Linked by Thom Holwerda on Tue 15th Jan 2013 09:12 UTC
Apple The New York Times also chimes in on the reduced orders, and they have numbers which seem more realistic. "Apple does appear to be cutting back on orders for its latest iPhone from its manufacturing partners, as Nikkei of Japan and The Wall Street Journal reported earlier. Paul Semenza, an analyst at NPD DisplaySearch, a research firm that follows the display market, said that for January, Apple had expected to order 19 million displays for the iPhone 5 but cut the order to 11 million to 14 million. Mr. Semenza said these numbers came from sources in the supply chain, the companies that make components for Apple products." Some suggest this is stock manipulation, and while that is an exciting story to be sure, would respected and well-informed newspapers like The Wall Street Journal and The New York Times participate in something like that? Somehow, I highly doubt it. A far more logical explanation, as NYT details, is that the iPhone simply isn't doing overly well outside of the US.
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Another possibility
by darknexus on Tue 15th Jan 2013 15:10 UTC
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I've observed, both in my immediate circle of friends as well as others where I live, that many people these days are quite happy to get an iPhone and pay much less for the 4S or even the 4. Not only is the 4S substantially cheaper than the 5 (at least with AT&T) but it's quite capable of running everything the 5 does and retains the old dock connector. Another poster had this right: lots of people own dock accessories and are not willing to pay up front for not only an iPhone 5 but also for all their accessories, assuming they even can (many accessories simply are not available for the 5 yet). Add to this that the 4S came out one year before that, and many people upgraded then. The 5 simply offers no real benefits for those already using a 4S, many of whom wouldn't be eligible for upgrades anyway without paying the full cost of the iPhone. I fall into this category myself, as I have a 4S and am perfectly happy with it. The 5 offers me no compelling reason to upgrade and indeed has a few factors going against it right now. The only thing the 5 would offer me that the 4S does not is connectivity to 5 ghz wi-fi networks and, while that'd be really nice for me at home, it's not worth the upgrade cost for a device that serves mostly as my on-the-go assistant. iPhones for me have always lasted a long time, so they'll probably not see an upgrade from me for another two years at least unless they come out with a radically different iteration of the device that I think would boost its usefulness or my on-the-go productivity. Add to this the fact that Apple generally supports older devices for a decent length of time, unlike some Android OEMs I could mention (ahem, Samsung? HTC?) and the lower demand for the 5 makes perfect sense to me. It's not so good for Apple from a shareholder's perspective, but it's not at all surprising for anyone who follows the smartphone market.

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