Apple's iPhone 5 Production Cut Not Because Of Sales Decline

By Shailesh Shrivastava email: s.shrivastava@mobilenapps.com | Jan 15, 2013 06:37 AM EST

Share This Story

  • Print
  • Email

Apple's share prices witnessed a steep fall as rumors suggested that the Cupertino-based company has cut down the supply order for iPhone 5's components by almost 50 percent. The rumor was seen as a 'news' and the investors developed a cold feet suspecting the tech-giant's popularity decline.

Follow us

When the rumor was creating ripples across the tech and business world, at the same time, some of the analysts saw Apple's move as a quality building measure.

According to a report by Apple Insider, Mark Moskowitz of J.P. Morgan said that the reports of Apple facing are just "more noise" that will fuel an investor overreaction.

"In our view, the potential order cuts are a direct result of manufacturing yields improving following the fast-and-furious product roll-outs of the iPhone 5 as well as new iPads and Macs," Apple Insider quoted Moskowitz as saying.

"The bigger message related to any potential order cuts could be that iPhone 5 manufacturing yields and thereby gross margin are on the rebound," Moskowitz was quoted by Bloomberg.

At the same time, other analysts said that the production cut of the iPhone 5 is not new news, and they had already predicted this in December by cutting down the iPhone 5's sales estimate.

If we go by the figures available so far, Apple is in a good condition with a robust demand for iPhone 5. At the launch of the device it had double of the pre-orders iPhone 4S had on its launch day. The iPhone 5's pre-orders were above two million.

When the smartphone was launched in China in December 2012, the sale had touched a record 2 million figure in just three days. "Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China," Tim Cook, Apple's CEO, had said in a press release. "China is a very important market for us and customers there cannot wait to get their hands on Apple products."

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

Join Our Conversation

Smartphones
Amazon Fire Phone $199 unlocked Amazon Fire Phone 32GB unlocked now just $199, includes one-year Prime membership
Sony Xperia Z4, Xperia Z4 Ultra to debut at CES 2015: Leaked specs
Moto X (2014) Cyber Monday deal: $0.01 on-contract with Verizon, $359 unlocked, 30% off accessories
Verizon-bound Motorola Droid Turbo gets blue color option on Best Buy
Tablet / Laptop / PC
Dell Venue 7 and Venue 8 Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon Logo Amazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC Logo HTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google Downtime Google blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Flipboard for Windows Phone Flipboard for Windows Phone finally available, but requires 1GB of RAM (VIDEO)
Vine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics