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Apple cuts iPhone 5 display orders in half, possibly on weak demand

Posted: , by Michael H.

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Apple cuts iPhone 5 display orders in half, possibly on weak demand
We've heard that the iPad could be selling quite well, and Q4 saw Apple take about 50% of the US smartphone market, at least in part based on the success of the iPhone 5, but it seems the iPhone 5 may not be selling quite as well these days as Apple had expected. And, word has it that because of the weak demand, Apple has cut orders for iPhone 5 displays in half.

The news comes from the Wall Street Journal and Nikkei, which separately have reported the cut in orders. The definite part of the report is that during the January to March period, Apple has cut orders for displays in half, according to sources. There is one source which claims the cuts extend beyond displays to other parts, but that hasn't yet been confirmed. 

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. Apple users, especially casual users who don't pay attention to rumors, have been used to a yearly cycle, so until there is more definite word that there will be a new iPhone in June, there's no reason to expect sales to drop as they normally would before a new release. It seems more likely that sales demand has been lower than expected, which led to the cut, but we'll find out when the real numbers come out. 

source: WSJ (subscription required) & Nikkei via The Verge

46 Comments
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posted on 13 Jan 2013, 22:23 38

1. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)


Not that surprising, the iphone is starting to get dated. It's not cool anymore since everyone has one. Apple needs to add some variety to the design & os.

posted on 13 Jan 2013, 22:28 23

2. mas11 (Posts: 1028; Member since: 30 Mar 2012)


Exactly, the iPhone 5 lacks some key modern features such as NFC and an HD display. Apple needs a radical redesign and larger displays 4" is too small when most other high end displays are approaching and surpassing 5"

posted on 13 Jan 2013, 22:30 16

4. JoooIvvvo (Posts: 3; Member since: 13 Jan 2013)


and SIZE.
SIZE DOES MATTER.
for those who say SIZE DOES NOT MATTER is a liar

posted on 14 Jan 2013, 02:33

31. xtplnet (Posts: 39; Member since: 03 Mar 2012)


true man ..It will be great to have 5 inch Retina display iPhone with ios 7 and 13 Mega pixal camera !!

posted on 13 Jan 2013, 22:54 9

9. SamsungFan (Posts: 201; Member since: 16 Apr 2012)


Now it's time for Samsung. ....

posted on 13 Jan 2013, 23:37 10

17. MeoCao (unregistered)


And Sony, LG, Motorola...

Sony has good chance with Xperia Z and only Sony can make Android 2 horse race

posted on 14 Jan 2013, 02:36 6

32. thelegend6657 (unregistered)


Samsung phones are getting boring , they are almost the same . Give me a Sony / HTC / Lumia instead .
PS : I owns several Apple and Samsung products

posted on 14 Jan 2013, 00:46 2

24. Hunt3rj2 (Posts: 396; Member since: 11 Nov 2011)


NFC, sure. But HD display is a pointless word. Apple has consistently had the best displays for color calibration and they have consistently hit the same PPI range as other flagship devices. Larger phones might make more sense, but a lot of people want a smaller one too. Maybe an iPhone 5XLS and an iPhone 5S is in order...

posted on 13 Jan 2013, 22:32 11

5. MeoCao (unregistered)


Weak demand for sure, the widespread iPhone 5 discounts showed that. The strength for iOS now is iTunes and AppStore, not the iPhone itself. But Google PlayStore can now rival them and JB is way better OS.

In hardware beside advantage in screen size. Android took initiative from Apple by releasing much better than Retina phones and tablets. And HTC and Sony phones are better built than iPhone.

