Remember when everyone could get a new iPhone on release day regardless of when their contract was set? I do … That’s changed and now we are all back to the standard mobile upgrade cycle. Price matters.
Apple’s orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.
The Cupertino, Calif., company has also cut orders for components other than screens, according to one of the people.
Apple notified the suppliers of the order cut last month, the people said.
The move indicates that sales of the new iPhone haven’t been as strong as previously anticipated and demand may be waning. It comes as the company has been facing greater challenges from Samsung Electronics Co. 005930.SE +1.24% and other makers of smartphones powered by Google Inc.’s GOOG -0.20% Android operating system.