Apple has told iPhone suppliers in China to cut iPhone 5c orders for the fourth quarter following lower than expected demand for the device, The Wall Street Journal reports. Foxconn has been asked to cut orders by one-third, while Pegatron will reduce its shipments by 20%, sources claim.
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Apple’s quarterly profit probably fell for the first time in over a decade, thanks to new products with lower profit margins and a slowing demand for the iPhone, Bloomberg reports. Fourteen analysts have reduced their estimates for Apple in recent weeks, and on Friday, the Cupertino company’s share price fell below $400 for the first time since December 2011.
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.
Apple has reportedly stopped placing Mac component orders after overestimating demand and placing “aggressive” orders at the end of 2012. DigiTimes reports that suppliers haven’t received any information from the Cupertino company to indicate when orders may resume.
Apple’s suppliers are to begin shipping components for the next-generation iPhone by the end of May, ready for the handset’s launch during the third-quarter of 2013, according to sources in the supply chain. As suspected, the device won’t be a major upgrade, the sources claim, but rather a “slightly enhanced” version of the iPhone 5 that’s likely to be called the iPhone 5S.
Apple has begun testing high-resolution television set designs with manufacturing partners in Asia, according to a new report from The Wall Street Journal that cites unnamed sources within Foxconn. Both Foxconn and display manufacturer Sharp are said to be involved in the process, which is still in its early stages.
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.
Following the supply problems Apple has faced with the iPhone 5, the Cupertino company is reportedly woking to ensure that it is better prepared for the iPhone 5S by trialling production way ahead of the handset’s public release. According to one Chinese newspaper, it will begin production of up to 100,000 iPhone 5S units this December.
Itching to get a Retina Mac, but worried the 15-inch MacBook Pro is too big? Well you may not have to wait too long for the 13-inch model. According to one report, Apple’s suppliers have already begun shipping the 13-inch Retina MacBook Pro, and refreshed iMacs ahead of their launch in the coming months.
It seems like Apple’s sixth-generation iPhone will be the first iOS device to boast a brand new, mini dock connector when it launches this fall. But there have been rumors that claim Apple will refresh all its iOS devices to make the new connector a standard across its entire lineup.
Not only does this seem highly unlikely, but there’s one reason why it’s an impossibility: Apple’s supply chain just couldn’t handle a refresh that big.