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80,259 News Articles

Apple cuts iPhone 5 parts orders due to low demand

Apple under pressure from Android smartphones

Apple iPhone 5

Apple has reportedly cut orders for iPhone 5 components due to lower than expected demand.

A weaker than expected demand for the iPhone 5 has led Apple to cut its orders for the smartphones components. The iPhone and iPad maker has halved its order for iPhone 5 screens, according to The Wall Street Journal.

'People familiar with the situation' said that Apple has also reduced orders for components other than screens. Apple let suppliers know about the cuts last month.

The WSJ reports that the reductions in orders are due to weaker sales of the iPhone 5 than expected. Apple has strong competition from Samsung and other Android smartphone manufacturers.

The news comes after Samsung announced that it has sold more than 100 million units of its Galaxy S series of smartphones. The most popular of which has been the Galaxy S3 which has sold over 40 million since launching in May 2011.

It has been more popular than the iPhone 5 in the UK which hit shops in September. And while Samsung has increased its market share to 31.3 percent in the third quarter of 2012, Apple's dropped to 14.6 percent.

Apple's iPhone 5 came with a larger 4in screen for the first time since the original iPhone. This year Full HD smartphones will launch and potentially ones with flexible displays. The successor to the iPhone 5, possibly the iPhone 5S or iPhone 6, has been tipped to arrive early this year but we're not so sure about that. Nevertheless, it will be an important launch for Apple as it comes under increasing pressure in the smartphone market.

Follow Chris Martin and @PCAdvisor on Twitter.


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