Apple iPhone 5 production cut signaling a new product release?

“Investors are always dealing with incomplete information when making investment decisions,” Bill Shamblin writes for Seeking Alpha. “For example, today’s report from the Wall Street Journal that Apple has significantly reduced orders of iPhone 5 screens, and some components for – March quarter seems to be evidence of soft demand for the company’s newest smartphone.”

“The knee-jerk reaction of some investors to this news might be to decide that Apple’s run in the smartphone space is over and cash in their shares,” Shamblin writes. “Here’s the problem: No one outside of Apple knows why these production cuts were made.

MacDailyNews Take: What was that we wrote at 8:40am Eastern this morning? Oh, yeah:

The fact is that nobody outside the top levels of Apple Inc. really knows what’s happening inside Apple Inc. Without knowing when the next iPhone is coming or what Apple’s real plans are, attributing shifts in component orders to “slowing demand” or some other concoction is disingenuous, at the least, and criminal, at the most.

Shamblin writes, “A new iPhone model, perhaps with a new form factor (think Macbook Air vs. Macbook Pro), allows segmentation of a maturing market, helps to better meet customer demand, and increases the frequency of iPhone introductions and thus, eliminates the increasing problems of the iPhone purchase anticipation lag… A reduction in iPhone 5 screen production may be an indication that the company believes an increase in iPhone screen size is a necessary move for emerging markets – again, explaining the decreases in iPhone 5 screen production.”

Read more in the full article here.

MacDailyNews Take: Could be a new iPhone. Could be a seasonal decline in iPod touch units (same screen as iPhone 5). Could be just about anything. But, why would “emerging markets” force an increase in iPhone screen size?

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

34 Comments

  1. why would “emerging markets” force an increase in iPhone screen size?

    Because “USA” easily fits onto the current iPhone screen size, but what about emerging markets such as “Saudi Arabia”, “Afghanistan”, and Jupiter? Those will require a bigger screen.

    1. IGZO could be seen as a reason to increase screen size for Apple – and Apple can still maintain the 10 hour, lead in battery consumption.

      But imagine keeping the same size screen and quadrupling battery-life. Welcome iPhone 5s.

        1. This is not a decsion for, “a man with three feet.” – Lol

          As i mentioned there are two choices which Apple can take by using IGZO.

          1) larger screens YET maintain the set battery life OR
          2) keep it as is – and get more milage

          3) is flexible screens but I believe that will happen fro an entirely different product

          my” Welcome iPhone 5s” – suggests THEY (Apple) will not increase the screen size, and that, valuing the longer batter life is a far more BENEFICIAL choice to customers.

          ofc you read it that way – right?

          However, like the 7.25″ iPad mini – APPLE can decide for themselves what is best. So be SURPRISED!!!

  2. I could see emerging markets wanting larger screen because they may look at their larger phone as being alternative to getting computer/tablet both for price and/or Internet restrictions. Would want tablet with phone service or larger phone. One device replacing many.

  3. stale design and stale os…… its sooo obvious that this ride is coming to an end. Hope you all enjoyed it! Itll be cool again someday to own apple products im sure.

    1. The candy of Android is about the ONLY thing it HAS going for it.

      As a user of Apple and a tester of Android – I honestly prefer consistency and familiarity in a logical simple manner over the craziness I see on Android. Apples IOS/UI is still fresh and clean and it “bridges” the ages… from 2 year olds to 99 year olds, with an the INTERFACE that is easily understood and intuitively usable.

    2. I Agree with “Backstreet”. Apple will be bankrupt in a year and “Backstreet” and I will be camped out overnight in front of Microsoft waiting for the fresh new look of Windows Phone 9. The rest of you losers will still be here reading about Apple’s liquidation and bankruptcy!

      1. Are you really that deluded? Well, ‘backstreet’ is probably a good name, it’s where all the junk deals on knock-off, cheap, crappy products takes place.
        Like Windows Phone 8, that no-one is interested in using, except for little children with the attention span of a goldfish.

        1. @Rorshach

          Agreed. We keep hearing about Apple’s demise, the PC Market is in decline and everyone I know is buying iPads. I don’t understand how people could possibly believe Apple is in decline

      2. Well if that happens, Microsoft will be right beside Apple filing their bankruptcy papers. Haven’t seen a decent product from Microsoft in, well, never actually.
        Better let you get back to your 58 updates from yesterday so you can install the 74 that were released today.

        1. …the reports that Apple is ahead in total number of Apps available is a lie. If you add up all the Apps in the Microsoft Store PLUS all the viruses that are available (those are Apps too), then the score is much closer than we may want to admit 🙂

      3. Ha – oh my…

        A STALE OS?

        Android, is “Scary Smelly’s” Franken-weiner’s, Robo-Rubiens freak-in-mess.

        iOS is updated and solid. And iOS devices are upgradeable. They are familiar and usable by the youngest kids INSTANTLY. And do not intimidate the elderly. ITS a beautiful FRESH and GROWING operating system.

        Android, I will admit has a few cool additions which would be nice in even on iOS. Those innovations would never have come without APPLEs iOS or iPHONE.

        For the most part, Android is still behind AND most things on Android are USELESS eye candy (a different yet refreshing LOOK) yet those CHANGES are not helping the PLATFORM, they are further fragmenting it and confusing users. Those changes are COSMETIC plastic and bad for UI growth.

        Android has become a FRAME work where SONY, SAMSUNG and LG can PAINT their own LOOK… but under STILL it remains a WOUNDED bird. A poorly thought out plan.

  4. Larger screen sizes are hot commodities in emerging markets becuase they use a cell phones for everything. If we didn’t have tablets and PCs, a larger screen would be essential for us too.

  5. If all these news items are false, why does not anyone at Apple come to the rescue and say so. Doesn’t the board owe it to us shareholders? I am afraid the news is right. There is a pall here in Cupertino today. You can feel it in the air.

    1. No, your FUD doesn’t become more credible by claiming the handle of “CupertinoJoe” and making claims about empty Starbucks outlets, just like Joe Scarborough doesn’t become an authority figure because his TV show is named “Morning Joe” and has Starbucks as an advertiser.

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