Expect iOS marketshare to shrink substantially this year

posted on 14 Jan 2013, 02:42 2

33. Nathan_ingx (Posts: 2999; Member since: 07 Mar 2012)


Darn! Where are all the hardcore ifans when we need them most!! :D

posted on 14 Jan 2013, 02:54 4

34. Robottoe (Posts: 12; Member since: 21 May 2012)


most have already migrated from iOS to android...

posted on 14 Jan 2013, 03:06 4

36. Nathan_ingx (Posts: 2999; Member since: 07 Mar 2012)


Yup...i can see that somehow. :)

posted on 14 Jan 2013, 00:03 9

21. Bernoulli (Posts: 1437; Member since: 01 Sep 2012)


Don't forget those lawsuits, everyone is sick of supporting a greedy company that steals inventions and then claims is theirs

posted on 14 Jan 2013, 11:53 3

43. SuperMaoriBro (Posts: 268; Member since: 23 Jun 2012)


they claim certain shapes as theirs as well

posted on 13 Jan 2013, 22:29 16

3. JoooIvvvo (Posts: 3; Member since: 13 Jan 2013)


FIRE JOHN IVY!!!
That guy is LAME....
Same model over and over for 2G, 3G, 3GS, 4, 4S, 5....
not to mention ipod touch....

1 success did not make Apple's Little Johny into GOD STATUS!!!!

posted on 13 Jan 2013, 22:44 16

7. MeoCao (unregistered)


Apple takes customers for granted, and they have to pay for that.

posted on 14 Jan 2013, 03:05 3

35. PhenomFaz (Posts: 1064; Member since: 26 Sep 2012)


Its about time Apple got put in its place. I mean the company has been taking its customers for a ride for the past couple of years with almost no product enhancements whatsoever to speak of...and people I mean REAL product enhancements not some claim at an Apple conference stating that the latest updates contain 200 new features and when people are asked they hardly know two!

Time for Apple to step up or get the heck out of the way!

posted on 13 Jan 2013, 22:47 3

8. RaKithAPeiRiZ (Posts: 1316; Member since: 29 Dec 2011)


its kind of like how Porsche has never changed its design for 40 years ,

posted on 13 Jan 2013, 22:55 14

10. caustictoast (Posts: 26; Member since: 07 Aug 2012)


Yes but Porsche's design is timeless. Technology changes rapidly.

posted on 13 Jan 2013, 23:13 11

14. MeoCao (unregistered)


Porsche has many designs for customers to choose, they even have SUV as well.

It's take it or leave it with Apple.

posted on 13 Jan 2013, 23:46 3

19. pholocity (Posts: 10; Member since: 13 Jan 2013)


Remember Henry Ford? You can have any color you want as long as it's black. Same with Apple's philosophy, black or white that's it. 4s and 4 didnt look any different to the untrained eye. If the 5S comes out there probably wont be any physical differences so it all looks the same. People like variety

posted on 13 Jan 2013, 22:59 12

12. phljcnth (Posts: 259; Member since: 30 Apr 2012)


Your iPhone is not a car. Get over it!

posted on 14 Jan 2013, 00:06 5

22. Bernoulli (Posts: 1437; Member since: 01 Sep 2012)


Lol my mum picks on people that use siri, she says, "oh you tell it you're hungry, is it going to spit out a burger now? "

posted on 14 Jan 2013, 14:35

45. Droiddoes (unregistered)


Exactly, it's barely even a phone!

BADOOM - TSSH

posted on 14 Jan 2013, 20:32 1

46. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


Porsche also doesn't tell people that they can only drive at a max speed of 100km/hour, and only in 3rd gear.

Porsche also doesn't sue other companies for having round tires.

posted on 13 Jan 2013, 22:40 12

6. MrJerry (Posts: 392; Member since: 05 Oct 2012)


I will be so glad to hear when Apple announces the excuse for their larger display than 4" in the future..

Well, most likely "another iperfect size 4.3 or 4.5? lol

posted on 14 Jan 2013, 00:07 6

23. Bernoulli (Posts: 1437; Member since: 01 Sep 2012)


And watch them portray that as innovation and people fall for it lol

posted on 14 Jan 2013, 01:28 4

26. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


4.95 or 5.45 as they will not pick the already done sizes going by their history ... they have to do it different to call it innovation and playing on odd sizez is the only innovation left for them as of now besides running to USPTO. But i am wondering how much of a cost bump comes with that 25% size bump because the manufacturing cost is bound to go up by 15% and since apple want 200-300% margin the end user price may go up by 40% which press will go all out to defend left right and center. So how much would the 5.45inch "iPhad" cost?

