iPhone 4S production supposedly slashed over demand/supply issues

Nov 9, 2011
8

Apple has reportedly cut iPhone 4S and iPad 2 orders for Q4 2012 and Q1 2012, amid lower than expected smartphone sales and key component shortages, according to supply chain leaks. Weak demand for the iPhone 4S in North America and Europe are part of the issue, Chinese paper Commercial Times reports, with suppliers of elements like the complex multi-lens system used in the smartphone told that Apple will not be needing as many as previously suggested.

Meanwhile, what's described as iPad 2 "short-term market saturation" has supposedly led Apple to cut orders of its tablet, too. The recent Taiwanese flooding is also believed to have had an impact on certain components Apple relies on, forcing the company to reduce orders of other iPhone and iPad parts so as to match its potential production.

Apple has already reported strong initial demand for the iPhone 4S, with more than 4m of the smartphones selling in the first weekend of availability. However, according to the report, further pre-sales have been less impressive. The second round opened in October, for 22 countries, while the third round began earlier this month; reports suggested Apple's Hong Kong pre-order stock was exhausted in a mere 10 minutes.

That could suggest component shortages not demand is the real issue, though Apple is unlikely to comment either way.

[via DigiTimes]


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