Apple Reportedly Cut iPhone Orders By 20%

Apple Reportedly Cut iPhone Orders By 20%

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A new report claims that Apple may have cut its iPhone production orders by 20% for the second half of the year. Per CNBC, Brian Blair reveals that Apple likely cut iPhonr orders to around 90-100 Million units -- down from 115 -120 million units.

So, when they make a dramatic change in their forecast, they need to let their suppliers know," he said. "And this is coming from some of our supply-chain work out of China and Taiwan that has let us know, not exactly, but that there's been roughly this kind of a change in their forecast for the period from June to December, about a 20 percent cut in what they've been telling their suppliers to be ready for.

The cuts can be attributed to "slowing growth" in the high-end smart phone market.

The analyst also confirmed his belief that the company will make a low-cost/budget iPhone. It will be "something similar" to the iPhone 4 with a plastic back instead of a glass back, allowing Apple to sell it at a lower cost. He believed Apple will use many of the same components they have in previous years since they can get them at a much cheaper price.

One of the ways they can offer a lower-cost phone is if they do use the same components because those components are over four years old, and they can get them a much cheaper prices, allowing them to sell the phone at a lower cost

Finally, Blair revealed Samsung had hope to sell 15 Million Galaxy S4s but only sold 10 million units.

Read More via BGR

NoGoodNick - July 10, 2013 at 3:51pm
Sometimes these so called "Analysts" make patently STUPID comments. The scaled back the orders because they're gearing up on the next iPhone by scaling back on the OLDER one. This happens EVERY year, so should come as no surprise. It's got NOTHING at all to do with a dropoff in demand, as I'm sure they'll sell a ton of their next phone. The demand for lower cost Samsung phones hasn't lessened the demand for Apple products.
Dan - July 9, 2013 at 9:43pm
Yeah, agree. I'm looking for a bigger screen too. There are other reasons y I might dump my iphone5. Still love their products but I'm loosing interest on the phone. I got my eyes on Samsung.....
Todd - July 9, 2013 at 8:08pm
Well Duh. I am waiting for bigger screen. Thinking of switching to Samsung for older eyes. Helo Apple? Good luck with cheaper iPhone?
Jack black - July 9, 2013 at 4:56pm
Of course they cut orders iphone5s is three months from launch... If I had an upgrade I wouldn't be buying an iphone 5 now
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