posted on 14 Jan 2013, 02:03 2

28. JoooIvvvo (Posts: 3; Member since: 13 Jan 2013)


Maybe it's time for apple to introduce the ROUND handphone or iFreesBee.
a phone you can throw to play with your dog.

posted on 13 Jan 2013, 22:56 12

11. phljcnth (Posts: 259; Member since: 30 Apr 2012)


I knew this would come. *evil laugh*

posted on 13 Jan 2013, 23:00 5

13. Friendlysky (Posts: 54; Member since: 04 Jul 2012)


Times has come ! people starting relized who is better now! This is what happen when you're focus on others affair too much instead focus develope your owning products better than them.

posted on 13 Jan 2013, 23:22 3

15. reyenrique (Posts: 85; Member since: 07 Oct 2012)


apple phones is a porsche u mean is a fiat 500 or better more like ford model T

posted on 14 Jan 2013, 01:29

27. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


it's like Beetle or H Davidson :)

posted on 13 Jan 2013, 23:32 3

16. cGmC11 (Posts: 109; Member since: 02 Apr 2012)


Users of the iPhone change your mind after see last week the stunning Sony Xperia Z!

posted on 13 Jan 2013, 23:44 3

18. jove39 (Posts: 1264; Member since: 18 Oct 2011)


Just about time...apple realized 4" is gonna cut anymore...time for larger iPhone

posted on 14 Jan 2013, 00:01 3

20. Shino (Posts: 185; Member since: 23 Jul 2012)


Oh, dear! PH, you have become nothing, but a local gossip corner! By the way, I have a neigbour, whose friend has a husband who works at Wall Street and he heard that PA have completely f...ed proffesional approach and are now hiring monkeys, just to see if they do better that the current "experts" they have. :)

posted on 14 Jan 2013, 01:17 5

25. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Iconic Phone or Ironic Phone? It needs a rethink :)

posted on 14 Jan 2013, 02:23

29. TechDork (Posts: 215; Member since: 10 May 2010)


The 4" screen is fine, it just need to be widened out instead of just made taller. Eh, I don't know...strip the iPhone down & re-design it from the bottom up.

posted on 14 Jan 2013, 02:33

30. thelegend6657 (unregistered)


I don't want it to be wider , I love the 16:9 aspect ratio of the iPhone 5 and most android handsets that packs HD screen

posted on 14 Jan 2013, 03:14

37. amozhi (Posts: 96; Member since: 23 Oct 2012)


Probably Apple is getting ready to release iPhone 5S with iOS 6.1. Anyways apple has to focus on innovation.

posted on 14 Jan 2013, 06:37

38. jsdechavez (Posts: 701; Member since: 20 Jul 2012)


I bet my ten cents that the next iPhone would bring this innovation: multi-color choices for the back plate!!! Lame. Lame. Lame. omg lol

posted on 14 Jan 2013, 06:46

39. Bozzor (Posts: 108; Member since: 02 May 2012)


Just remember, this could be misreading data: if there has been a 50% cut for parts for the iPhone 5 other than the screen, then that certainly will be bad news. But...if there is no corresponding cut for other parts, then what does that mean?

Another screen supplier? Anyone remember what Apple is doing with Sharp and its breakthrough IGZO technology?

posted on 14 Jan 2013, 11:28

40. pholocity (Posts: 10; Member since: 13 Jan 2013)


according to the WSJ article other materials have been reduced as well. Other stock prices (vendors along the supply chain were down this morning as well)

posted on 14 Jan 2013, 11:42

41. yougotkilled1 (Posts: 167; Member since: 27 Apr 2011)


The next iPhone will be a complete bust if ios stays the same. No changes to that in the past 5-6 years is going to kill apple.

posted on 14 Jan 2013, 11:52

42. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


All changes that can come is Xeroxing Android world with an apple stamp.

posted on 14 Jan 2013, 14:32

44. Droiddoes (unregistered)


michael h apple article, nothing to see here folks

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