Breaking Analysis: Low Demand for iPhone 5 Forces Apple to Reduce Component Orders

• published: 21 Jan 2015
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Video: Breaking Analysis Low Demand for iPhone 5 Forces Apple to Reduce Component Orders What is Apple cutting back on? And in what area are smartphones beating out tablets? Here with his breaking analysis on these latest mobile stories is SiliconANGLE Contributing Editor John Casaretto. # Apple has cut its orders for iPhone 5 parts due to weaker-than-expected demand. People familiar with the situation say Apples orders for iPhone 5 screens for the first quarter have dropped to almost half of what the company had previously planned to order. Are there any other components Apple is reducing orders for? # What does this mean for Apple? # How will this affect Apples component suppliers? # Thursday we spoke with you about Apples decision to become less reliant on Samsung for parts after drawn-out legal battles over patent disputes...Reporting that Apple has already begun buying fewer Samsung memory chips and display screens. Currently, a majority of Samsungs processor revenue hails directly from Apple. How is Samsung dealing with Apples decline in iPhone5 sales and what is their strategy moving forward once all ties are cut with Apple? # John, the iPhone 5 had such strong consumer anticipation followed by a very successful launch. How did this turn around on them in such a few short months and what do you attribute these slowing sales to? # Last Wednesday we spoke with SiliconANGLE News Desk Editor Kristen Nicole about a report from The Wall Street Journal, which said Apple is in the works to create a low-cost iPhone that could come as early as later this year. With waning iPhone 5 interest, and competitors with increasingly lower price points, do you think a low-cost iPhone option could be a crucial move to win back consumer interest? # A recent study has shown smartphones are overtaking tablets when it comes to data consumption among users. ZDNet reported that the study released Monday by R-E-S-O, which specializes in mobile optimization, found that for the first time, smartphones consistently surpassed tablets in mobile data consumption. So John, did the study mention any specific smartphone models that used the most data? # How did this study compare to the study done in 2011? # So what does this mean for mobile carriers? How Is this study beneficial to them? # Michael Flanagan, (R-E-S-O) CTO and author of the study, said It is not going to taper off. Were not going over a hump, were going over a cliff of data consumption, With 4G LTE still in early rollout phases around the country, not to mention the world, in your opinion, do you think the mobile carriers are prepared to support this increasing amount of data consumption? # How can the mobile carriers use the results from this study when it comes to pricing, in terms of subscriber rates for phones versus tablets? # Did the study make any recommendations, as far as how to tackle this rapidly growing data demand? *** Tags: NewsDesk, \Kristin Feledy\, \John Casaretto\, Apple, \iPhone 5\, Arieso ***