Is Apple Cutting iPhone 5 Parts Orders Due to Weak Demand Or Is iPhone 5S Coming Soon?
The Wall Street Journal is reporting that Apple has cut orders for the LCD screens and other parts used in the iPhone 5 in half due to weak demand for the smartphone. Is this due to weak demand or a sign that Apple is readying the successor to the iPhone 5?
When news broke of a report that Apple was cutting orders of iPhone 5 parts based on weak demand it appeared as if Apple was falling from grace in the smartphone world. It sent shockwaves through the tech world since the world has grown used to having Apple always at the top. This news could potentially appear to be the beginning of the end of for the smartphone king or more likely a sign that the iPhone 5 successor is coming sooner than we think.
Apple is expected to be getting ready to launch a low cost iPhone in the near future and also move from its annual cycle of releasing new iPhones and iPads to a six month cycle. If you take this into account, it seems very logical that Apple would cut orders on parts for the iPhone 5 that it launched back in September 2012. The six month cycle would put an iPhone 5 successor debut in around the March timeframe. This timing also goes along with many analysts citing that Apple will launch a fifth generation iPad and second-generation iPad mini in March. Could that also be when new iPhones are anounced as well?
Apple knows it needs to release and diversify its lineup of iOS devices so it can better compete with its rivals by releasing multiple devices at different price points more than once per year. Apple has already set this train in motion when it shocked the world by announcing the fourth generation iPad at the same October media event which saw the debut of the iPad mini. Let's not forget the third generation iPad was released only 6 months earlier. At the event, Apple also made another important move by adding a lower cost iPad to its portfolio to better compete with tablets in the cheaper tablets offered by rivals. Both of these moves were signals to consumers and rivals that Apple is innovating faster and can offer lower priced devices while keeping that best-in-class experience Apple is known for.
Apple historically cuts orders for parts on iOS devices when it is getting ready to launch a new model. This report could simply imply that Apple is not seeing weak demand for the iPhone 5 but is only cutting the ordering of parts because it will introduce the successor to the iPhone 5 sooner than expected. Sometimes reading between the lines can give a more complete and accurate story.