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.

iphone5frontback
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 Forum: iPhone

Top Rated Comments

kjs862 Avatar
147 months ago
Can thank a stale design and os for this.
Score: 158 Votes (Like | Disagree)
Lancetx Avatar
147 months ago
Stock manipulation at it's finest, once again. :rolleyes:
Score: 77 Votes (Like | Disagree)
AHDuke99 Avatar
147 months ago
I need to dump the stock. I don't see it rebounding to $700/share.
Score: 57 Votes (Like | Disagree)
Saladinos Avatar
147 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.
Score: 53 Votes (Like | Disagree)
Dwalls90 Avatar
147 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.
Score: 50 Votes (Like | Disagree)
myrtlebee Avatar
147 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.
Score: 41 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Will Add These New Features to Your iPhone

Friday April 12, 2024 11:11 am PDT by
iOS 18 is expected to be the "biggest" update in the iPhone's history. Below, we recap rumored features and changes for the iPhone. iOS 18 is rumored to include new generative AI features for Siri and many apps, and Apple plans to add RCS support to the Messages app for an improved texting experience between iPhones and Android devices. The update is also expected to introduce a more...
iGBA Feature

Game Boy Emulator for iPhone Now Available in App Store Following Rule Change [Removed]

Sunday April 14, 2024 8:06 am PDT by
A week after Apple updated its App Review Guidelines to permit retro game console emulators, a Game Boy emulator for the iPhone called iGBA has appeared in the App Store worldwide. The emulator is already one of the top free apps on the App Store charts. It was not entirely clear if Apple would allow emulators to work with all and any games, but iGBA is able to load any Game Boy ROMs that...
iGBA Feature

Apple Removes Game Boy Emulator iGBA From App Store Due to Spam and Copyright Violations

Sunday April 14, 2024 9:22 pm PDT by
Apple today said it removed Game Boy emulator iGBA from the App Store for violating the company's App Review Guidelines related to spam (section 4.3) and copyright (section 5.2), but it did not provide any specific details. iGBA was a copycat version of developer Riley Testut's open-source GBA4iOS app. The emulator rose to the top of the App Store charts following its release this weekend,...
iOS 18 Siri Integrated Feature

Apple's First AI Features in iOS 18 Reportedly Won't Use Cloud Servers

Sunday April 14, 2024 9:52 am PDT by
Apple's first set of new AI features planned for iOS 18 will not rely on cloud servers at all, according to Bloomberg's Mark Gurman. "As the world awaits Apple's big AI unveiling on June 10, it looks like the initial wave of features will work entirely on device," said Gurman, in the Q&A section of his Power On newsletter today. "That means there's no cloud processing component to the...
new best buy blue

Best Buy Opens Up Sitewide Sale With Record Low Prices on M3 MacBook Air, iPad, and Much More

Saturday April 13, 2024 7:41 am PDT by
Best Buy this weekend has a big sale on Apple MacBooks and iPads, including new all-time low prices on the M3 MacBook Air, alongside the best prices we've ever seen on MacBook Pro, iPad, and more. Some of these deals require a My Best Buy Plus or My Best Buy Total membership, which start at $49.99/year. In addition to exclusive access to select discounts, you'll get free 2-day shipping, an...
m3 mbp space black

M4 Macs Are Expected to Launch in This Order Starting Later This Year

Sunday April 14, 2024 10:40 am PDT by
Bloomberg's Mark Gurman recently reported that the first Macs with M4 series chips will be released later this year, with more models to follow next year. In his Power On newsletter today, Gurman shared a more specific roadmap for these Macs. Here is the order in which Gurman expects the Macs to launch:1. A low-end 14-inch MacBook Pro with the M4, coming around the end of 2024. 2. A 24-inch ...
iOS NES Emulator Bimmy Feature

NES Emulator for iPhone and iPad Now Available on App Store [Removed]

Tuesday April 16, 2024 11:33 am PDT by
The first approved Nintendo Entertainment System (NES) emulator for the iPhone and iPad was made available on the App Store today following Apple's rule change. The emulator is called Bimmy, and it was developed by Tom Salvo. On the App Store, Bimmy is described as a tool for testing and playing public domain/"homebrew" games created for the NES, but the app allows you to load ROMs for any...
top stories 13apr2024

Top Stories: M4 Mac Roadmap Leaked, New iPads in Second Week of May, and More

Saturday April 13, 2024 6:00 am PDT by
Apple's hardware roadmap was in the news this week, with things hopefully firming up for a launch of updated iPad Pro and iPad Air models next month while we look ahead to the other iPad models and a full lineup of M4-based Macs arriving starting later this year. We also heard some fresh rumors about iOS 18, due to be unveiled at WWDC in a couple of months, while we took a look at how things ...