During Apple’s Q1 2013 earnings call, CEO Tim Cook addressed recent reports regarding iPhone order supply cuts overseas. Publications like The Wall Street Journal recently claimed that Apple has significantly slowed iPhone production, causing rampant speculation that demand has been weakening. Apple’s stock has slid since the rumors started picking up steam earlier this month.
Today Cook threw cold water on the idea of Apple cutting its own orders. “It’s good to question the accuracy about any rumor regarding build plans.” Cook said that it would not work to use these order cut “data points” to try to interpret what is happening inside Apple. This is mainly because the supply chain is so complex, and Apple deals with multiple providers that face different constraints. “There’s an inordinate list of things that would make any single data point not a great proxy for what’s going on,” said Cook.
iPhone 5 supplies “were very constrained” for much of the quarter, however, and iPhone 4 supplies were surprisingly constrained for the entire quarter. But that’s because of high demand, not a lack thereof.
When asked about the possibility of an even larger, 5-inch iPhone screen size, Cook said, “We put a lot of thinking into screen sizes, and we believe we’ve picked the right one.” It’s all about if you can hold it comfortably in one hand.
So basically, the iPhone is doing fine… at least according to Apple.