Why iPhone 5 sales are falling but prices aren’t

Soon-to-be-launched iPhone 6 may feature a five-inch display

Facing headwinds from rivals Samsung, BlackBerry, and Nokia (in that order), Apple Inc. is reportedly expediting its plans for unveiling the iPhone 6, complete with a larger 5-inch display.

Apple, which launched the iPhone 5 in September 2012, is perhaps being inspired by the runaway success of the large display on the Samsung Galaxy S3.

Not helping matters are rumours that the iPhone 5 has seen a sales slowdown in recent weeks, with Jeffries analyst Peter Misek claiming in a note yesterday that iPhone 5 sales are “decelerating faster than expected.”

According to Misek, Apple has slashed its build orders by a quarter, from 40 million units to 30 million although he does maintain that “suppliers seem to be prepping for iPhone 5S builds to start in March,” which might be part of reason behind the slowdown in iPhone 5 builds – i.e., the next iPhone coming in a few months.

Additionally, sources are claiming that LG too is prepping up to join the big phablet league and is working on the Optimus G Pro, which will feature a massive 5.5-inch screen.

Apple CEO Tim Cook said earlier this week that the Cupertino-based firm was “making moves to make things more affordable.” A day later, it slashed the prices of its MacBook Pro laptops with Retina display by $300 (256GB model) and that of its 13-inch MacBook Air by $100.

However, Cook neither dismissed nor embraced the idea of a price-cut on its spearhead iPhone 5 device when asked pointedly if Apple was mulling such a move.

 

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