Apple Inc. has cut its orders for components for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday.
Apple’s orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.
The Cupertino, Calif., company has also cut orders for components other than screens, according to one of the people.
Boldfaced emphasis added by me.
Is this the harbinger of Doom I’ve been expecting?
I just don’t know.
Samsung and others have been savaging Apple with appealing new form factors — especially the “phabulous” Galaxy Note — and higher-resolution screens. (Jon Ive can tout how the iPhone 5 is shaped for a human hand all he wants — Galaxy Note owners apparently don’t give a damn about that.)
But still, those are Android. Where are all the apps that iOS has?
If it’s true people with Android phones tend to use far fewer apps than iPhone users, then that huge iOS app library just doesn’t matter to them.
We haven’t seen Windows Phone sell in any significant numbers versus Android, either, so it’s not competition from that.
I’ll be worried when I see reports of Apple cutting iPad component orders by fifty percent. I think that would presage Doom.
Although with Archos coming in to attack Apple with its Titanium and Platinum tablets, maybe that component order cut is simply inevitable.
One thing, though. Now I think we know why Apple allowed Walmart to slash prices on the iPhone back in December. All of us should have seen that as a sign.
Update: BGR out-thought me, noticing this key fact:
But Apple uses the same new display type for both iPhone 5 and the latest iPod touch. Neither WSJ nor Nikkei addressed this, however — both seem to be referring to just iPhone 5 displays.
It makes some sense now. With the iPod Touch going for $299 and $399, it’s more likely that people bought the $329 iPad Mini instead, cannibalizing projected iPod Touch sales.
Doom is once again averted.