iPhone 5 Order Cut Story Was Overblown, Analysts Say

New reports emerge calling the Wall Street Journal’s report a false alarm

  iPhone 5
It’s not a mystery that some stories are simply released just to cause a stir in the stock market, and some believe that’s exactly the case with the recent WSJ article on Apple cutting iPhone 5 part orders in half.

It’s not a mystery that some stories are simply released just to cause a stir in the stock market, and some believe that’s exactly the case with the recent WSJ article on Apple cutting iPhone 5 part orders in half.

The New York Times says it’s bogus. At best, Apple cut its orders from 19 million to around 12-14 million, which is a modest decline, and a justified one considering that the January – March timeframe is not exactly a peak buying season.

Furthermore, analysts believe Apple’s orders are actually starting to align with its roadmap.

“In our view, the potential order cuts are a direct result of manufacturing yields improving following the fast-and-furious product roll-outs of the iPhone 5 as well as new iPads and Macs,” said Mark Moskowitz of J.P. Morgan, quoted by AppleInsider.

And if we’re to assume the rumors about a low-cost iPhone launching soon, or perhaps even the iPhone 5S in summer, Apple has every reason to reduce some of the iPhone 5 component orders.

Finally, let’s not forget that the handset officially debuted back in September 2012. It’s not as sizzling hot as it was back then, when people still didn’t know what the device looked like, what its features were, etc.

Where do you put that the WSJ’s story actually sent Apple’s stock price down about four percent?

It certainly supports the theory that such reports hit the wires simply to affect the stock price and make some people rich in the process.

Whether or not that’s true, the situation certainly is a bit murky.

Commenting on the same rumor regarding iPhone 5 order cuts, Maynard Um, senior analyst with Wells Fargo, said any such cuts are “not news,” if they even occurred.

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