Apple Slashes iPhone 5 Component Orders – Report

Apple has reportedly reduced its orders for iPhone 5 components due to less than anticipated demand for the smartphone.

According to the Wall Street Journal, Apple has cut its order for iPhone 5 screens to around half of what it originally planned for the January-March quarter and has also slashed its orders for other components.

The iPhone 5 was first unveiled in September, offering a larger screen, support for 4G Long Term Evolution networks and a brand new eight pin connector and there were concerns suppliers might even struggle to keep up with demand.

iPhone 5 component orders

The suppliers believed to be affected are Sharp and LG and it has been suggested that other component manufacturers might struggle to find alternative buyers for their wares due to the fact that iPhone materials are often heavily customised.

The move is being interpreted as a sign that appetite for the iPhone 5 is slowing and that Apple is facing intense competition from Android manufacturers, such as Samsung, that sell smartphones at a number of different price points. Apple has denied rumours it is looking to combat this threat by releasing a cheaper version of the iPhone.

Only last week, Samsung unveiled its new eight core Exynos 5 Octa mobile processor as it looks to diversify its customer base due to the anticipated drop in demand from Apple for its chips. This is not due to a lack of demand but down to the increasingly frosty nature of the relationship between the two mobile giants, who have been engaged in a number of bitter patent disputes.

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