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iPhone 5 demand has not dropped, say analysts
Demand for the iPhone 5 has not dropped, say analysts, despite reports that Apple has cut its component orders.
Earlier this week it was reported that Apple has cut orders for iPhone 5 components because of weak demand. However, analysts have suggested that might not be the case.
Shaw Wu, an analyst with Sterne Agee, told investors that "as far as we can tell, iPhone 5 demand remains robust".
He said that Apple's component order change could be due to "much improved yields meaning lower component builds and supplier shifts".
His view was echoed by Mark Moskowitz, of JP Morgan, who said the "order cuts are a direct result of manufacturing yields improving following the fast-and-furious product roll-outs of the iPhone 5 as well as new iPads and Macs".
William Power, a Baird analyst, said he was raising his forecast for iPhone sales in the final months of 2012. He added that "most demand indicators remain favorable",
The report, from Japanese financial news service Nikkei, that Apple was cutting orders from the companies that manufacture iPhone 5 screens, sent Apple shares down below $500.
Apple has been under increasing pressure from rival Samsung, which announced earlier this week that it had sold 40 million of its flagship Galaxy S III smartphone in the seven months since it launched.
It's possible, however, that Apple will announce next week that the iPhone 5 has outsold the Galaxy S III in just three months. The company is due to report its earnings for the final three months of 2012 (which the company calls Q1) on January 23.
It is expected to announce sales of between 43 and 63 million iPhones for the quarter, according to analysts.
Recent rumours have suggested that Apple is planning to release an additional iPhone model this year, which would help the company compete with cheaper smartphones powered by Google's Android operating system.
Speculation has suggested that the phone would be similar to the current model but would have a cheaper polycarbonate plastic case, rather than the glass or aluminium bodies of the iPhone 4S and iPhone 5.
Phil Schiller, Apple's marketing chief, told a Chinese newspaper that "despite the popularity of cheap smartphones, this will never be the future of Apple’s products."