There is no doubt about the fact that Apple is facing a weird time nowadays. On one hand, we have had reports about Apple witnessing one of its best last quarters. The sales of the iPhone 5 have broken all previous records – and on the other, we ALSO have reports that the iPhone is facing slow demand. In fact, in the last quarter, Apple also managed to overtake Samsung in the US Smartphones market.
Anyway, we have fresh reports that say that Apple is cutting down on component orders for the iPhone. This, if true will be the second time in as many months that Apple would cut component orders for the Jesus phone. Last time round, the company had cut orders for the iPhone 5 display by as much as 50 percent. This was seen as a sign that Apple is seeing a dip in the demand for the iPhone. Apple shares slid as soon as news regarding this came out.
Barely a month later, we have similar news coming in from The Wall Street Journal. Interestingly, this if true would support the forecast by UBS Analyst Steven Milunovich who had back in January said that Apple would be facing many challenges in being able to continue selling the iPhone or the iPad at the same rate as they have been over the past few years. He had also back in December cut down 2013 sales estimates of the iPhone by 5 million units – per quarter. In case of the iPad, he cut sales estimates by 2 million units -again for each quarter.
Apple’s major adversary in the smartphones space, Samsung has been breathing down Apple’s neck for the last few quarters – and even with Apple’s recent overtaking of the Korean giant, the Samsung juggernaut seems too big to be stopped even by Apple.