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iPhone’s 5 original shipment was too high to sustain, analysts claim

by Nicole
January 17, 2013 at 5:09 pm

According to DisplaySearch, rumors about the reduction in screens orders for the iPhone 5 do not indicate a decline in demand for the device.

Credit: Apple

Apple is simply adjusting supplies too quickly after the start of industrial production.

Interviewd by CNET, Paul Semenza, senior vice president, analyst services, at DisplaySearch, is not pesimistic about the iPhone 5 demand.

“We started hearing indications of cutbacks before the new year,” told CNET.

“It was a very quick ramp up. The Q4 [estimate] was originally about 61 million displays [for the iPhone 5]…that may be dialed back, but anything near that number is still huge.”

“That would support the theory that the ramp was too much to sustain,” he added.

The initial estimates were 61 million screens for the fourth quarter of 2012, a volume much too high in comparison to the already high sales of the iPhone 4S in the last quarter of.

DisplaySearch has revised the forecast sales of the iPhone 5 in the first quarter of 2013, from the previous 57 million to the current range of 33 million to 42 million.

Some analysts have concluded that the cutting of orders has been generated by improvements and increases in yield components. Howver, Semenza doesn’t agree.

“That’s not logical. If the number of orders are cut, that really has nothing to do with yields,” he said.

Source: CNET

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