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

44. Droiddoes unregistered

michael h apple article, nothing to see here folks

41. yougotkilled1

Posts: 167; Member since: Apr 27, 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.

42. rusticguy

Posts: 2828; Member since: Aug 11, 2012

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

39. Bozzor

Posts: 248; Member since: May 02, 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?

40. pholocity

Posts: 10; Member since: Jan 13, 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)

38. jsdechavez

Posts: 818; Member since: Jul 20, 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

37. amozhi

Posts: 131; Member since: Oct 23, 2012

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

29. TechDork

Posts: 405; Member since: May 10, 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.

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

25. rusticguy

Posts: 2828; Member since: Aug 11, 2012

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

20. Shino

Posts: 196; Member since: Jul 23, 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. :)

18. jove39

Posts: 2153; Member since: Oct 18, 2011

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

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!

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 :)

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.

11. phljcnth

Posts: 567; Member since: Apr 30, 2012

I knew this would come. *evil laugh*

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.

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: 567; 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.

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