Why did Apple cut iPhone 5 tools orders? 3 theories.
1) iPhone sales are soft. 2) Yields improved. 3) Apple is clearing a approach for a new model
FORTUNE — At slightest 4 analysts lowered their Apple (AAPL) cost targets in a past few days formed on reports that a association has reduced a iPhone 5 orders for early 2013: UBS’ Steve Milunovich (to $700 from $775), Citi’s Glen Yeung ($575 from $675), Canaccord’s T. Michael Walkley ($750 from $800) and Pacific Crest’s Andy Hargreaves ($565 from $645).
All 4 seem to be handling on a arrogance that Apple cut a orders since a association is offered fewer iPhone 5s than approaching — a speculation undercut rather by a usually dual things Apple has pronounced about iPhone 5 sales: That they pennyless annals in September, when a device was initial released, and last weekend, when it launched in China.
So are there other reasons Apple might have cut behind on iPhone 5 tools orders? We’ve listened dual competing theories:
- Apple is creation a iPhone 5 some-more efficiently. As Business Insider‘s Jay Yarow put it: “Apple might have put in a bigger production sequence underneath a arrogance that a iPhone 5 was going to be tough to make. Turns out it’s not that tough to make, so Apple can cut a order.”
- Apple is clearing a decks for a new iPhone in a Jun quarter. This is a speculation adored by former Apple CEO John Sculley. “I consider they’re going by a unequivocally poignant change now in terms of product cycles,” he told CNBC. “Traditionally Apple introduces products once a year; now it’s unequivocally introducing products twice a year. The complexity of that from a supply sequence is immense, and Apple seems to be doing it well. So, we consider that people are underestimating only how good Apple is run, and only how successful a association can be when it gets to that twice-a-year product introduction cycle.”
In support of Sculley’s theory, Asymco‘s Horace Dediu has collected half a dozen pieces of what he describes as inconclusive evidence. They seem flattering convincing to me. See Does S mount for Spring?