Apple are reportedly slashing orders on iPhone 5 components, as demand has failed to meet their initial expectations.
The claim, first made by the Wall Street Journal and corroborated by Japan’s Nikkei, states that deals with suppliers for shipments of the iPhone 5’s display have been cut in half, with other unspecified components also having their orders reduced.
According to Nikkei, Apple had anticipated the need for 65 million displays, likely to accommodate both iPhone 5 and fifth generation iPod Touch units, as both use the same display technology. However, with Apple reportedly altering the magnitude of the order last month, the fortunes of struggling display supplier Sharp are now being called into question. Likewise, the rumoured order change is likely to have an unexpected knock-on effect on both Japan Display and LG Display, who also help deliver Apple’s screens.
With Apple yet to reveal new sales predictions for the iPhone 5, it’s worth holding fire before concluding that the iPhone 5 hasn’t had the long-term staying power that its predecessors enjoyed. Apple are expected to reveal iPhone 5 sales figures later this month, which will likely shed more light on the claims.
Indeed, recent successful launches in China and Russia prove there are many still enamoured with the handset, with Apple shifting 2 million and 20,000 handsets in the two territories respectively.
By Gerald Lynch | January 14th, 2013