iphone 5 iPhone 5 components order cut: Apple under pressure?

[neo1911]

Apple has cut orders for LCD screens and other parts for the iPhone 5 this quarter due to weak demand, the Nikkei reported, in a further sign the US firm is losing ground to Asian smartphone rivals.

Shares of the Cupertino, California-based company fell more than 4 per cent to $498.20 before the bell on Monday. They closed at $520.30 on Friday on the Nasdaq. The news also dragged shares of Apple suppliers such as Cirrus Logic and Qualcomm.

Apple has asked Japan Display, Sharp and South Korea's LG Display to roughly halve supplies of LCD panels from an initial plan for about 65 million screens in January-March, the Japanese daily said, citing people familiar with the situation, adding the US firm also cut orders for other iPhone components.

The move, if confirmed, would tally with analysts saying that sales of the new iPhone 5, which was released in September, have not been as strong as anticipated.

Apple was not immediately available for comment outside regular US business hours. No one at Sharp was immediately available to comment - a national holiday in Japan - and parts suppliers to Apple in Taiwan declined to comment.

Apple has lost ground in the $200 billion plus global smartphone market to South Korean rival Samsung Electronics and smaller Chinese rivals such as Huawei and ZTE.

Jefferies analyst Peter Misek trimmed his iPhone shipment estimates for the January-March quarter on December 14, saying that the technology company had started cutting orders to suppliers to balance excess inventory.

Apple also cut its orders for memory chips for its new iPhone from its main supplier and competitor Samsung, Reuters reported in September, quoting sources with direct knowledge of the matter.

The company has been cutting back its orders from Samsung as it seeks to diversify its memory chip supply lines.

Source: Times of India

[+Warwagon MVC]

Uh oh.

[_neutrino Veteran]

I think people are more interested in variety anymore and they are leaving the iphone behind. Apple might want to think about a drastic change in direction. However, if the stories are true and they are going to be coming out with a few different models next time (multiple sizes, and colors) they might help themselves a little.

[Rippleman]

I think people are more interested in variety anymore and they are leaving the iphone behind. Apple might want to think about a drastic change in direction. However, if the stories are true and they are going to be coming out with a few different models next time (multiple sizes, and colors) they might help themselves a little.

i for one wanted to try Droid out because of the bigger screens avialible About a week ago i bought a Samsung Galaxy s2x, liked it at first but after a week of usage hate it. I hope that iphone does get a 4.5+ screen, I would down for that kind of variety for sure. But wouldn't never pay apple $500+ for it... so even if they do offer variety they need to start coming down in price.

[Draconian Guppy]

I hate it how a new model has to be "cheaper" in Apples view. How does HTC, Samsung and LG manage to keep up and still keep phones below $500. I know Apples build quality is non plus ultra, but still.

[matt4pack]

I myself am waiting for the Blackberry 10 Z10. Almost time to say goodbye to my iPhone.

It's been very trustworthy hardware wise but after a while you really start to notice all the flaws of it's user interface.

[techbeck]

i for one wanted to try Droid out because of the bigger screens avialible About a week ago i bought a Samsung Galaxy s2x, liked it at first but after a week of usage hate it. I hope that iphone does get a 4.5+ screen, I would down for that kind of variety for sure. But wouldn't never pay apple $500+ for it... so even if they do offer variety they need to start coming down in price.

Doubt Apple will be producing 4.5+ in screens anytime soon, if at all. Took them this long to switch to a 4in screen.

[azspeedbullet]

i guess apple wont be making the iphone 6 for a long long time

[Draconian Guppy]

i guess apple wont be making the iphone 6 for a long long time

They will probably just trickle to 5s just as they've done with the previous models.

[Boz]

Their stock is dropping like a brick. They've hit below $500 today.

[Chris123NT]

Their stock is dropping like a brick. They've hit below $500 today.

Yep, and that drop is reflecting a drop in consumer enthusiasm about their products.

As was said previously in this thread, lack of variety.

[DrakeN2k]

Also lack of innovation , 1 MORE ROW OF tiles... Yawn

[TurboShrimp]

most people have a phone right not and as fast as these phones are coming out people just do not need a new phone right now so yes sales have to slow down sooner or later.

when most people can not upgrade but once every 2 years I myself can not get a new phone for 1 year 10months because of contract.

so the parts apple would have to order for my upgrade need to be cut - see how that works.

now do that with 20-30 million people ask them if they can upgrade right now.

this type of thing happens with all products every day all year round.

some of these topics smell funny to me

[Chris123NT]

It's not surprising, Apple declined after Steve left back in the 80's, and it's declining now that he's dead. He was the only one that really brought fresh ideas to the table. Look at their bounceback when he came back in 1997.

