Apple cuts orders due to weak iPhone 5 demand

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iphone 5

The Wall Street Journal has reported that Apple has allegedly issued significant cuts in its orders for the iPhone 5 because of weak demand for the product. The newspaper said that it received the information from certain people who know about what’s happening.

According the WSJ, the reduction in the orders are set for the current first quarter of this year. Among the cuts include the decreased orders for iPhone 5 screens and some other crucial components needed to manufacture the phone. The article further stated that with the cuts, the present order stands at roughly half of what Apple previously planned to order for the quarter.

Reuters have also reported the same thing. In an article published by the wire agency, Japanese iPhone screen manufacturers have allegedly intimated that the production of the screens have been reduced by 70 to 80 percent, compared to the amount produced for the last quarter of 2012.

So what this all mean? The most obvious conclusion is that the iPhone 5 is not performing as well in the market compared to previous generations of the product. Another conclusion is that orders for the last quarter of 2012 may be the one that is beyond normal – Apple may simply have manufactured more phones in that period and now they’re cutting back to the normal rate of production for the first quarter of 2013. Lastly, this reduction in orders could be a sign that the rumors of an iPhone 5S is indeed true.

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