Is demand for iPhone 5 decreasing?


While Apple’s latest earnings call isn’t due until sometime later this month, rumors are already starting to circulate — and they’re not the good kind, at least for Apple.

The Wall Street Journal claims that the company has cut orders for iPhone 5 components due to “weaker-than-expected” demand for the device. Just how much cuts are we talking here? The Journal cites “people familiar with the situation” and pegs the amount to around half. If these rumors are true, that’s a pretty big cut.

Apple’s smartphone market share has also been shrinking recently, dropping to 15 percent in the third quarter of 2012. Samsung on the other hand, has overtaken Apple and now leads the market with 31 percent of all smartphone sales.

It’ll be interesting to see how Apple responds to this — maybe through an accelerated upgrade cycle or the rumored bigger but cheaper iPhone for emerging markets. It might also be safe to say that iOS 7 and the next iPhone are gonna have a lot riding on them. If we do see a revolutionary new iOS and iPhone next time around, we’ll only have one thing to be thankful for — competition.

[via Gizmodo]

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  • Enrique

    @Grantwhy: That’s definitely a factor. The iPhone 5 might not have given enough reason to upgrade for a lot of users. I know that’s why I didn’t upgrade!

  • Grantwhy

    I suspect there are a lot of people who kept their older iPhones and did not ‘trade up’ like they were expected to.

  • Mike

    Apple no longer has the monopoly on successful, cutting-edge smartphones. It does, however, have a monopoly on expensive, over-priced technology. Put the 2 together and you have the expected result, reported here, especially for most of the (non-rich) world.

  • AFPhys

    Apple’s shine can not last forever, and now that there is significant competition from big players, they’re going to have to start working for their customers… and quite likely, charging them a lot less.