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.

  1. 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.
  2. 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.
  3. In early November 12th 2012 I be leave Samsung hit Apple with a 20% price increase on mobile processors.
  4. Apple is moving some of their production to the United States.
  5. Apple and Samsung are in law suits over patent infringement.
  6. 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.

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