Apple cuts back Q4 iPhone 4S orders – Report

Wed, Nov 9, 2011


Apple has reportedly scaled back on its orders of iPhone 4S component parts for Q4 by 10-15% The reason, according to Digitimes, is that iPhone 4S sales haven’t been as strong as expected and haven’t matched projections following a strong pre-sales weekend. Also at play, the report notes, is that there shortages of some key iPhone components resulting in an overall slowdown in production.

Related iPhone 4S suppliers including cases and camera lens makers as well as ODM assemblers have received notice from Apple to reduce their shipments for the fourth quarter, but none of them has confirmed the report, the paper said.

Some international IC players have also indicated that their revenues are likely to slide by 10-15% in the fourth quarter due to the shipment adjustments for iPhone 4S.

With Apple selling 4 million iPhone 4S devices in the first weekend it went on sale, not to mention iPhone 4S shortages in the weeks that followed along with persistent and strong international demand, it’s hard to believe that iPhone 4S sales are slacking in the slightest.

Notably, MacRumors points us to a note from RBC Capital Markets analyst Mike Abramsky who writes that claims of a sales slowdown doesn’t jibe with what carriers are saying. Explaining the alleged cutback in orders, Ambrasky suggests that Apple “may simply be pulling back slightly from an initial over-ordering of components, something the company has reportedly engaged in at times in order to gain the most favorable pricing possible.”


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