iPhone 5 Demand Declining, Says Analyst

iPhone 5 Screen

Keep that doom and gloom news coming for Apple, they seem to enjoy eating it up and spitting it out like yesterday’s garbage. An analyst claims that Apple is on the verge of seeing massive declines with the iPhone 5 and iPad.

According to CNET, Citi analyst Glen Yeung believes that a cutback in iPhone supplies and parts indicates that the iPhone 5 is losing demand in the consumer brackets, noting…

“In conducting our regular field work with the hardware supply chain, we again find evidence of reduced demand to Apple’s suppliers for iPhone 5 related components,”… “While production does not directly translate to sales (for example, we estimate Apple finished 1Q13 (Dec) with [around] 10M iPhone units in inventory), we suspect this is an indication of softer demand for iPhone 5 and iPhone 4S.”

According to Yeung, the cutback could be due to Apple clearing inventory for the upcoming release of the iPhone 5S but he’s somewhat doubtful of Apple’s “elusive” next-gen smartphone. He also believes that the iPad Mini is cannibalizing the iPad’s sales…

“Despite much speculation amongst investors and third-party research, we find limited evidence of a low-end iPhone at this stage,” … “As noted above, we continue to expect iPhone 5S to be launched (albeit in early C3Q13 vs. late C2Q13) and anticipate a large-screen iPhone in late 2013/early 2014. But clear indications of a low-end iPhone remain elusive.”