted on 05 Jan 2016, 23:00

21. Dude2014 (Posts: 436; Member since: 12 Feb 2014)


I'm a reader and I know that is true.

posted on 05 Jan 2016, 23:40

23. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


Lol I know. That's why I had to question the user for a second.

posted on 06 Jan 2016, 08:43

34. tbacba (Posts: 98; Member since: 31 Mar 2010)


I read Phone Arena all the time, and although the topic may have come up before, I probably missed it. It was a serious question though, so is there a serious answer?

posted on 05 Jan 2016, 22:04 1

19. phonefanboy (Posts: 11; Member since: 06 Oct 2011)


Preach!

posted on 06 Jan 2016, 03:31

25. engineer-1701d (Posts: 3271; Member since: 13 Mar 2014)


Sounds like I feel threatened to a lawsuit on the analyst and less he retracted or changed what he said already doesn't want anyone in the world to know that Apple's doing bad

posted on 06 Jan 2016, 05:10

29. qwertsun (Posts: 15; Member since: 02 Dec 2015)


Look PA, we are here to laugh at Apple's cut in supply chain, not here to see your iPA's iPhone review. Thanks.

posted on 05 Jan 2016, 20:51 12

2. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


He's just an Apple fanboy. That's all.

posted on 05 Jan 2016, 20:52 3

4. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


You know it's cute to see trolling on an Apple article.

posted on 05 Jan 2016, 20:53 9

5. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


The way you troll Samsung and other articles?

posted on 05 Jan 2016, 20:54 1

6. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


Troll Samsung? Are you sure you're replying to the right person? Lmao.

posted on 05 Jan 2016, 20:57 8

7. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


My bad. That was LG you were trolling. When someone else mentioned LG was better than Samsung. A troll is a troll and you are definitely a troll.

posted on 05 Jan 2016, 21:20

12. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


Pot calling the kettle black.

posted on 06 Jan 2016, 03:52 2

26. meanestgenius (Posts: 10207; Member since: 28 May 2014)


And you would know about that, considering you're the biggest hypocrite on this site.

posted on 06 Jan 2016, 12:30

40. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


You're one to talk about someone being a hypocrite.

posted on 06 Jan 2016, 14:46

44. meanestgenius (Posts: 10207; Member since: 28 May 2014)


I can call you a hypocrite because you are one. Everyone on this site knows this.

posted on 06 Jan 2016, 20:09

51. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


I can call you one because you are one. See I can do it too.

posted on 06 Jan 2016, 21:48

57. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Except I'm telling the truth, and have links to prove it. The only "proof" you have that I "troll" is me admitting to trolling the trolls. That would be YOU. Besides, it's common knowledge that you're the biggest troll on PA.

posted on 08 Jan 2016, 17:08

60. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


And I have a link proving that you have multiple aliases, as said so by yourself. You give people who legitimately have an interest in Blackberry devices a bad name.

posted on 08 Jan 2016, 17:18

64. meanestgenius (Posts: 10207; Member since: 28 May 2014)


You that link where some dude said he was me? Lmao! I guess your dumba** will believe anything that's on the Internet. I also know that you're behind the faux account of me, in an effort to get back at me because you believe I was behind your faux account. And i can guarantee you that not one BlackBerry user or anyone interested in BlackBerry devices believes that BS about me giving them a bad name. That's your childish, immature hang up. But you definitely give iOS users a bad name with your incessant trolling of anything not Apple.

posted on 05 Jan 2016, 23:39

22. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


You mean someone saying LG is the best on a Samsung article? That's not trolling to you? Lmao please stop before my IQ drops.

posted on 06 Jan 2016, 03:54 2

28. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Well, you have been known to troll a Sony article...or 100. Facts are facts, Papa.

posted on 06 Jan 2016, 09:32

36. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


Sony? Maybe. LG? And especially Samsung? Lol.

posted on 06 Jan 2016, 10:57

38. meanestgenius (Posts: 10207; Member since: 28 May 2014)


No maybe about it, Smurf. You've trolled Sony hard in the past, an still troll them now, albeit to a lesser extent. As BobbyD said, a troll is a troll, and you're definitely a troll.

posted on 06 Jan 2016, 12:38

43. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


Exhibit A. Pot calling the kettle black.

posted on 06 Jan 2016, 14:50 1

45. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Pure BS, coming from you. I can post numerous links when you've actually trolled. You can't do the same for me. If you can, then do it. Unless, of course, you want to count when I troll the trolls like you. I freely admit to that. Let's see if you'll own up to your trolling. I'm waiting...

posted on 06 Jan 2016, 20:20

52. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


http://www.phonearena.com/news/BBM-retains-more-users-than-most-other-Android-messaging-apps_id68065

http://utbblogs.com/the-tide-turning-americans-want-a-blackberry-passport/

http://www.phonearena.com/news/Apples-shares-finish-in-the-red-for-the-first-time-since-2008_id77056

And let's not forget your doppelganger accounts.

posted on 06 Jan 2016, 21:46

56. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


Doppleganger accounts? Sure thing Jake.Lee and WackyWahu.

