Reports say iPhone 5 demand is now half of planned figures. Apple (NASDAQ:AAPL) is said to have slashed component orders. The pre-market stock price is falling fast, heading below $500. The company's upcoming earnings announcement should make interesting reading.
In IT Blogwatch, bloggers listen to 'people familiar with the situation.'
Your humble blogwatcher curated these bloggy bits for your entertainment.
A breathless Juro Osawa reports from Hong Kong, where he's hearing about poor iPhone 5 sales:
Apple's orders...for the January-March quarter...have dropped to roughly half of what the company had previously planned. ... Apple notified the suppliers of the order cut last month. ... [It] indicates that sales of the new iPhone haven't been as strong as...anticipated.
...Apple representatives weren't immediately available for comment. MORE
Avik Das adds dis:
Apple Inc has almost halved its order with suppliers of LCD panels...due to weak demand. MORE
Jamie Condliffe adds balance:
Certainly, Apple's share of the smartphone market has been shrinking. ... Elsewhere, Android is going from strength to strength. [But] it's worth remembering that [it's] slipping from what was a very strong position.
...If the rumors are true...it will be interesting to see how Apple adapts in order to breathe life into the brand. MORE
And Jonny Evans unravels a tangled web:
...conflicting reports, company statements and speculation stir the pot of expectation [on] Apple's 2013 product plans. ...it has been claimed that Apple's making plans to introduce a smaller iPhone-related device. ... [But] Phil Schiller [said] cheap smartphones "will never be the future of Apple products."
...[But] a smaller phone doesn't need to be a cheap phone. ... I sense the hand of Apple PR. ...the notion that cheap will never be the future isn't so surprising. ... Apple says it is only interested in being at the leading edge of smartphone manufacturing. ... Apple's profit margins [give] the company 75 percent of the profits made in the smartphone business. MORE
But a bearish blackbook needs to know why:
So is it "weaker-than-expected" demand or a potential mid-cycle refresh or the addition of a cheaper handset?
...But whatever, the stock will be sure to drop tomorrow. MORE
Meanwhile, Troy D. Brown puts it in some sort of context:
There is no doubt Apple [is] hurting [from] 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. ... Loyal users will...move on if you can’t give them a device that outshines all others.
...diehard iOS users [say] iOS is aging and needs a refresh [and that] Apple needs to loosen up the stranglehold on developers. ... I [talk] to users everyday and count some of the most influential people in the smartphone industry as friends. ...there is no time like the present to take a stand and get things back in order before you start seeing articles that Ubuntu is now the second best selling device behind Android. MORE