Apple under pressure from Android smartphones
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.
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Comments
Bertie said: Over priced tat bought by people who think it makes them something theyre not
Zmynfo said: The main reason is iOS6ampiPhone5 inability of jailbreak iPhone is useless wo jailbreak Only very expensive piece of jewelry
Matt Egan said: I dont know the details but it is possible for a product to become number 1 as demand drops In fact it makes sense statistically once youre on top demand is bound to drop there are fewer new customers I suspect its a little of both however I bet the reports you have read consider only a portion of the handset market and that Apple has reduced orders to manage profitability No-one thinks Google is struggling to sell the Nexus 4 mainly because the number of products made has been restricted
admin 1 said: This is strange A number of websites have been claiming that Apple has taken back the lead in US with 53 of smartphone sales and that Samsungs sales in the US have fallen Both cant be right I just wonder whether some of these reports arent just PR articles written for Apple - after all there is a lot you can do to lie with statistics
Matt Egan said: Then they wouldnt make any money Something Apple refuses to do And you know it has made a few quid over the years
Chi Am said: Not if you were in Space
Chi Am said: Apple has the potential to be the very best with no competitor able to go anywhere near their sales mark all they have to do is to drop their product cost by 40 to match their closest competitor
Pirlomerlin said: RIP iPhone
Steve said: awesome great to see the childexploiting company Apple finally begin to suffer
Neil said: What goes up must come down
Nicholas said: Nice to see folks finally objecting to paying the apple-tax