Analysts claim iPhone 5 sales still strong

Lower orders put down to streamlining of production process

Earlier this week it was reported that Apple had cut back on ordering more component parts for iPhone 5 handsets, due to 'weaker than expected sales'

Update: Analysts from Sterne Agee have suggested that actually iPhone 5 sales haven't dropped at all stating that the cut in orders is more down to a streamlining in the production process meaning that Apple was able to build more than enough in a much shorter time frame.

Speaking to the Telegraph, Mark Moskovitz of JP Morgan confirms this theory saying, "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".

Could it be that the global appeal of Apple's smartphones is waning? A report in the Wall Street Journal hints that this might be the case. According to the story, Apple has cut back orders for component parts for iPhone 5 handsets due to 'weaker than expected demand' from consumers. The article cites 'people familiar with the situation' as its sources.

The report goes onto to state the same sources state that Apple's iPhone 5 orders for the period from January to March were half as large as were originally planned for. They told the Wall Street Journal that suppliers were notified of the cut backs last month.

The news not only suggests that consumer interest in the iPhone 5 may be dropping off, but also that Apple's rivals in the smartphone market, such as Samsung and Chinese handset manufacturer Huawei are garnering more of the smartphone markeshare. The Wall Street Journal reports that Samsung, for example, has swept up 31.3 per cent of the smartphone marketshare with its Android phones, more than doubling Apple's 14.6 per cent share.

Source: The Wall Street Journal, The Telegraph