Apple iPhone 5 in trouble? Weak demand affecting parts shipments
Weak demand for Apple's flagship iPhone 5 has reportedly caused the tech giant to halve its orders for LCD screens from Sharp, LG and Japan Display.
Is the iPhone 5 in big trouble?
Weak demand for Apple's flagship iPhone 5 has reportedly caused the tech giant to halve its orders for LCD panels from Sharp, LG and Japan Display.
The Telegraph, quoting a report by a Japanese newspaper, said that Apple "is expected to temporarily reduce output by up to 80 per cent compared to the October to December period".
The Wall Street Journal also reported that Apple had also cut orders for other components, citing "people familiar with the situation".
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The reports come even as a Samsung led Android charge is blazing through the smartphone market. Samsung in fact just reported that it had sold over 100 million devices of its Galaxy S range, and its flagship S III device was the fastest selling smartphone last year.
More from News AnalysisAn ANI report quoted a study by Buzz marketing which said that youngsters are turning away from Apple's much-feted iPhone, as they're simply no longer cool enough.
"iPhones have saturated the market and become the phone of choice for everyone, including parents and teachers, but youngsters are looking for something more original and less mainstream", the report said.
A post on the lifeonmymobile.com site added that this was reflective of Apple's inability to wake up to the compeition posed by Android. He writes:
There is no doubt Apple has been hurting in the last six months. Between a horrid Maps experience, a shake-up of executives, a falling stock price and loyal iPhone users looking over the fence at the greener grass on Google's lawn. Android has defiantly taken a huge bite out of Apple and Apple has been slow to respond
However Jamie Condliffe of Gizmodo says that there is no reason to start spelling out Apple's doom. He says:
"Certainly, Apple's share of the smartphone market has been shrinking of recent times, dropping from a peak of 23 percent in the final quarter of 2011 to 15 percent in the third quarter of 2012. Elsewhere, Android is going from strength to strength-with Samsung stealing Apple's lead, now commanding 31 percent of smartphone sales. Changes aside, though, it's worth remembering that Apple's position is slipping from what was a very strong position".
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