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

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.


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

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67 Comments

1. tbacba

Posts: 134; Member since: Mar 31, 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?

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

You can not be serious.

24. TheWeasel

Posts: 403; Member since: Dec 26, 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.

35. tbacba

Posts: 134; Member since: Mar 31, 2010

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

48. Finalflash

Posts: 4063; Member since: Jul 23, 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.

50. tbacba

Posts: 134; Member since: Mar 31, 2010

Thank you for an actual answer.

8. Alan01

Posts: 644; Member since: Mar 21, 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!

13. Mxyzptlk unregistered

I think he's just trying to bait you.

17. uzimafioso

Posts: 469; Member since: Jul 15, 2014

Lol you must know what baiting is :p

47. tbacba

Posts: 134; Member since: Mar 31, 2010

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

21. Dude2014

Posts: 448; Member since: Feb 12, 2014

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

23. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

34. tbacba

Posts: 134; Member since: Mar 31, 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?

19. phonefanboy

Posts: 51; Member since: Oct 06, 2011

Preach!

25. engineer-1701d unregistered

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

29. qwertsun

Posts: 42; Member since: Dec 02, 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.

2. BobbyDigital

Posts: 2125; Member since: May 29, 2014

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

4. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

5. BobbyDigital

Posts: 2125; Member since: May 29, 2014

The way you troll Samsung and other articles?

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

7. BobbyDigital

Posts: 2125; Member since: May 29, 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.

12. Mxyzptlk unregistered

Pot calling the kettle black.

26. meanestgenius

Posts: 22498; Member since: May 28, 2014

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

40. Mxyzptlk unregistered

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

44. meanestgenius

Posts: 22498; Member since: May 28, 2014

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

51. Mxyzptlk unregistered

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

57. meanestgenius

Posts: 22498; Member since: May 28, 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.

60. Mxyzptlk unregistered

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.

64. meanestgenius

Posts: 22498; Member since: May 28, 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.

22. PapaSmurf

Posts: 10457; Member since: May 14, 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.

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