Apple Cutting Fourth Quarter iPhone Component Orders?

iphone 4s images black white
Digitimes shares a report from Taiwan's Commercial Times claiming that Apple has cut orders for iPhone components during the fourth quarter by 10-15%. The report claims that sales of the device have slowed significantly since the pre-order and launch phase and that shortages of a few components have also been impacting overall production. iPad production may also be seeing some cutbacks.

According to a Chinese-language Commercial Times report, Apple is likely to adjust downward its shipments of iPhones and iPads from related suppliers by 10-15% in the fourth quarter.

Related iPhone 4S suppliers including cases and camera lens makers as well as ODM assemblers have received notice from Apple to reduce their shipments for the fourth quarter, but none of them has confirmed the report, the paper said.

Some international IC players have also indicated that their revenues are likely to slide by 10-15% in the fourth quarter due to the shipment adjustments for iPhone 4S.

Sales of the iPhone 4S hit four million units on its opening weekend last month, significantly higher than the iPhone 4's debut of 1.7 million units last year.

Apple has moved quickly to expand iPhone 4S availability internationally, and the company has continued to experience tight supplies of the device at its own retail stores. But if the reports out of Taiwan are to be believed, at least a portion of that crunch may be due to lighter-than-anticipated production in the face of component shortages and a targeted cutback by Apple.

Update: RBC Capital Markets analyst Mike Abramsky notes in a new research report that the suggestion of weaker-than-expected sales does not mesh with evidence of sell-through from carriers and other points-of-sale. He suggests that Apple may simply be pulling back slightly from an initial over-ordering of components, something the company has reportedly engaged in at times in order to gain the most favorable pricing possible.

Related Forum: iPhone

Top Rated Comments

DotCom2 Avatar
145 months ago
Every time I see a report that starts with "Digitimes" I know it means nothing!
These people have consistently gotten things way wrong and have no credability! It's like they almost start bad rumors on PURPOSE!
FUHGEDDABOUIT!
Score: 7 Votes (Like | Disagree)
alent1234 Avatar
145 months ago
I knew that once the hype of the 4S release was over sales would slowly drop.. People want the iphone 5 and are willing to wait two or three quarters for it; ) I for myself have no interest in the 4/4S, too thick and bulky.


i'm waiting for the iphone 7 myself
Score: 3 Votes (Like | Disagree)
Buckeyestar Avatar
145 months ago
This is a ludicrous claim considering people are still experiencing difficulty in obtaining a phone and many regions still haven't had their launch yet.
Score: 3 Votes (Like | Disagree)
*LTD* Avatar
145 months ago
http://www.macobserver.com/tmo/article/analyst_iphone_order_cutback_Reports_are_wrong/

UBS: Rumors of iPhone order cutback are wrong

“Reports out of China claim Apple is cutting back on iPhone 4S parts orders because consumer demand is dropping off,” Jeff Gamet reports for The Mac Observer.

“‘Those reports are wrong, according to UBS analyst Maynard Um, and his checks show iPhone 4S demand is still going strong,’” Gamet reports. “We believe the Commercial Times report is without merit and believe iPhone 4S demand is not an issue,’ Mr. Um said. ‘Our recent checks indicate that iPhone 4S is still selling out and experiencing 1-2 week waits for online orders with demand also driven by accelerated carrier/country launches.’”

Gamet reports, “He added that parts suppliers ‘have very recently indicated strength into [the calendar fourth quarter], which would be counter to weakening demand.’”
Score: 2 Votes (Like | Disagree)
lilo777 Avatar
145 months ago
http://www.macobserver.com/tmo/article/analyst_iphone_order_cutback_Reports_are_wrong/

UBS: Rumors of iPhone order cutback are wrong

“Reports out of China claim Apple is cutting back on iPhone 4S parts orders because consumer demand is dropping off,” Jeff Gamet reports for The Mac Observer.

“‘Those reports are wrong, according to UBS analyst Maynard Um, and his checks show iPhone 4S demand is still going strong,’” Gamet reports. “We believe the Commercial Times report is without merit and believe iPhone 4S demand is not an issue,’ Mr. Um said. ‘Our recent checks indicate that iPhone 4S is still selling out and experiencing 1-2 week waits for online orders with demand also driven by accelerated carrier/country launches.’”

