Decline in iPhone 5 Parts Expected?
Recently, numerous websites–this one included–breathlessly reported that there has been a massive decline in orders for parts for the iPhone 5. While the reports are absolutely true, it also appears that the decline was planned for and are not cause for alarm, nor are the reports an indication that anything is amiss at Apple.
MarketWatch reports that two analysts, each at separate firms, reported that estimates for declines had already been released by Apple, and there have been no further slowdowns.
Although the industry could rightfully be considered about what appears to be a extremely reduced demand for the latest model of the best mobile device in the world, the fact that Apple was transparent about the expected decline speaks volumes.
Indeed, the Washington Post called the reports “exaggerated,” and a recent article cites an analyst who said, “The actual order cut for iPhone 5[S] in the first quarter is exaggerated…[t]he large cut for displays is mainly due to the over-purchase of displays in the fourth quarter.”
That analyst, BOCI Research Ltd.’s Tony Yang, is also cited in the article as pointing out that rumors of a massive drop in iPhone 5 orders don’t appear to be substantiated.
Shaw Wu, a Sterne Agee analyst, wrote to investors that the decline in demand is due, in part, to “much improved yields meaning lower component builds and supplier shifts.”
“As far as we can tell, iPhone 5 demand remains robust,” Wu continued, confirming what true Apple fans know: demand for an iPhone will never truly die.
Let us not forget that the iPhone 5S, which Yang alluded to, is said to be due later this year, and numerous reports put the iPhone 6 in the development and testing stages.
Those who were concerned that Apple is in some sort of trouble can apparently rest easy; the decline in orders for parts seems to be expected, perhaps in preparation for future iPhone models. After all, iPhone fans enjoy the privilege of a new model being available most every year since its release.