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iPhone 5 Demand Weakens, Apple Cuts Screen Orders

By - Source: Wall Street Journal | B 29 comments

Orders for other components of the latest Apple smartphone also reduced.

Apple is said to have cut orders of the iPhone 5 screens by around 50 percent last month due to the demand of the device weakening.

The technology giant reduced its orders last month for iPhone 5 screens for the first quarter of 2013 by around half its original target, sources told The Wall Street Journal. It also purportedly cut orders for other screen sizes, as well as reducing orders for other components.

During December, UBS analyst Steven Milunovich reduced his iPhone sales estimates for the March, June, and September 2013 quarters by 5 million units each quarter. He believes the company won't experience the same success it did during 2012.

In related news, Apple is suffering its largest share price drop in four years.


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Top Comments
  • 15 Hide
    cats_Paw , January 16, 2013 8:11 AM
    Well, it had to happen eventually...
    I dont think this would surprise anyone.
  • 12 Hide
    blakbird24 , January 16, 2013 12:22 PM
    jaquithHate Apple (USA) so love Korea (KOR), and while Google couldn't care less which 'device' your using with it's ($0) free OS as long as it's product (you) is using as many of it's services as possible to track everything (you) are doing for it's paying clients (Ads) advertisers.There's some some irony! Since it takes several units of the e.g. Galaxy to equate the same income as (1) iPhone Apple has little to worry about. So those that say "F*uck Apple" -- add to that "F*ck USA."This Forbes story has it right - http://www.forbes.com/sites/markro [...] -the-core/ so do you say F*ck Forbes?"


    FYI...all of apple's mobile products are made in china. Conversely, Samsung plans to have 100% of production of it's US-market mobile devices made in the US within 10 years. They've already started on that path. The only thing "American" about Apple is the location of their headquarters.

    If you believe Apple is not tracking and watching everything you do on an iPhone just like Google watches Android phones, then you are even more gullible than the fanboys you complain about.
  • 11 Hide
    Firion87 , January 16, 2013 9:03 AM
    As Nelson from The Simpsons would say and point: "HaHa!!!"
Other Comments
    Display all 29 comments.
  • 15 Hide
    cats_Paw , January 16, 2013 8:11 AM
    Well, it had to happen eventually...
    I dont think this would surprise anyone.
  • 9 Hide
    JJ1217 , January 16, 2013 8:40 AM
    BAHAHAHAHAHAHA... Apple is so funny.
  • 9 Hide
    Anonymous , January 16, 2013 8:46 AM
    Apple seemed to be regaining Market share in the US, but in Europe its sales are suffering vs Android.

    This is the opportunity Microsoft have been waiting for, can they capatilize on it? I have a Lumia 920 and everybody who has seen it, except for die hard Apple fans (who would buy a lump coal for $600 if it said Apple on it), have been impressed.
  • 2 Hide
    dmuir , January 16, 2013 9:01 AM
    I'm calling shenanigans. Stock manipulation plain and simple.

    http://www.forbes.com/sites/markrogowsky/2013/01/15/did-the-wsj-get-punkd-on-apple-or-is-it-rotten-to-the-core/
  • 11 Hide
    Firion87 , January 16, 2013 9:03 AM
    As Nelson from The Simpsons would say and point: "HaHa!!!"
  • 3 Hide
    fuzzion , January 16, 2013 9:05 AM
    Apple lost its niche market, that was innovative phones combined with design and intelligent OS. In an ironic twist of faith, lets hope the chinese market can save AAPL.
  • 7 Hide
    back_by_demand , January 16, 2013 9:54 AM
    Oh, how the mighty have fallen
    ...
    Apple fans laughed at Microsoft as they reduced their dominance, now it is happening to them it isn't quite as funny is it?
  • 5 Hide
    TheBigTroll , January 16, 2013 11:04 AM
    im guessing people who want a iphone already have a iphone. that this point there isnt much point of upgrading
  • -2 Hide
    teh_chem , January 16, 2013 11:26 AM
    Get with it WSJ and Tom's... Cutting current orders says nothing about previous orders. It's common practice for companies to front-load orders for materials and create an internal surplus. This is especially common after the Q4 of the fiscal year where a company sets out to max its spending for the year so as not to negatively impact Q1 of the next fiscal year. I'm saying all of this as a general Apple-disliker. But these orders say nothing about actual demand for the device--it's just an inferred conclusion from Tom's. Many analysts (both tech. and financial) in the industry have de-bunked this already.
  • 9 Hide
    blakbird24 , January 16, 2013 11:53 AM
    There is a very interesting parallel that has been ongoing for years, a parallel that should make most reasonable human beings stop and think. Apple and Lance Armstrong. Examining the trajectories of these two entities should make us realize how shitty we really are. Modern media has done everything in it's power to turn every single story into an epic. We cheer the rise of a hero...but we find even more satisfaction in the fall of that same hero. Just as Lance Armstrong was built up to be this impossibly great athlete, Apple was inflated to levels never substantiated. Apple's "creator" attained god-like status when in reality he was an a-hole who's real talent was marketing. Projected sales numbers placed at unattainable levels then required the doctoring of the "actual" numbers...all of this led to a massive bubble. As we all know painfully well, bubbles burst. Just as Lance is experiencing his fall from glory, Apple is slowly sinking. Fans don't understand what's going on, just as non-fans couldn't understand the uncontrolled ascension. It doesn't make any sense because it shouldn't have happened in the first place. But now the paper hero is exposed, and the cycle will begin again. All the while the media tycoons rake in the profits, and we just follow, ready to gobble up the next epic they create.
  • 2 Hide
    halcyon , January 16, 2013 11:58 AM
    If Apple can find a way to make iOS both simple (for those that value that) and powerful/customizable (for the rest of us) as well as make the next iPhones/iPads innovative they can do fine. If they continue to do what they've been doing...well, it'd be their own fault.
  • -4 Hide
    jaquith , January 16, 2013 12:16 PM
    Hate Apple (USA) so love Korea (KOR), and while Google couldn't care less which 'device' your using with it's ($0) free OS as long as it's product (you) is using as many of it's services as possible to track everything (you) are doing for it's paying clients (Ads) advertisers.

