Reports of 'weak' iPhone 5 demand don't tell whole story
When it comes to Apple, tea-leaf reading is always in season.
If you believe the Wall Street Journal, which cites the seemingly ubiquitous—and perenially anonymous—“sources familiar with the situation,” Apple has halved component orders for the iPhone 5, less than a month out of its holiday quarter. A report from the Nikkei supports the Journal’s information, citing reduced purchases of LCD screens from Sharp and LG, and reduced flash memory orders from Samsung.
Given that sources seem to agree Apple is indeed cutting its orders for components, the real puzzle becomes what’s at the the root of the change? According to the Journal, it’s “weaker-than-expected demand” for the iPhone 5 that has spurred Apple’s decision.
In demand
If you find this perplexing, you’re not alone. The iPhone 5 had two million pre-orders in the first 24 hours of its availability, doubling that of its predecessor, the iPhone 4S. There was no slouch in actual sales, either: In its debut weekend, customers picked up iPhones to the tune of 5 million, compared to 4 million for the iPhone 4S. (Though, to be fair, the iPhone 5 launched in two additional regions: Hong Kong and Singapore.) Just a few months later, the company moved an additional 2 million iPhone 5s when the device went on sale in China. While those numbers may not be enormous improvements over the previous year’s sales, it’s not as though the numbers have declined.
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http://www.macworld.com/article/2025285/reports-of-weak-iphone-5-demand-dont-tell-whole-story.html
