Remember all the excitement leading up to Apple introducing the iPhone 4 for CDMA networks, such as Verizon? Well, just as Christmas Eve tension leads to Boxing Day blahs, so goes demand for the CDMA iPhone. A new report suggests the Cupertino, Calif. company has cut in half its orders for the CDMA iPhone 4 this year.
Pegatron, which was expected to ship 10 million CDMA iPhone 4s in 2011, now may only make half that number. “Volume is estimated to drop to only five million units,” a Taiwan-based industry publication wrote Thursday, citing “upstream component makers.”
If the DigiTimes report is accurate, the slowdown in order requests means Apple plans to sell about 1 million of the handsets each quarter until it unveils the iPhone 5, compatible with both CDMA and GSM wireless networks. The iPhone 5 is expected to begin shipping this September.
Apple has already shipped more than 3 million CDMA iPhone 4s during the first three-month period of 2011 – 2.2 million going to Verizon and the remainder either restocking empty shelves or exported to international carriers.
The reasons for the slacking interest in the CDMA-only iPhone 4 are varied. Although iPhone owners liked the idea of having a choice other than AT&T, reviewers quickly pointed out that the Verizon CDMA network was slower than the initial GSM network. Additionally, besides being available on Verizon, the CDMA iPhone 4 didn’t offer features or services vastly different than the iPhone 4 already available through AT&T.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
14 responses to “Rumor: Apple Cuts CDMA iPhone 4 Orders in Half Amid Slowing Demand”
I have waited to purchase after that initial rush… However, with the way Verizon has become so money hungry, I will wait to purchase one (iPhone 5) when my contract is eligible for upgrade… It’s ridiculous that they did away with the “New Every 2” program… Now, even if I have the discount eligible, I still pay $199 for the iPhone… I did however, purchase my wife an iPhone and she’ll receive it today… I’ll decide whether or not I’ll purchase an iPhone when it’s time for upgrade after playing with her iPhone… I do own an iPad, an iMac, an iPod, and lots of Apple Stock… I love Apple and their products I just think they are way too obnoxious with pricing and greedy…
Well that is certainly a contradiction to this:
Verizon iPhone Surge Yields First Slip in Android U.S. Sales Share in Two Years
http://www.macrumors.com/2011/…
I have a hard time believing any Taiwan publication considering that any given rumor about Apple is right less than 50% of the time. Many thought that the Verizon iPhone wasn’t selling well until Verizon released their numbers and they sold 3 million iPhones.
CDMA is doomed. The only reason for its existence is Verizon and some Asian countries. It’s old technology that holds back functionality.
I wouldn’t be surprised if the iP5 will be the last iPhone to support CDMA, if it does…
Apparently they’re sick of the home button too, looks like.
It’s not surprizing that Verizion has not been selling as many iphones as exspected everytime I’ve gone in to talk to a salesman about buying a iphone they’ve tried to talk me out of buying it. It is bad, the apps cost a lot, there is no returns, just one thing after another. Going down to the Apple store tomorrow, should be able to buy my white iphone there without being talked down to like I know nothing about the iphone.
“Boxing day blahs?” Just how much royal wedding coverage have you been watching?
The most telling point is that Big Red got the iPhone 4 in the middle of its cycle (although it may be a little more generous if the iPhone 5 doesn’t come out until Sept.).
People would rather wait for the iPhone 5, and get it when it’s brand new, rather than the middle of a cycle with the iPhone 4. It’ll be interesting to see how Verizon and AT&T compare when they both get a new iPhone model at the same time.