All the latest UK technology news, reviews and analysis


Apple cuts screen orders amid fears of slowing iPhone sales

15 Jan 2013
Apple iPhone 5 front featuring 4G and 4in screen

Apple has reportedly canceled hardware orders, fuelling speculation that sales of the company's iPhone 5 handset are falling short of expectations.

The Wall Street Journal cited industry sources in reporting that suppliers have had orders from Apple for display hardware on its flagship smartphone. According to the report, the company has cut half of its stock for the upcoming financial quarter.

Apple stock took a hit following publication of the report, dropping 3.57 percent in trading and closing at $501.75 per share.

The news stoked fears that Apple's latest iPhone was failing to live up to the company's sales expectations. Apple's last quarterly report pegged iPhone 5 sales at 26.9 million units sold. More recently, the iPhone 5 debuted in China with more than two million units sold.

Apple has recently seen its dominant position in the smartphone space erode at the hands of Android device vendors. Samsung in particular has surged in recent months, claiming the lion's share of a blossoming market for connected devices.

Earlier this week, Samsung claimed another milestone when it revealed that the Galaxy S3 topped 40 million units sold.

According to Gartner analyst Carolina Milanessi, it could be Apple's own devices impacting iPhone 5 sales. Milanessi told V3 that the iPad Mini might be the culprit.

"This would affect more new users who would see the iPad Mini as a more economical way to get into the Apple ecosystem or alternatively previous generations iPhone owners that get an iPad Mini instead of upgrading," Milanessi suggested.

"We heard from Apple about the impact of the Mini on the iPad but nothing yet on iPhone."

Apple, meanwhile, continues to work on the next version of the iPhone. Early reports suggest that the company is currently testing a new handset lineup which will offer multiple form factors and colours.

If remarks from Apple executives are to be believed, however, the new iPhone lineup will not include budget-priced models. Executive Phil Schiller recently told press that the company does not wish to develop a "cheap" iPhone.

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
Shaun Nichols
About

Shaun Nichols is the US correspondent for V3.co.uk. He has been with the company since 2006, originally joining as a news intern at the site's San Francisco offices.

More on Mobile Phones
What do you think?
blog comments powered by Disqus
Poll

IT curriculum poll

With coding now compulsory in schools, how important are digital skills for the next generation of school leavers?
66%
9%
17%
8%

Popular Threads

Powered by Disqus
V3 Security Summit

V3 Security Summit Day 2: Botnet, skills and BYOD intelligence incoming

Keep V3 bookmarked for news updates on all the key security concerns and topics facing businesses

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv3may

Getting started with virtualisation

Virtualisation can help you reduce costs, improve application availability, and simplify IT
management. However, getting started can be challenging

ibmv3may

Converting big data and analytics insights into results

Successful leaders are infusing analytics throughout their organisations to drive smarter decisions, enable faster actions and optimise outcomes

Dev Ops

The DevOps role is a critical bridge between Development...

Business Analyst

We are recruiting for a great opportunity for a Business...

IT Analyst -(T-SQL, SSRS, SSIS, thinkFolio)

IT Analyst -(T-SQL, SSRS, SSIS, thinkFolio) IT Analyst...

Strategic Business Analytics Consultants

Strategic Business Analytics Consultant - Great opportunity...
To send to more than one email address, simply separate each address with a comma.