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rogerrobie68
This would still be happening if Steve Jobs had not died.....
rogerrobie68
good catch
Apple reportedly cuts back iPhone 4S orders
Sylvie Barak
11/9/2011 8:30 PM EST
SAN FRANCISCO--Apple Inc. may be cutting back on orders of components and parts for its latest iPhone 4S, due to weaker demand and shortages in the supply chain according to Chinese media reports.
Chinese-language Commercial Times said its sources in the iPhone 4 supply chain were claiming Apple could even cut its shipments of both iPhones and iPads from suppliers by as much as 10-15 percent in the fourth quarter, as strong pre-sale figures taper off.
The move will apparently impact Apple’s manufacturing partners, like Hon Hai Precision Industries Co. as well as component suppliers from case makers to camera builders.
The reports added that Apple’s decision would also impact global chipmakers, who have apparently indicated that their revenues could drop by a matching 10-15 percent as a result of the ordering adjustment.
Back in September, JPMorgan Chase & Co. released a report saying Apple would be cutting orders to vendors in the supply chain for its iPad tablet, which is said to have affected Hon Hai’s sales figures.
Similarly, Taiwanese outlet DigiTimes has also reported that several other Taiwan-based component makers had also seen October revenues drop as a result of reduced orders from Apple.
The reported cuts come at a time of increasing macro-economic hardships, with dozens of firms announcing they will be tightening their belts and preparing for a tough end of year quarter. Analysts have pointed out that Apple’s strategy has been to reduce inventory, so as not to be caught out by a lack of consumer demand.
“The bad economy will also have an impact on Apple,” said local Taiwanese tech commentator Sascha Pallenberg, adding that the initial rush on iPhone 4S phones could be attributed to Apple’s hardcore fanbase, as well as those upgrading their existing contracts with their telcos.
Since the iPhone 4S launch, however, Pallenberg points out that Google and Samsung have announced the Nexus S, Motorola has announced its Razr, Nokia has come out with new Windows phones, and Nvidia just rolled out its Tegra 3 chip, said to be headed for HTC phones very soon indeed.
“All these platforms look pretty competitive. Apple has never had such a tough competition and it won't get easier,” noted Pallenberg, though he said he remained confident Apple would still manage to post a record quarter.
"Apple is facing unprecedented competition and the world economic problems continue to hold down demand for products in this class," confirmed analyst Rob Enderle.
"Given the market conditions, it wouldn’t surprise me that Apple is pulling back, but Apple is typically hit last, suggesting if they are feeling it, others are likely feeling it more," he said. "This could be an early warning for the tech segment."
Chinese-language Commercial Times said its sources in the iPhone 4 supply chain were claiming Apple could even cut its shipments of both iPhones and iPads from suppliers by as much as 10-15 percent in the fourth quarter, as strong pre-sale figures taper off.
The move will apparently impact Apple’s manufacturing partners, like Hon Hai Precision Industries Co. as well as component suppliers from case makers to camera builders.
The reports added that Apple’s decision would also impact global chipmakers, who have apparently indicated that their revenues could drop by a matching 10-15 percent as a result of the ordering adjustment.
Back in September, JPMorgan Chase & Co. released a report saying Apple would be cutting orders to vendors in the supply chain for its iPad tablet, which is said to have affected Hon Hai’s sales figures.
Similarly, Taiwanese outlet DigiTimes has also reported that several other Taiwan-based component makers had also seen October revenues drop as a result of reduced orders from Apple.
The reported cuts come at a time of increasing macro-economic hardships, with dozens of firms announcing they will be tightening their belts and preparing for a tough end of year quarter. Analysts have pointed out that Apple’s strategy has been to reduce inventory, so as not to be caught out by a lack of consumer demand.
“The bad economy will also have an impact on Apple,” said local Taiwanese tech commentator Sascha Pallenberg, adding that the initial rush on iPhone 4S phones could be attributed to Apple’s hardcore fanbase, as well as those upgrading their existing contracts with their telcos.
Since the iPhone 4S launch, however, Pallenberg points out that Google and Samsung have announced the Nexus S, Motorola has announced its Razr, Nokia has come out with new Windows phones, and Nvidia just rolled out its Tegra 3 chip, said to be headed for HTC phones very soon indeed.
“All these platforms look pretty competitive. Apple has never had such a tough competition and it won't get easier,” noted Pallenberg, though he said he remained confident Apple would still manage to post a record quarter.
"Apple is facing unprecedented competition and the world economic problems continue to hold down demand for products in this class," confirmed analyst Rob Enderle.
"Given the market conditions, it wouldn’t surprise me that Apple is pulling back, but Apple is typically hit last, suggesting if they are feeling it, others are likely feeling it more," he said. "This could be an early warning for the tech segment."
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goafrit
11/9/2011 10:05 PM EST
The end of Steve Jobs era - the magician is gone and we hope Apple does not go in flames.
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rogerrobie68
11/18/2011 2:18 PM EST
This would still be happening if Steve Jobs had not died.....
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SylvieBarak
11/10/2011 2:57 AM EST
Well, you can't really blame the bad economy on the death of Steve Jobs, goafrit. It's tough for most companies out there at the moment, and I'm sure Apple is still doing absolutely fine. The firm seems to just be taking precautions so as not to get saddled with excess inventory while consumers are having to pinch pennies. It's tough all round.
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RobDinsmore
11/10/2011 10:35 AM EST
Actually I hope Apple does "go in flames." More competition is better for the industry. If tablets and phones from other companies finally gain some traction it will mean cheaper devices that more people buy, meaning more chips sold, more software sold, etc. Apple right now takes a huge chunk of that pie, which is great for them, but only good for their partners and actually bad for their consumers.
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sharps_eng
11/10/2011 5:07 PM EST
Exactly what has apple done that you despise? I kept an open mind for years and when I finally got to use iPhones and MacBooks they are just another computer. Good ideas yes, nice style, yes, worth the money? Yes if you have it, no if you don't. Like anything else really.
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dsc
11/11/2011 10:19 AM EST
If you like other products, buy those. There is definitely competition in the industry. The reason Apple has done well is because they made a high quality product that people liked. But, other companies have all rights to do the same. Those that make something good will gain traction. The market is pretty efficient and will figure out what's good and what's not.
As for cheaper products, there are plenty to be had. But its not necessarily the best thing to devalue the high end.
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chanj
11/10/2011 12:14 PM EST
A company is build to last. I am sure Steve Jobs has this vision in mind when he build Apple Computer. It would be really difficult to believe Apple would fall after Jobs passed away.
Towards the end of the article, the author gives a pretty good explanation - due to competition and bad economy, Apple is pulling back.
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Frank Eory
11/10/2011 5:37 PM EST
I guess I had better get those iPhone 4s orders placed soon, while I can still get them!
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hm
11/10/2011 7:54 PM EST
Is this precursor to long awaited iPhone5? Apple may get different parts for iPhone5.
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rogerrobie68
11/11/2011 3:11 PM EST
good catch
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