Verizon (NYSE:VC) and Apple are facing the reality of over-optimistic predictions regarding the launch of the carrier specific iPhone 4 back in February. Despite initially selling in record numbers, demand quickly subsided along with general levels of interest which has subsequently resulted in a rather disappointing overall result.
As such, industry insiders have suggested that Apple are to cut production of the Verizon iPhone 4 by as much as 50% for the rest of 2011. Furthermore, Pegatron, the company charged with the responsibility of assembling the iPhone, has reported total first quarter losses of around $19 million.
Original expectations were for the Verizon iPhone to reach sales of up to 10 million units during 2011, though has now been amended to a slightly more realistic 5 million, according to figures based on Apple component orders. While up to 3 million are already thought to have been shipped in total, sales are likely to continue diminishing rather disappointingly for much of the remainder of the year.
Although a number of factors such as alternative Smartphone options have contributed toward the decline in interest, Apple’s own reluctance to offer any concrete indications as to their intentions for the iPhone 5 may have also had a detrimental effect, as many continue holding off on making a purchase until all the facts are made clear. The general consensus seems to be that signing up for an iPhone 4 at this stage may prove something of a redundant venture should the arrival of the fifth generation model be as imminent as some would have us believe.
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