The Wall Street Journal is reporting that Apple is cutting some of its iPhone 5 part orders by as much as 50%. One if the main parts listed in their reduction claim is the screen. The same report also speculates that the reason for the reduction is weak iPhone 5 demand. Is that the only possible reason?
Other news sites are speculating that Apple may be getting ready to update the iPhone in a few months. This would change the iPhone product cycle from yearly to every six months. While both could be true or partially true, the iPhone update looks more plausible for the following reasons:
A six month product cycle for both the iPhone and iPads makes a lot of sense. The current annual cycle leads to very high demand during the release of a new product, and very weak demand at the end of the cycle. Switching to a six month cycle would even out the demand for the iPhone and put less pressure on the supply chain during initial production ramp and the distribution rush.
Tim Cook is the supply chain expert at Apple. With Tim now in charge, it only makes sense that Apple will be preparing products and their release dates to solve supply chain issues, versus keeping to their annual launch drumbeat. All of this smoke points to a some form of fire, likely being a new version of iPhone arriving some time this spring.
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