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Apple shares hit by weak demand for iPhone 5

Industry Sector

Telecommunications

Published

14 January 2013

Author

Matt Bodimeade

Type of News

Market

Shares in technology giant Apple have fallen by more than 3% after reports suggested orders for its iPhone 5 had been lower than expected.

Apple is reported to have halved its orders for the display panel featured on the phone for the January to March quarter. The reports have heightened fears that demand for Apple's iPhones has fallen in the wake of increased competition.

The move is seen by analysts as a sign that new iPhone sales have been worse than expected as demand wanes.

Apple, the world's most valuable technology firm, has been facing increased competition from Samsung and other makers of smartphones that run Google's Android operating system.

Earlier on Monday, Samsung said that global sales of its flagship Galaxy S smartphones had topped 100 million since the first model was launched in May 2010.iPhone 5

Android devices accounted for 75% of smartphone shipments the three months ended in September, up from 58% at the same time in 2011, according to research firm IDC. The iPhone's share stood at 15% in September, up from 14% the previous year.

Google says more than 500 million Android devices have been activated since the software's release four years ago. By comparison, Apple had sold about 271 million iPhones through last September.

Analyst firm Strategy Analytics has forecast Samsung will sell 290 million smartphones in 2013 compared with iPhone sales of 180 million.

For more information on the Apple iPhone 5, see the latest research:

The Significance of Apple iPhone 5 Launch and Its Impact on Global Smartphone Market

Apple iPhone 5 Product Strategies and Key Component Suppliers

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Visitor Comments

All posts are pre-moderated and must obey the house rules.

Peter Mchardy

703 Days ago

Citing "people familiar with the situation," reports that Apple cut its order for iPhone 5 screens for the January-March quarter "by roughly half of what the company had previously planned to order." Then surely this article could just be pure speculation?

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