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Apple Slashes iPhone 5 Part Orders Due to Weak Demand

The Wall Street Journal reports that Apple has slashed component orders for the iPhone 5 this quarter, responding to weaker-than-expected demand.
Apple's orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.

The Cupertino, Calif., company has also cut orders for components other than screens, according to one of the people.

Apple notified the suppliers of the order cut last month, the people said.
There have been reports that Apple is looking to launch its next-generation iPhone in the middle of this year as part of a broader effort to shorten its product update cycles. Apple is reportedly also toying with other changes such as a cheaper version of the iPhone in order to help the company slow the momentum of Android and its leading manufacturers Samsung.


It is not unusual for demand, and thus Apple's component orders, to wane in the lead-up to hardware updates, but the iPhone 5 is just four months old, and the slashing of production at this stage of the device's lifecycle is sure to cause concern for the company, its investors, and others closely watching Apple's performance.

Related roundups: iPhone 5c, iPhone 5s, iPhone 6

Top Rated Comments

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21 months ago
Can thank a stale design and os for this.
Rating: 158 Votes
21 months ago
Stock manipulation at it's finest, once again. :rolleyes:
Rating: 77 Votes
21 months ago
I need to dump the stock. I don't see it rebounding to $700/share.
Rating: 57 Votes
21 months ago
I'm not surprised.

I usually try to judge these things based on anecdotal evidence, and from that perspective the iPhone 5 is a flop. Of course it depends on my location, place of work and a billion other factors, but in a modern busy city you see a lot of random people with their phones and occasionally you notice one.

I don't tend to see a lot of iPhone 5s around.

Personally, I'm not tempted to buy one, either. The iPhone today does basically the same things the iPhone 4 did, just faster. The iPhone 4 was as big of a shake-up as the iPhone's had since launch (and even then it was a new case and faster internals).

There hasn't been anything revolutionary. Nothing that really pushes the device to the next level or provides something radically different. NFC could do that, but in that case it's less about physically sticking it in to the phone and more about building up the infrastructure; unfortunately Apple doesn't seem to be doing anything there, and they don't seem to be doing anything else either.

As always, would love to be wrong, hope they have something really great. Unfortunately when you build your brand on innovative ideas, people expect you to keep delivering. When those ideas run out your brand will just lose steam.
Rating: 53 Votes
21 months ago
This isn't really a surprise ...

iPhone 5S rumors (which NEEDS to happen, annual hardware updates for your NUMBER ONE product line is inexcusable), iPhone 5 initial issues with scuffing and Wifi, iOS 6 being stale and the maps fiasco, not to mention lack of jailbreak.

I LOVE Apple products, but ever since the iPhone 4S's release I've started to get bored and watch Apple be surpassed by even WP8 in some areas.

They need to lock down contracts in China and other areas of the world. They really only dominate the US market.

And the WSJ doesn't know this for sure, I'll wait to see the financials for the quarter before making judgement. Isn't it common for post-holiday shipment cuts? People surely don't buy in January like they do in December.
Rating: 50 Votes
21 months ago
Doesn't surprise me. Nothing made me covet iPhone 5. iOS is getting stale in my opinion. The products are becoming a bit boring and predictable lately. I love Apple, but it's just how I feel.
Rating: 41 Votes
21 months ago
This worries me a little...
Rating: 39 Votes
21 months ago
Only the TINIEST segment of the buying public seeks a burst of "excitement" every single year from their phone. I'm one of them... so are many tech forum-goers of course.

But what most people want is the best phone possible, not the maximum amount of change for change's own sake. Change for change's sake is marketing--and that's not what I want driving the design of my phone.

The iPhone 5 would be "more exciting"--to that tiny group of people--if they changed a bunch of superficial stuff. Instead, it's merely far and away the best handheld device that has ever existed, with none of the absolute dealbreaker problems of Android*

* Poorer selection top-quality apps

* No FULL restore of everything when you get a warranty swap or upgrade to a new device

* Malware galore; even safe apps can harm your performance and battery life

* Open source "freedom" that means freedom for the carriers... not for you

* Speed, battery-life and ease of use still second best (despite certain specific features being nice on ANY platform, the big picture is still nicest on iOS)

* Worst of all: devices abandoned (no more updates) LONG before you even finish paying for them!

Android is fine for some... but it comes with HUGE compromises. The compromises in iOS are FAR fewer and smaller for me.
Rating: 36 Votes
21 months ago
I have a perfectly good iP4 and I'm out of contract w/ AT&T, but the iP5 really didn't do much for me... at least no where near enough to drop $299 and re-up my contract. I've been considering picking up a Google Nexus 4 ($199 w/ No Contract) to entertain me until the next "must have" iPhone (I actually like Jelly Bean on my Nexus7).
Rating: 29 Votes
21 months ago

Not surprised either. The iPhone 5 was the first time I really didn't see any good reason to upgrade from my iPhone 4S. In fact, iOS 6 was the first time I didn't see a good reason to upgrade from 5.1.1.

I got so bored I bought a Nexus 4. The iPhone 5S or 6 better come quick and it better be exciting or I'll completely lose interest in Apple phones.

Still have my iPad Mini and iMac though. I still think in the tablet and desktop space nothing else compares or even comes close. But phones are moving really, really quick - and iPhone is starting to fall behind IMHO.

Either that or I'm just looking for something new. I've had all the iPhones since the original... so by now it's too familiar for me.

You are 100% correct as far as I'm concerned. I honestly can't see a good reason to buy an iPhone over a top of the line Android phone. Unless you like smallish, non innovative devices, the iPhone hasn't much to offer.
Rating: 28 Votes

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