Gamet reports, “He added that parts suppliers ‘have very recently indicated strength into [the calendar fourth quarter], which would be counter to weakening demand.’”

And here is a the latest news article from Digitimes:

Amazon increases Kindle Fire orders

Yenting Chen and Rebecca Kuo, Taipei; Joseph Tsai, DIGITIMES [Thursday 10 November 2011]

Amazon has recently increased its Kindle Fire orders to more than five million units before the end of 2011 as pre-orders for the machine remain strong, according to sources from upstream component suppliers.

Amazon already raised its order volume once in the middle of the third quarter, up from 3.5 million units originally to four million units.

Since the company estimates that demand for Kindle Fire will become even stronger at the end of 2011, Amazon has further increased its orders. Amazon's upstream partners including Wintek, Chunghwa Picture Tubes (CPT), LG Display, Ilitek, Quanta Computer, Aces Connectors and Wah Hong Industrial will all benefit from the short-term orders.
Score: 1 Votes (Like | Disagree)
vitzr Avatar
145 months ago
I find a thread like this the most entertaining of all. Every Apple apologist, fanboy, and excuse maker weighs in with the best responses of all. :) :) :)



I really enjoy my Apple products, but this one is just a phone :)
Score: 1 Votes (Like | Disagree)

Popular Stories

Emergency SOS via Satellite iPhone YT

Apple's iPhone 14 Emergency SOS via Satellite Feature Saves Stranded Man in Alaska

Thursday December 1, 2022 4:37 pm PST by
With the launch of iOS 16.1, Apple rolled out a Emergency SOS via Satellite, which is designed to allow iPhone 14 owners to contact emergency services using satellite connectivity when no cellular or WiFi connection is available. The feature was put to the test in Alaska today, when a man became stranded in a rural area. In the early hours of the morning on December 1, Alaska State Troopers ...
iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
iOS 16

When Will iOS 16.2 Be Released?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
iPad 10 Battery Pull Tabs

iPad 10 Teardown Reveals Why Device Isn't Compatible With Apple Pencil 2

Thursday December 1, 2022 10:48 am PST by
Do-it-yourself repair website iFixit today shared a video teardown of Apple's new 10th-generation iPad, providing a closer look inside the tablet and revealing why the device lacks support for the second-generation Apple Pencil. The teardown reveals the internal layout of the iPad, including its two-cell 7,606 mAh battery, logic board with the A14 Bionic chip, and more. As suspected, the...
android apple fix rcs

Google Again Criticizes Apple for Not Adopting RCS for Messages App: 'Their Texting is Stuck in the 1990s'

Friday December 2, 2022 10:54 am PST by
Google is continuing on with its attempt to convince Apple to adopt the RCS messaging standard, publishing a new "it's time for RCS" blog post. Promoted heavily by Google, RCS or Rich Communication Services is a messaging standard that is designed to replace the current SMS messaging standard. It provides support for higher resolution photos and videos, audio messages, and bigger file sizes, ...
ios 16 2 beta notifiation center

PSA: Older Notifications No Longer Hidden in Notification Center in iOS 16.2 Beta 4

Friday December 2, 2022 5:23 am PST by
In a small but significant change to the way the Notification Center works in the latest iOS 16.2 beta, older notifications are now shown by default without having to swipe up. In the current release as well as earlier versions of iOS 16, users do not automatically see older notifications in the Notification Center like they did in iOS 15, and instead must manually swipe up from the middle...
lastpass

LastPass Hacked for Second Time This Year

Friday December 2, 2022 4:04 am PST by
Password management app LastPass says it is investigating a security incident after an "unauthorized party" compromised its systems on Wednesday and gained access to some customer information. The information was stored in a third-party cloud service shared by LastPass and parent company GoTo, said LastPass CEO Karim Toubba in a blog post. Toubba said the hackers used information stolen from ...
Apple Card Savings

Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

Friday December 2, 2022 11:43 am PST by
Goldman Sachs this week updated its Apple Card customer agreement to reflect the credit card's upcoming Daily Cash savings account feature, which was expected to launch with iOS 16.1 but appears to have been delayed. "To enable new ways to use Daily Cash like the upcoming Savings account feature, we are updating the Daily Cash Program section of your Apple Card Customer Agreement," reads an...