Reports: Apple slashes iPhone component orders
While some experts take the news with some salt, others explain the downturn by citing rocketing sales of Samsung's Galaxy S III
Computerworld - Apple has slashed orders for iPhone screens in the first quarter by half, according to Monday reports out of both Japan and the U.S.
Earlier today, Japan's Nikkei and the U.S.-based Wall Street Journal (subscription required), both citing unnamed sources, claimed that iPhone display orders had dropped to about half what Apple had previously planned for the quarter ending March 31.
Suppliers were notified of the cuts last month, according to the Wall Street Journal, and the scale-backs involved other components beside screens.
Investors interpreted the reports as bad news -- that Apple expects iPhone sales will dramatically slow -- and pushed the company's stock price down 3.4%, or nearly $18, to $502.50, by 1:30 p.m. ET.
Some analysts were skeptical of the reports, considering other evidence -- including an iPhone sales record by AT&T in the fourth quarter -- that pointed to the contrary.
"Anything is possible, but [the reports] are not consistent with other evidence coming in," said Ezra Gottheil, an analyst with Technology Business Research.
Even so, Gottheil offered explanations for the cutbacks, assuming they have occurred. "Other smartphone companies have caught up [to the iPhone] in performance and design in their new devices," Gottheil said. "Competing products are relatively stronger than they were two years ago."
Darren Hayes, an assistant professor at Pace University's Seidenberg School of Computer Science and Information Systems in New York, put more credence in the reports, and echoed Gottheil's rationale for the falling orders.
"Given the recent numbers of the Galaxy S III, Samsung is a serious competitor, so I'm not surprised that some of the initial hype over the iPhone 5 has dissipated," said Hayes in a Monday interview. "The Galaxy is a trendy phone for young people, and I see lots of students buying these."
Hayes also ticked off some of the familiar knocks against Apple's business model, ranging from its intransigence over high carrier subsidies and the Maps debacle to its habit of upgrading the iPhone annually, saying that those decisions have come home to roost.
- Microsoft's new lower-priced Office 365 is 'obvious preface' for iPad suite
- Apple's CarPlay vs. MirrorLink: Is there a need for both?
- Apple's CarPlay to spark mobile apps war in your car
- iTunes is almost as big a biz as OEM Windows
- Icahn says 'I can't' and stops $50B fight over Apple stock buyback
- Lenovo-Moto deal's impact on Apple? Zip
- Office 365 turns one, but success is tough to tally
- Everyone bets on bigger iPhone for '14
- Apple's iPod business collapses as revenue becomes a rounding error
- Update: More than 1B smartphones were shipped in 2013
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Gartner 2013 Magic Quadrant for Enterprise Backup/Recovery Software See why CommVault was positioned as the #1 leader in Gartner's 2013 Magic Quadrant for Enterprise Backup/Recovery software for the 3rd year in...
- Forrester Report: CommVault is a Leader in Enterprise Backup and Recovery In this report, Forrester takes a deep dive into the evaluation criteria, how CommVault is positioned and the features and functionality that make...
- Forrester Wave for Enterprise Backup and Recovery Read this report to see how CommVault continues to outpace its competitors and why Forrester positioned CommVault Simpana as the top backup and...
- Architecting the Network of the Future Networks need to change, as does the way IT thinks about and manages them. In addition to reliability, IT must now add higher...
- Four Myths of High-Productivity App Dev Debunked Debunk the main myths surrounding high-productivity application development and how both platforms have overcome them.
On-Demand Webcast: 7 Reasons to Choose VoIP
Thinking about a new phone system for your business?
Be sure to watch this informative webcast. Steve Strauss, small business columnist for USA...
All Smartphones White Papers |