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  • chin_music chin_music Jan 13, 2013 11:25 PM Flag

    READ ABOUT SUPPLY CUTS ON THE 4S - 11/2011

    Excerpt from the article followed by full article:

    "What’s interesting is that comparable reports appeared in the past as well and the experts considered that Apple has a habit of pre-ordering a large amount of components in order to make sure that they have sufficient devices available in case the demand is very high. After they estimate the realistic sales they obviously need to cut back on the orders. Until now nobody knows if this is the same case, or people just don’t buy as many Apple products as they expected."

    Apple Cuts Down iPhone 4S Orders Due To Weak Demand
    By Marius MariaNovember 10, 2011CellPhones




    Apple had a real sales boom when they launched the new iPhone 4S as they manage to sell more than 4 million devices only in the opening weekend which is pretty incredible. Furthermore, the Apple officials stated that more and more customers are using their new operating system meaning iOS 5, and it’s the same story with iCloud.

    Excited about these numbers, Apple decided that the iPhone 4S should be launched in over 90 different countries thinking that they would have the same results. The newest report shows otherwise and the company is anticipating a sale slowdown in the fourth quarter of 2011. A new report appeared on DigiTimes says that Apple has cut a major amount of orders with the component suppliers. The sources of the report are not clear yet, but they claim that Apple will no longer produce as many smartphones as before. It looks like Apple had great sale expectations in many countries, but the numbers show a lower demand in the fourth quarter of 2011 and in the first quarter of 2012. Therefore, Apple doesn’t need all the components which they first ordered and have to renounce them.

    What’s interesting is that comparable reports appeared in the past as well and the experts considered that Apple has a habit of pre-ordering a large amount of components in order to make sure that they have sufficient devices available in case the demand is very high. After they estimate the realistic sales they obviously need to cut back on the orders. Until now nobody knows if this is the same case, or people just don’t buy as many Apple products as they expected.

    Some of the analysts estimate that over 4o millions iPhones could be shipped by Apple in the last months of 2011. Surely the iPhone 4S is one big reason why the demand seems to be so strong. However, Apple expected a lot more of the iPhone 4S to be sold and that’s probably why the components orders have been decreased, because the device is not meeting their high expectations. Consequently, the numbers that the analysts estimated appear to be more and more improbable. And if we take in consideration the sales that Apple had in the past which never exceeded 17 million devices, the 40 million iPhones sold in a quarter remains just a dream for Apple.

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