posted on 06 Jan 2016, 21:58

58. meanestgenius (Posts: 10207; Member since: 28 May 2014)


http://www.phonearena.com/news/Apples-shares-finish-in-the-red-for-the-first-time-since-2008_id77056/comments

http://www.phonearena.com/news/Suit-seeks-to-block-sales-of-the-Apple-Watch-claims-Apple-tricked-company-to-obtain-technology_id77142

http://www.phonearena.com/news/Analysts-say-supply-chain-order-cuts-do-not-mean-demand-is-soft-for-the-Apple-iPhone_id77185/comments

http://www.phonearena.com/news/Deal-Buy-the-LG-V10-from-Verizon-and-get-50-off-the-LG-Tone-Pro-Bluetooth-headset_id77059

http://www.phonearena.com/news/BlackBerry-to-release-one-or-two-new-phones-this-year-both-will-run-on-Android_id77213/comments

All articles in which you've trolled and have been called out for your trolling. And there are TONS more.

And let's not forget those faux accounts you've created.

posted on 08 Jan 2016, 17:09

61. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


How many times have you been banned before you settled on meanestgenius? You are the one who has multiple aliases.

posted on 08 Jan 2016, 17:20

65. meanestgenius (Posts: 10207; Member since: 28 May 2014)


How many of your multiple accounts have been banned before you decided to let them go and just settle on this one and the faux account of me?

posted on 06 Jan 2016, 07:01 2

31. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


You're IQ can't drop any further. So you have nothing to worry about there.

posted on 06 Jan 2016, 09:33

37. PapaSmurf (Posts: 10439; Member since: 14 May 2012)


Funny how my IQ can't drop any farther yet you can't even get facts correct saying I troll Samsung. Yeah okay.

posted on 06 Jan 2016, 12:08

39. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


And yet you're still a troll. You trolled in that Samsung article when you came at dude for stating his preference. You troll Sony articles as well. You're just trying to keep it on the low now. And yes, it's true, your IQ really can't get any lower. These are all undisputed facts.

As a matter of fact, you attempted to troll me once when I was putting Mxy in his place. Came running to his defense. Got shut down then too.

posted on 06 Jan 2016, 07:03

32. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


And don't you troll Sony articles? Stop acting as if you don't troll Smurf. Everyone knows you do. Stop it.

posted on 05 Jan 2016, 21:22

14. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


Well he's a hypocrite.

posted on 05 Jan 2016, 21:35 4

15. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


And like clockwork... The biggest troll on PA shows up! So predictable Michelle. Not enough BlackBerry and Android articles for you to troll today? Or are you just greedy and want to swing from my sack along with MG's?

posted on 06 Jan 2016, 03:53 1

27. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Lol, he's just greedy. And predictably so.

posted on 06 Jan 2016, 12:34

41. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


Hey man I don't care what you and meanest do in your free times. Not my fault I told the truth.

posted on 06 Jan 2016, 14:51

46. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Stop lying. You're greedy for the sack.

posted on 06 Jan 2016, 20:42

53. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


That's your area of expertise.

posted on 06 Jan 2016, 22:02

59. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Considering who your favorite CEO is, I'd say it's definitely your are of expertise. Own it. It's all you, Michelle.

posted on 08 Jan 2016, 17:11

62. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


A CEO of one of the wealthiest companies in the world who has more cash reserves than the United States and several countries in addition to the many stock options, I wouldn't complain even if it was true. But I'll leave that kind of stuff to you and your mad worship of Blackberry and King Chen the Hen.

posted on 08 Jan 2016, 17:24

66. meanestgenius (Posts: 10207; Member since: 28 May 2014)


Lmao! Typical iFan response. Talk about Apples wealth as if it's yours when getting slaughtered in the comments section. You wouldn't complain because there is no denying your love of the sack.

posted on 06 Jan 2016, 21:43

55. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


Stop talking about you and smurf Michelle. No one wants those details.

And you've never told the truth in your life Michelle.

posted on 08 Jan 2016, 17:12

63. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


I don't want to hear about your roleplay fantasies with meanest. I mean, dressing up as a smurf? Lol ok, that's a little too much information for me.

posted on 08 Jan 2016, 17:26

67. meanestgenius (Posts: 10207; Member since: 28 May 2014)


More like that's your role playing fantasies of you and that blow up doll you call a girlfriend.

posted on 05 Jan 2016, 22:32

20. TechieXP1969 (Posts: 8839; Member since: 25 Sep 2013)


So are you.

posted on 06 Jan 2016, 12:35

42. Mxyzptlk (Posts: 11853; Member since: 21 Apr 2012)


And we have techie on board. President of Hypocritia.

posted on 06 Jan 2016, 21:42

54. BobbyDigital (Posts: 1848; Member since: 29 May 2014)


Says the supreme troll ruler of hypocitia.

posted on 05 Jan 2016, 21:00 3

9. keithtae (Posts: 341; Member since: 25 Mar 2015)


Told ya. Heaps more posts to come when apple stock price is down. Alan F. You're the man

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