WSJ: Apple cutting iPhone orders due to weak demand

According to the WSJ, Apple has begun cutting component orders for the iPhone 5 due to weak demand.

For example, Apple has cut its orders for iPhone 5 displays by 50 percent for the January-to-March quarter, say the sources.

Additionally, the company is slashing orders for other components, as well, letting their suppliers know over the last month.

If accurate, the news is a massive blow for Apple, who was banking on strong iPhone 5 sales to better compete with Samsung in the race for global smartphone dominance.

During the fourth quarter of 2011, Apple had a 23 percent market share of global smartphone shipments. That number fell to 14.6 percent by the Q3 2012. Samsung, on the other hand, rose to 31.3 percent in the quarter thanks to the popularity of their Android workhorses, the Galaxy S III and Galaxy Note II.

Written by: Andre Yoskowitz @ 13 Jan 2013 23:46

PraisesToAllah

Who else smiled when they read this?

14.1.2013 00:03 #1

DVDBack23

Originally posted by PraisesToAllah: Who else smiled when they read this? As I've said for every company in the past who went down the same path...if you stop innovating, sayonara and thanks for the memories.

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14.1.2013 00:17 #2

Justoneguy

WHAT!? You aren't ready to "upgrade" yet!

14.1.2013 02:04 #3

Bigwillyz

Originally posted by PraisesToAllah: Who else smiled when they read this? :-) their cocky asses needed to be taken down a peg. My cell provider sold their soul to get the Iphone and this was bound to happen. Sprint has screwed all their loyal customers because of how much they had to pay to get it and I still resent them for it. Maybe all the mindless drones are finally wising up....... but I doubt it

14.1.2013 02:58 #4

elbald90

Originally posted by PraisesToAllah: Who else smiled when they read this? I did

14.1.2013 13:05 #5

Azuran

I would blame this on market saturation more than lack of innovation. Almost everyone who wants/can afford an iPhone already has one at this point. The product has left growth stage and reached it's maturity stage. Now marketing efforts will be focused on retaining existing customers rather than obtaining new ones or they will increase product differentiation (like a cheaper version of the iPhone)

I, however, still stand behind the fact that Apple has never innovated anything. Jobs was just a marketing genius.

14.1.2013 13:12 #6

SProdigy

Originally posted by Azuran: I would blame this on market saturation more than lack of innovation. Almost everyone who wants/can afford an iPhone already has one at this point. The product has left growth stage and reached it's maturity stage. Especially when the "upgrade" is nothing substantial. They really screwed their normal product life cycle by forcing this lightning connector on people. For those of us that have been with Apple since the iPod and latched onto similar products to stay within their ecosystem, it's a slap in the face.

Why do I want to buy all new peripherals for my household? Oh, there's an adapter? Oh it's $30+! Yeah...

14.1.2013 15:26 #7

buddyleem

Now they will make the screen bigger and sell more this summer.

Hack a bit, invest a bit, work a bit, jerk a bit

14.1.2013 15:38 #8

Frogfart

Lightning connector is highway robbery and the end of my patronage with Apple. Now I love my Galaxy Tab2. All great empires come and go. Bye bye microsoft and bye bye Apple.

14.1.2013 15:43 #9

Notcow

Goood stuff!

14.1.2013 16:17 #10

megadunderhead

actually here is what is causing this.

1. at&t wont let people upgrade to a iphone 5 until there upgrade date which is usually one year after the contract was started which creates less demand because people cannot go to the new phone because at&t wont let them

14.1.2013 16:29 #11

GryphB

I smiled and frowned at the same time. Smiled only to see Apple cut back; frowned when I still see the high prices for the phones not through contract.

14.1.2013 18:32 #12

DVDBack23

Originally posted by Azuran: I would blame this on market saturation more than lack of innovation. Almost everyone who wants/can afford an iPhone already has one at this point. The product has left growth stage and reached it's maturity stage. Now marketing efforts will be focused on retaining existing customers rather than obtaining new ones or they will increase product differentiation (like a cheaper version of the iPhone) No chance this is saturation when the global smartphone market still growing at 60 percent clip year-over-year...

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14.1.2013 20:25 #13

juaneryle

Originally posted by PraisesToAllah: Who else smiled when they read this? I did.

14.1.2013 20:50 #14

juaneryle

Originally posted by PraisesToAllah: Who else smiled when they read this? I did.

14.1.2013 21:12 #15

xtago

Originally posted by DVDBack23: Originally posted by Azuran: I would blame this on market saturation more than lack of innovation. Almost everyone who wants/can afford an iPhone already has one at this point. The product has left growth stage and reached it's maturity stage. Now marketing efforts will be focused on retaining existing customers rather than obtaining new ones or they will increase product differentiation (like a cheaper version of the iPhone) No chance this is saturation when the global smartphone market still growing at 60 percent clip year-over-year...
In the world it might be growing but split the growth across the markets and it'll be a different story, china is currently the big sell to market in the world main reason why you see a 60% growth spurt.

goto the US market where you have around 300 million people owning an iphone and the reason to buy another iphone is completely different.

16.1.2013 02:32 #16

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