Apple Not Confirming Reported Cut in CDMA iPhone 4 Orders
Rumors and the reports they've spawned over the last twenty-four hours suggest that sluggish sales of the CDMA-based iPhone have promoted Apple to dramatically reduce the production order for the model through the end of the year. If reports from the far east are, indeed, accurate, Apple may have slashed the rate of production for the CDMA iPhone by as much as 50%.
My calls to Apple regarding this issue were not immediately returned, though - as expected - its unlikely Apple will formally comment on this matter for the time being. By the same token, a diminished sales demand for the iPhone model in question is to be expected. Given the epic fanfare with which the iPhone 4 came to Verizon, it would be impossible - even for Apple - to maintain Verizon iPhone fever for the duration of the year.
It should also be noted how this information became public. Rather than an internal leak at Apple, Pegatron Technology's reported earning this week (which actually revealed net losses $19.38 million) for the first quarter of 2011, told the whole story.
Pegatron, according to DigiTimes, initially anticipated shipping some 10 million CDMA iPhone 4s in 2011, but component makers reveal to the publication that Apple's orders have plummeted, and the cut in production volume is estimated to fall as low as just five million units.