Apple shares fell after The Wall Street Journal reported that the company has cut its orders for iPhone 5 components due to weaker than expected demand and the product not selling well. Apple which has fallen to 5.5% market share behind Nokia 19.2% and Samsung at 22.9% which both sell the droid operating system on their own hardware.
People have been quoted as saying the first iPhone was a head of its time and for first 2 to 3 years there were innovative now they are playing catch up. There is other possible reasons why Apple has cut their component orders from Samsung.
- On October 12, 2012 Reports said Apple is planning to shift production of its ARM-based microprocessors from Samsung to the Taiwanese chip-baking giant TSMC as early as next year.
- Back in October 22, 2012 there was a report that Samsung was cutting LCD supply chain to Apple. Later Samsung claimed the rumor to be false.
- In early November 12th 2012 I be leave Samsung hit Apple with a 20% price increase on mobile processors.
- Apple is moving some of their production to the United States.
- Apple and Samsung are in law suits over patent infringement.
- The holiday season has come to an end and United States still has tough economy
I am not saying Apple sales are not slowing down. What I am saying is I think it’s possible that maybe the orders for iPhone 5 components are slowing down because Apple is planning a hardware vender change or a product direction change time will tell.