iphone 51 -

Apple is experiencing lower than expected demand for its iPhone 5 and has cut orders for components as a result, people familiar with the situation have revealed.

The Wall Street Journal reports that Apple's orders for iPhone 5 screens for the January-March quarter have been reduced to approximately half of what had previously been planned. Orders for other components have also been reduced.

Apple is said to have notified suppliers of the order cuts last month.

News of reduced demand for iPhone 5 follows a concerning decline to the firm's smartphone market share, slipping from a 23 per cent high in Q4 2011 to 14.6 per cent in Q3 2012. Main rival Samsung has gone from strength to strength and now holds a worldwide market share of 31.3 per cent.

Apple will report its latest earnings in a few weeks.

Source: WSJ

New stuff to check out

Comments

To add your comment, please login or register

User Comments

EverTheOptimist's Avatar

EverTheOptimist

You can only re-brand something so many times.
Posted 13:08 on 14 January 2013
Clockpunk's Avatar

Clockpunk

People learn! Admittedly, rather slowly in this case, but still... the basics of contextual familiarisation (i.e. nothing major added, new revision will be announced/shoved out soon at the same pricepoint) and accompanying behavioural modification (waiting for the better stuff) are there. :p
Posted 11:47 on 14 January 2013
pblive's Avatar

pblive

I think it's mainly down to releasing a new product too quickly with less major updates, plus the current trend of 2 year contracts for mobiles.
Posted 11:43 on 14 January 2013
MJTH's Avatar

MJTH

I think apple has been over estimating the loyalty of their customers. After 5 remodels of the same product in 5 years, there are only so many people left who want a new iPhone. Especially since the biggest improvement really is just a longer screen, and that android has finally become a worthy competitor.
Posted 11:38 on 14 January 2013