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

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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42 Comments

1. jcpwn2004

Posts: 314; Member since: Jan 18, 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.

2. mas11

Posts: 1034; Member since: Mar 30, 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"

4. JoooIvvvo

Posts: 3; Member since: Jan 13, 2013

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

31. xtplnet

Posts: 61; Member since: Mar 03, 2012

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

9. SamsungFan

Posts: 201; Member since: Apr 16, 2012

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

17. MeoCao unregistered

And Sony, LG, Motorola... Sony has good chance with Xperia Z and only Sony can make Android 2 horse race

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

24. Hunt3rj2

Posts: 396; Member since: Nov 11, 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...

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

33. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

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

34. Robottoe

Posts: 12; Member since: May 21, 2012

most have already migrated from iOS to android...

36. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

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

3. JoooIvvvo

Posts: 3; Member since: Jan 13, 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!!!!

7. MeoCao unregistered

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

35. PhenomFaz

Posts: 1236; Member since: Sep 26, 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!

8. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

10. caustictoast

Posts: 31; Member since: Aug 07, 2012

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

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.

19. pholocity

Posts: 10; Member since: Jan 13, 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

12. phljcnth

Posts: 556; Member since: Apr 30, 2012

Your iPhone is not a car. Get over it!

45. Droiddoes unregistered

Exactly, it's barely even a phone! BADOOM - TSSH

46. roscuthiii

Posts: 2383; Member since: Jul 18, 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.

6. MrJerry

Posts: 403; Member since: Oct 05, 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

26. rusticguy

Posts: 2828; Member since: Aug 11, 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?

28. JoooIvvvo

Posts: 3; Member since: Jan 13, 2013

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

11. phljcnth

Posts: 556; Member since: Apr 30, 2012

I knew this would come. *evil laugh*

13. Friendlysky

Posts: 54; Member since: Jul 04, 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.

15. reyenrique

Posts: 99; Member since: Oct 07, 2012

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

27. rusticguy

Posts: 2828; Member since: Aug 11, 2012

it's like Beetle or H Davidson :)

16. cGmC11

Posts: 152; Member since: Apr 02, 2012

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

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