Apple Cuts iPhone Screen, Component Orders for Q1 2013 by 50 Percent
January 14, 2013 6:30 AM
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This may be a sign of how iPhone demand is faring amongst the competition
The latest iPhone may not be
Apple thought it would be. The Cupertino, California-based company slashed its orders for iPhone 5 screens by about 50 percent for the first quarter of 2013, and cut orders for other iPhone components as well.
This may be a sign of how iPhone demand is faring amongst the competition. Rival hardware makers like Samsung, whose devices are coupled with Google's Android operating system, have stolen much of
the smartphone market share
in the U.S.
For Q3 2012, Android was the No. 1 mobile operating system with a market share of 72.4 percent (compared to 52.5 percent in Q3 2011). Apple's iOS followed far behind at 13.9 percent (compared to 15 percent in Q3 2011).
As far as hardware goes, Samsung led the Q3 2012 market share at 22.9 percent (compared to 18.7 percent in Q3 2011) and Apple sat in third place at 5.5 percent (compared to 3.9 percent in Q3 2011).
slipped behind in China's smartphone market
Apple, which previously held the No. 4 spot in the Chinese mobile phone market, slipped to No. 6 in Q3 2012 due to its low number of shipments, according to research firm IDC. Out of China's 60 million mobile phone shipments in Q3, Apple's iPhone accounted for less than 10 percent.
was released in September 2012 with new features like a 4-inch screen and 4G LTE connectivity. It's available in either black or white, and is
priced at $199 for the 16GB model, $299 for the 32GB model, and $399 for the 64GB model with two-year contrac
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
1/14/2013 12:15:11 PM
This article is about a story that is over 1 month old. Plus, the same kind of articles came out a year ago about the iPhone 4S and Apple went on to report blockbuster Q4 results.
Some have speculated that Apple made 60 Million iPhones and sold 45 Million of them. With 15 Million in hand, they are having “only” 30 Million made for Q1 2013 (about a 50% cut in production as per WSJ); this still gives Apple another 45 Million to potentially sell in Q1. They will probably sell less in Q1, but again have inventory left over.
1/14/2013 12:54:18 PM
It's more of an over-correction on planning. Up until December, places were waiting for iPhones, so they couldnt have been waiting in inventory. That and no company builds excess inventory like that. It's insane and you get taxed to death on it. The goal of any and all manufacturers is to plan what you build, build what you plan and sell all that you build. For a company to plan to have 15 million of anything, much less $600 devices in inventory is just like running wheelbarrows full of cash into the incinerator. Its just not done.
It is possible that they already have 15 million in open orders (15 million screens, motherboards, CPU's, conencttors etc). As in PO's already made and parts are in production... But that is still all planned for and reducing orders is reducing orders. It's never a good thing.
1/14/2013 6:29:45 PM
Let's talk again on January 28th
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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