[neufuse Veteran]

Their stock is dropping like a brick. They've hit below $500 today.

yeah, Apple investors at $700+ are probably moaning right now....... I can see apple settleing out around $350 a share... market watchers see apple being at $425 within the next 12 months

[torrentthief]

The thing is, you can now get very nice android phones with larger higher-res screens for just around ?100 imported or a decent one like huewei g300 for ?70-100. Android has word of mouth now, 3yrs ago most people hadn't heard of it. Now they realise they can do virtually everything on an android phone for a fraction of the cost. The fact that they haven't released anything for a few years, just minor updates. Also they have awful P.R from the lawsuits.

[Quillz]

It's not surprising, Apple declined after Steve left back in the 80's, and it's declining now that he's dead. He was the only one that really brought fresh ideas to the table. Look at their bounceback when he came back in 1997.

The Apple of the 90s was nothing like the Apple today.

[vcfan]

me and a bunch of other people have been saying for a long time the stock was wayyyy overvalued,and that one day it was going to bomb. all the apple fanboys were saying that it was going to reach $1000. all the dumbass analysts were inflating the stock with their ****ty nonsense.

its no surprise considering that recent consumer research shows teens think of apple as done,and think of Microsoft and Samsung as cool.

its all over for apple. this is just the beginning.

[Colin McGregor]

Also lack of innovation , 1 MORE ROW OF tiles... Yawn

Hows that different than android. Just another row of tiles OS. I've used BB, iOS, android and WP and the only one I can truly say made me care that I had a phone so far is WP.

[The Evil Overlord]

most people have a phone right not and as fast as these phones are coming out people just do not need a new phone right now so yes sales have to slow down sooner or later.

when most people can not upgrade but once every 2 years I myself can not get a new phone for 1 year 10months because of contract.

so the parts apple would have to order for my upgrade need to be cut - see how that works.

now do that with 20-30 million people ask them if they can upgrade right now.

this type of thing happens with all products every day all year round.

some of these topics smell funny to me

I agree, I miss the old, upgrade once a year method, and did think to myself that this could impact buying trends, especially for those who can just about afford it, myself included but alas, a lot of phone companies have adopted this method without a care of what their customers want, (I said a lot, not all and I am pleased that there is still the odd 1 or 2 providers out there that still offer the 12 month contracts

[Somnus]

I found it totally surprising this last weekend when my son's iPhone 4 died and when I asked which phone it wanted it replaced with, he immediately said a Windows 8 phone. I got him the Lumina 920 and I was quite impressed with it. He absolutely loves it.

When kids are switching from Apple because it's no longer cool, they are headed no where but down.

In another surprising twist right after getting the Lumina, he wanted Windows 8 on his desktop.. blew me away. Teenagers are starting to flock to Win8 based devices. It's the new cool.

[(Spork)]

i knwo i have less and less people ask for the iphone 5 more are going to the lumina 920 i was shocked at first then i got to play with one for a week ..... i see why they are growing in popularity

the only weakness i see really is the app store imho

in my area the 3 best selling phones

sgs3

lumina 920

iphone5

but whats shocked me the most is the amount of teenagers NOT wanting the iphone5

[TurboShrimp]

I found it totally surprising this last weekend when my son's iPhone 4 died and when I asked which phone it wanted it replaced with, he immediately said a Windows 8 phone. I got him the Lumina 920 and I was quite impressed with it. He absolutely loves it.

When kids are switching from Apple because it's no longer cool, they are headed no where but down.

In another surprising twist right after getting the Lumina, he wanted Windows 8 on his desktop.. blew me away. Teenagers are starting to flock to Win8 based devices. It's the new cool.

let us know how he likes the windows phone in two months once he starts to complain about the lack of and quality of apps

[javagreen]

let us know how he likes the windows phone in two months once he starts to complain about the lack of and quality of apps

I doubt he'll miss 1000s of the same-o crappy rebranded iOS apps and the stupid n00by apps which make up most of the "Top 25" or whatever-they-call-it of the Apple App Store.

Nice try, but Nope.

[neo1911]

The only area the iPhone 5 losses out is the screen size. Needs to go up to 4.5". Right now it's a non-contest compared to the likes of Lumia 920 or SGS3