According to the Wall Street Journal, Apple has cut orders for iPhone 5 components by half. Apple notified its suppliers last month of this cut, an anonymous source familiar to the situation said. Speculation is that the iPhone 5 is not selling as well as expected. Apple is still selling the iPhone 4s, the previous generation iPhone. The 4S is believed to be currently outselling the iPhone 5.
The iPhone 5 has higher specs than the 4S, and has a .5 inches longer screen than the 4S. The 4s has a 3.5 inches screen, and the 5 has a 4 inches screen size. The iPhone 4s is sold at $99 on contract at only 16GB. The 16GB iPhone 5 is $199, then for 32GB, it adds another hundred dollars. The 64GB model adds two hundred dollars compared to the base 16GB model.
Also as prepaid is being promoted more and more, Virgin Mobile sells the iPhone 4S on prepaid, along with even the iPhone 4 still. Walmart and Straight Talk Wireless recently as of Jan 11 started offering the iPhone 5 for prepaid.
So if you want an iPhone today, you have many more options than just getting an iPhone 5, and for lots of people the 4S is still a great little powerful phone, despite being a year old. Also another thing you have to consider is contracts, some people will only upgrade their iPhone every two years on contracts. Samsung also rose 31.3% in the third quarter of 2012. Maybe people are liking the smaller form factor of the iPhone 4S compared to the iPhone 5. Hard to tell, with the changes to the iPhone 5 compared to the 4S, and lots more options in the phone market for iPhone, and other competing phones.
Why do you think iPhone 5 is selling worse than expected?