Apple has reduced its orders for iPhone components according to stories Monday, January 14, in the online Wall Street Journal and other sources. The reasons include the fact that people bought fewer iPhones over the holidays than Apple was prepared to sell. The underlying causes also include the popularity of Android phones such as the Samsung Galaxy Note 2 and Samsung Galaxy S III as well as the numerous Droids available at Verizon. The fact that Apple still sells iPhone 4S for less than half the price of the iPhone 5, and that US carriers give a free iPhone 4 away with a new 2-year phone commitment, also cuts into sales of iPhone 5. These older iPhones are still good and not all that much different from iPhone 5.
The iPhone is still the single most popular mobile phone on the market though all the Androids together sell more phones than Apple sells iPhones.
Rumors indicate Apple is already working on the next iPhone. That is natural; they need to work far in advance of the release date for every new product.
As a side effect of Apple's reduced supply orders, or perhaps a side effect of the news reports on the reduced orders, stock prices decreased for some of Apple's suppliers.
Copyright © 2013 Susan J. Walker. Subscribe above to receive an email whenever Susan Walker publishes on Examiner.com. Follow @WalkerSusanJ on Twitter.