    There's some some irony!

    Since it takes several units of the e.g. Galaxy to equate the same income as (1) iPhone Apple has little to worry about.

    So those that say "F*uck Apple" -- add to that "F*ck USA."

    This Forbes story has it right - http://www.forbes.com/sites/markrogowsky/2013/01/15/did-the-wsj-get-punkd-on-apple-or-is-it-rotten-to-the-core/ so do you say F*ck Forbes?"
  • 2 Hide
    master9716 , January 16, 2013 12:21 PM
    Steve Made the First real smartphone , Apple just happened to be the company he worked with . They did a good job marketing to nerds that would pay 500 dollars for a phone and wait in line , After so many years the nerds got smarter and said "well I can get an S3 with a huge screen " while Apple keeps recycling their phones. This reminds me of Blizzard Master recyclers.
  • 12 Hide
    blakbird24 , January 16, 2013 12:22 PM
    jaquithHate Apple (USA) so love Korea (KOR), and while Google couldn't care less which 'device' your using with it's ($0) free OS as long as it's product (you) is using as many of it's services as possible to track everything (you) are doing for it's paying clients (Ads) advertisers.There's some some irony! Since it takes several units of the e.g. Galaxy to equate the same income as (1) iPhone Apple has little to worry about. So those that say "F*uck Apple" -- add to that "F*ck USA."This Forbes story has it right - http://www.forbes.com/sites/markro [...] -the-core/ so do you say F*ck Forbes?"


    FYI...all of apple's mobile products are made in china. Conversely, Samsung plans to have 100% of production of it's US-market mobile devices made in the US within 10 years. They've already started on that path. The only thing "American" about Apple is the location of their headquarters.

    If you believe Apple is not tracking and watching everything you do on an iPhone just like Google watches Android phones, then you are even more gullible than the fanboys you complain about.
  • 1 Hide
    bllue , January 16, 2013 12:56 PM
    Good news!
  • 0 Hide
    retrophe , January 16, 2013 2:22 PM
    jaquithHate Apple (USA) so love Korea (KOR), and while Google couldn't care less which 'device' your using with it's ($0) free OS as long as it's product (you) is using as many of it's services as possible to track everything (you) are doing for it's paying clients (Ads) advertisers.There's some some irony! Since it takes several units of the e.g. Galaxy to equate the same income as (1) iPhone Apple has little to worry about. So those that say "F*uck Apple" -- add to that "F*ck USA."This Forbes story has it right - http://www.forbes.com/sites/markro [...] -the-core/ so do you say F*ck Forbes?"


    Actually yes, since this recent article of theirs says that Dayton, Ohio as the happiest place to work . . . riiiiiiiiiiight
    http://www.forbes.com/pictures/efkk45edkmj/the-10-happiest-cities-to-work-in/?utm_source=homes.yahoo.com&utm_medium=partner&utm_campaign=happiest%2Bcities%2Bto%2Bwork&partner=yahoore
  • 2 Hide
    rebel1280 , January 16, 2013 2:26 PM
    A company that big falling from grace cant be good for the workers in China :(  I would say that apple sees the profits and since they are an American company that helps our bottom line but the truth is, they probably get so many tax breaks it doesn't even matter.
    Just one of many sources:
    http://seekingalpha.com/article/263982-why-ge-apple-and-google-will-pay-a-lower-tax-rate-than-you
  • 4 Hide
    Anonymous , January 16, 2013 2:40 PM
    I've heard from a couple people recently that iPhones are so common they aren't special anymore. A co-worker said his kids refused getting an iPhone because they didn't want a phone like grandma's.
  • 0 Hide
    f-14 , January 16, 2013 5:13 PM
    i doubt it this has much to do with demand as it does with apples tanking stock and their not being able to afford to reduce profit margins. apple stock has been in a long protracted fall from a high of $700 down to 4475 and sinking

    http://screen.yahoo.com/breakout-apple-broken-deal-160000990.html
  • 0 Hide
    Onikage , January 16, 2013 6:44 PM
    Best news of this new year so far !
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