Is the smartphone market suffering from slow growth these days? Both Samsung and HTC were reported to have failed to reach their respective profit estimates for the quarter. And now, there are rumors saying that Apple may be cutting down its orders of iPhone components and suppliers are being alerted about it as early as now.
The “alleged” cutting down of iPhone parts orders were claimed by Brian Blair, an analyst from Wedge Partners. Blair said that Apple has already alerted their suppliers to expect as much as 20 percent for their iPhone parts orders from June to September. Blair said reports from supply-chain in China are saying that Apple has made a dramatic change in the their demand forecast. That change transcends into 20% cut on what Apple has planned to order from the suppliers from June to September.
Looking at specific numbers, Blair said that Apple has ordered iPhone components based on an estimated demand of around 115 to 120 million iPhones. With the 20% cut, those orders are no redeuced to 90 to 100 million iPhone.
As to the reason why Apple is cutting down its orders of iPhone parts, Blair said that the company maybe monitoring the slowing demand for the Samsung Galaxy S4. And this is the company’s way of reacting to the current state of the high-end smartphone market.