Apple iPhone Takes A Cut: Orders Fall Short
January 14, 2013

Apple iPhone Takes A Cut: Orders Fall Short

Michael Harper for — Your Universe Online

The Wall Street Journal, often believed to have an inside track when it comes to this sort of information, has issued a report over the weekend suggesting Apple´s iPhone 5 might not be performing as well as it once was.

According to WSJ, Apple has cut their orders to suppliers for iPhone parts due to “weaker-than-expected” sales, according to their sources who are familiar with the matter.

The smartphone maker has reportedly cut these orders nearly in half for the January to March quarter in expectation of, one would assume, drastically slower sales. Furthermore, the Journal has said Apple is cutting back on more than just screens, implying that this is an all-around problem with the iPhone and not simply with their troubled new in-cell technology. Apple, already amidst a 4-month slip in the stock market, has now dipped below the $500 mark.

Though the 6th generation iPhone began its life by breaking records, selling more than 5 million units during opening weekend, the WSJ report suggests interest in the new phone may have cooled considerably. Apple will get a chance to either confirm or refute these claims in the coming days when they announce numbers for their December quarter.

Contrary to the latest report, some analysts have predicted the iPhone and iPad mini were flying off the shelves this holiday shopping season.

According to Rob Chira of Evercore Partners, Apple could have sold 50 million iPhones last quarter, along with 24 million iPads.

A sudden 50% decrease in component orders could be a drastic cut for a company suspected of selling so many just one month ago.

The coming months are seasonably slow for Apple´s iPhone: Many who wanted an iPhone either received one for Christmas or are content to wait until the next one is released either in the summertime or autumn.

The WSJ story has also been used to bolster a few other rumors about the new iPhone.

In an earlier report, the WSJ claimed that Apple is working on a new, cheaper iPhone as they prepare for what will be a supposedly inevitable bottoming out in the premium smartphone market. This story also backed up a previous rumor from the dubious DigiTimes purporting the same thing.

The most recent Journal story has also brought some clicks to the rumors which suggest Apple could release their next iPhone as early as this summer. Since the iPhone 4S was released, Apple has been seemingly content with releasing a new phone in the autumn months. Previously, iPhones had always been released around June or July. Now, some are suggesting Apple will return to a summer release, possibly explaining why they´ve cut their orders in half as they head into the lean season of spring.

While the Journal is a trusted news site with a host of excellent reporters, something about this story doesn't ring true.

There´s a misstep in the logic which leads from alleged strong holiday sales to a sudden alleged 50% slash in component orders.

These answers and more could be cleared up during Apple´s January 23rd earnings call.