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

Posted: , 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

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