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Analysts: Demand for iPhone 5 Still High

Analysts have said that even though Apple cut its orders for components the demand for the iPhone 5 has not dropped

Analysts have said that even though Apple cut its orders for components the demand for the iPhone 5 has not dropped

January 16, 2013 – Analysts have said that even though Apple cut its orders for components the demand for the iPhone 5 has not dropped. Earlier in the week, a report said that Apple had cut its iPhone 5 components orders because the demand for the smartphone was not strong.

Analysts however are saying that is probably not the case. One analyst said that as far as he can see, the demand for the iPhone remains robust. One reason, he added, that the components order was changed could be because of better yields meaning – less supplier shifts and component builds.

Another analyst agreed saying that cuts in orders are directly influenced by yields in manufacturing improving following roll outs that were hurried for the iPhone 5 along with the new Macs and iPads.

The report from Nikkei, the Japanese financial news service that the tech giant had cut its orders for components caused shares of Apple to fall below $500 earlier in the week.

More pressure has been placed upon Apple by rival Samsung after the South Korea smartphone maker announced this week it sold more than 40 million Galaxy S III smartphones over the first seven months in the market.

Next week Apple is due to report its first quarter earnings for the last three months of 2012. Some believe it may report that its iPhone 5 sales were higher in three months than the Galaxy was in its first seven months. Analysts believe sales of the iPhone 5 will be between 42 and 62 million for the quarter.

Some rumors have been swirling that Apple may release another iPhone during 2013 to help it compete with smartphones that are less expensive, powered by the Android operating system by Google. Speculation suggests that the new phone would be similar to the existing model, but would have a less expensive plastic case instead of aluminum or glass.

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