Apple’s hard-to-meet high standards and its low price expectations have earned it the nickname “Poison Apple” with Asian suppliers, who say they are feeling the affects of decreasing demand of the iPhone. Several have told Reuters that they are trying to reduce their reliance on Apple amid increasing competition from companies like Samsung.
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The iPad mini is still less than six months old, and already demand has dropped as fans await the second-generation model. That’s if you take any notice of DigiTimes, which is reporting that iPad mini shipments will decline by as much as 30% during the second quarter of 2013 due to dying demand.
AU Optronics, a display manufacturer that produces panels for the iPad mini, has reportedly caught up with its orders following poor yield rates during the second half of 2012. The company has produced one million displays for the device, according to industry sources, and it has now begun work on its next project — a new display for the next-generation iPad mini.
Apple stock took a battering this week when it was reported that the iPhone 5 wasn’t selling as well as the Cupertino company had expected it to, and it appears analysts aren’t going to let it recover just yet. JP Morgan analyst Mark Moskowitz is now reporting that iPad sales won’t meet expectations due to supply constraints during the fourth quarter of 2012.
Earlier this week, The Wall Street Journal reported that Apple has cut its iPhone 5 component orders by as much as half following “weaker-than-expected” demand for device. The news sent Apple’s stock price plummeting, but according to some analysts, there’s nothing to worry about. iPhone 5 demand is doing just fine, according to Sterne Agee’s Shaw Wu, and the component cuts are in no way related to poor demand.
Apple’s share price has plummeted this morning, following an earlier report that said the Cupertino company had cut iPhone 5 component orders due to weaker-than-expected demand. When the market opening on Monday morning, Apple stock dropped to $16.23, or 3.1%, to $504.07.
Productions rates for the iPhone 5 are improving, supply sources claim, just in time for the handset to make its debut in more than 50 additional markets throughout December. Now that Apple has caught up with demand, the handset’s shipping delay has been reduced from four weeks to just 2-4 business days. Suppliers now expect the Cupertino company to sell 45 million iPhone 5 units during the fourth quarter alone.
As you may have noticed, Apple announced the iPad mini today. Soon after, of course, came the analyst perspective – if there’s a strong demand for the iPad mini device, we may see serious supply issues. This has been rumored already in regards to the aluminum back for the new iPad mini, but this is the first report that a shortage of display units may also have a role to play.
“We’re now starting to see the issues that [Apple] is having with Samsung,” said Richard Shim, an analyst at NPD DisplaySearch, in an interview with CNET.
Samsung is not supplying displays for iPad mini, according to the analyst, which leaves only two suppliers to make the smaller iPad mini for Apple.
Apple’s new iPad is still selling like hot cakes, and new customers continue to face a 1-2-week shipping delay when purchasing through the Apple online store. But the company is reportedly struggling to meet demand with production constrained by Retina display supply and the recent cuts to factory worker overtime at Foxconn.
Those who are lucky enough to be living in one of the ten initial launch countries for Apple’s new iPad are now facing a shipping delay of up to three weeks for the device if they order now. But demand hasn’t stopped the Cupertino company from continuing the tablet’s worldwide rollout as planned.
Apple confirmed today that the new iPad will be available in a further 25 countries from March 23.