A new report today is suggesting that Apple has reduced the orders that it placed with manufacturers for components of the iPhone 5, attributing the order reduction to a weak demand for the device. The WSJ is reporting that Apple has cut it’s order for iPhone 5 screens in half for the coming January-March quarter. This is perhaps not surprising given the initial sales of the device.
While many pundits have taken the view that reducing the iPhone 5 order means that the device is less successful than expected, it is worth being reminded that the iPhone 5 pre-orders topped two million in the first 24 hours of launch (versus one million for the iPhone 4S). In addition, the iPhone 5 sold five million units in the first weekend of launch versus four million for the iPhone 4S, meaning that the iPhone 5 ‘shattered’ the sales records held by the iPhone 4S.
Recent rumors have suggested that Apple could be looking to alter its product update cycle and that a new iPhone (coded iPhone6,1) could launch as early as May or June of this year in up to eight different colors and with enhanced storage capacity. Indeed, Developer usage logs have suggested that such a device, running iOS 7 is indeed in existence and being tested by Apple now.