Poor sales of iPhone5 accelerates Apple stocks decline

15 Jan

Apple stocks, the most valuable IT company in the world, fell after an information emerged that the iPhone 5 sales are below expectations and in these circumstances the commands for components were significantly reduced (Bloomberg).

Shares fell by almost 5% up to 497 dollars in U.S. trading debut. Last weekend, Apple shares closed the trading session at $ 520.3, down about 26% from the record level reached in September, more than $ 700 per share.

Apple has reduced orders for iPhone 5 components  due to lower demand, and for the screens for the first three months of the year fell to about half the previously anticipated as the company told the Wall Street Journal.

Apple has cut orders for other components, said one source. Apple has notified in December suppliers regarding changes. IPhone 5 sales so far indicates weaker than anticipated and decline in demand. The decision comes amid stronger competition from rivals Samsung and other manufacturers of smartphones with the Android operating system.

Even if Apple set the tone the smartphone market since the launch of the first iPhone in 2007, Samsung, with more choice, managed to exceed U.S. group based on market share. Also, the demand for cheap models produced by Chinese companies such as Huawei is rising. In the third quarter of last year Apple smartphones accounted for 14.6% of the total global supply, declining from 23% in the fourth quarter of 2011 and the first three months of 2012, according to IDC. In comparison, Samsung‘s market share stood at 31.2% in the third quarter of last year.

iPhone 5 launched in September, is an effort to keep Apple’s smartphone market position in the context of increased competition.

Sharp, Japan Display and LG Display are suppliers screens for iPhone 5, according to people familiar with the matter. To launch smartphone was feared that component suppliers will not produce fast enough to keep up with demand.

Japanese newspaper Nikkei also wrote Monday that Apple has reduced orders for iPhone 5 components.


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