Tech Talk: Is Demand for Apple Products Decreasing?

January 14, 2013  |  

The Wall Street Journal reports that Apple has cut back on its orders for iPhone 5 parts, a possible indication that demand for the company’s latest smartphone is less than expected.

According to two of the WSJ’s sources, as of last month, orders for the iPhone 5 screen and other components have dropped to about half of what Apple had planned to order for the first quarter 2013.

For the 12 weeks ending November 25, 2012, iPhones accounted for 53.3 percent of smartphone purchases, up from 35.5 percent in 2011. Android sales dropped to 41.9 percent from 52.8 percent a year ago, according to data from Kantar Worldpanel ComTech.

But while 2012 may have been a good year for Apple and the iPhone 5, other smartphone manufacturers, including Samsung and Nokia, are already having a stellar 2013. Samsung announced it has sold 100 million Galaxy S smartphones, while sales of Nokia devices exceeded expectations for the fourth quarter of 2012.

Apple is dealing with increased competition from the Android market, which often features cheaper smartphone devices. Despite rumors that Apple is considering a cheaper version of the iPhone, the rumors of decreased demand overall made Apple’s stock price drop in pre-market trading Monday morning.

How many people out there have the iPhone 5?

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