iPhone 5 (black, left angled, display 001)

Last week, a couple of reports surfaced claiming that Apple has been trimming component orders for its iPhone 5. While the exact reasons for the cutbacks are still unknown, many market-watchers are citing weaker-than-expected demand as the main factor.

But no matter what the reasoning is, it seems the cuts are happening. Another report popped up this weekend claiming that the Cupertino company has contacted Sharp Corp. and asked them to cut their iPhone 5 LCD panel orders in half for next quarter…

TechCrunch points to the report from Japanese newspaper Sankei Biz (via rough translation from Google):

“He reported demand last week, Apple launched in September last year of the “iPhone 5″ as being lower than expected, some U.S. media, Apple has reduced the amount of orders for parts than originally planned.

Sharp LCD screen, such as supply, the amount of that order was only about half of the plan in particular.

Apple declined to comment on this.”

Earlier this month, both The Wall Street Journal and Reuters reported similar stories, claiming that Apple has contacted suppliers and asked them to cut component orders for the iPhone 5. Both of them also named Sharp specifically, as well as the 50% figure.

In addition to the iPhone part cuts, we’ve heard that Sharp has nearly halted production of 9.7-inch screens for the iPad, due to a shift in demand to the smaller iPad mini. And LG’s panel output for Apple’s tablet has also fallen since last quarter.

So what does this all mean? Nothing yet. Analysts are still expecting Apple to announce that it sold in upwards of 50 million iPhones, and 20 million iPads during the holiday period, which would both be records for the company. The true test will come next quarter.

  • Siv

    The beginning of the end…

    • i think we are all dead already and dot even know it.. and even in the after life android still suuuuucks…

  • Apple needs to make the iPhone 6 revolutionary for higher than expected sales.

    (Don’t hate on my comment, I own lots of Apple products)

    • Don’t get me wrong , ios is awesome and it will be always, it is the people mindset that changes , they think iphone is now old thing and android and windows phone are new fashion, partly apples fault becoz not seeing them as competitor and ignoring them .but I agree apple need changes not in UI but in restriction for developers , let them allow for to create themes and tweaks for us and let them install to ios.

      • Kurt

        ios is a grid of icons. that doesn’t make it awesome. watch some videos about other mobile oses, ios is made for grandmothers so its easy to use which means it lacks features. what can ios do? launch apps, and lots of great third party apps. um what else? it has notification system, umm icloud, siri. and thats about it. i won’t be switching to android, maybe, but most likely to windows, but i watched a few videos on galaxy note 2. i was impressed. it blows ios and iphone away. pretty pathetic when apple fanboys act like ios is the best. its not. its not in second either.

      • yup….. but no android and no windows.. i will keep my jailbroken devices

    • wont happen..

  • Chliii

    Market saturation and early production of the “5s” with the new igzo screen. That’s all

  • Hey i know this is off topic but i want to ask do u know why i keep on getting “Your purchase cannot be completed” when im trying to buy itunes gift certificates thx. Maybe theres a limit of buying itunes gift card? Thx

  • its called christmas is over so demand obviously wont be as high. plus they are getting ready to make the next iphone

  • Apple is cutting down on panel orders because they are changing the company they order panels from to another company.

  • iOS 6 hasn’t changed or made any significant UI updates since 2005 when it first came out. iOS on the original iphone looks like it does on the iphone 5. They need to update the look and features. One is, quick reply to text messages. PLEASE add this feature, it will make iOS 50% better.