Order Cutbacks Due To iPhone 5 Being Initially Too Popular To Maintain [Report]


Apple iPhone

Earlier this week we heard reports that Apple is cutting back on the number of iPhone 5 parts they’ve ordered. Some felt that it was a sure sign that Apple is slipping and that the iPhone isn’t as popular anymore, while others have said everything’s just fine.

A new report claims that the iPhone 5 orders aren’t getting cutback because it’s not popular anymore, but that it was initially too popular for Apple to sustain.

Market research firm DisplaySearch told CNET that the iPhone 5 cutbacks aren’t a negative indication on the device’s popularity. Paul Semenza, senior vice president at DisplaySearch had the following to say about the iPhone 5 cutbacks:

“We started hearing indications of cutbacks before the new year. It was a very quick ramp up. The Q4 [estimate] was originally about 61 million displays [for the iPhone 5]…that may be dialed back, but anything near that number is still huge. That would support the theory that the ramp was too much to sustain.”

Shipments of the iPhone 5 in the first quarter of sales are far above initial sales for the iPhone 4S, so it’s not like the iPhone is losing in popularity. Maybe it’s not growing as rapidly as it once had, but sales are still estimated to be in the 33 million to 42 million range.

Source: CNET