Phones Review

iPhone 5 supply news to shake things up

Under: Apple iPhone, Mobile Phones
Date: May 27th, 2012

The Apple iPhone 5 looks set to be the major launch of the year with many analysts predicting more phenomenal success for Apple with the next iPhone. Traditionally sales of the latest iPhone are always massive but the iPhone 5 in particular is predicted to be so huge that it could shake up the global supply economy.

The iPhone 4S was seen by many people as a minor upgrade rather than a major revamp (although some would dispute that). As many people held off purchasing it because there was no design change, there’s already a huge potential customer base for the iPhone 5. Add to this those purchasing an iPhone for the first time, those upgrading from earlier models, the likely addition of LTE connectivity and the headway that Apple is making in the China market and we can take it as read that the iPhone 5 will sell in unprecedented numbers.

The upcoming iPhone 5 has even been blamed for recent news that for the first time since 2009, global mobile phone sales have dropped. Analysts feel that this is mainly because smartphone customers are holding off making new purchases in expectation of the next iPhone. We recently told of a report from Piper Jaffray analysts Gene Munster and Douglas J. Clinton that gave some clues about the iPhone 5 and also told how it was expected that the iPhone 5 would be the biggest product launch of the year. They also referred to the iPhone 5 as the biggest upgrade cycle “in smartphone history,” so all of these factors together gives a good indication of just how successful the next iPhone will be.

The impact of sales of the iPhone 5 and the finances involved then will massively affect the global supply economy. This will be particularly evident among suppliers of parts for the iPhone 5 bearing in mind that we expect to see quite a few changes in companies used. Slash Gear reports on some of the supply change leaks referring to several recent reports from China. Firstly it’s said that Apple has placed an order with Elpida, which produces flash memory products, for more than half of their parts in-house. Elpida is a competitor with Samsung, with whom Apple has a long-running and well-documented dispute.

Next we hear that a group in China called TXC, a quartz crystal device producer, has also been given orders for component parts for the next iPhone. DigiTimes has reported that TXC is also supplying orders with Samsung for its upcoming Galaxy S3, the iPhone 5’s main rival. As well as this many readers will already know of Foxconn’s connections with Apple as its main China-based supplier for the iPhone and iPad and the company has now placed an order with Sharp for displays. Foxconn will purchase up to 50% of Sharp’s large LCD panels and modules from its Osaka, Japan plant. This makes perfect sense as Sharp had already been heavily rumored to be a parts supplier for iPhone 5 panels.

In final supply news, Apple and Foxconn are currently in plans together to establish a brand-new factory in China, dedicated to making parts for Apple products. As you can see, the finances involved from such a major product as the iPhone 5 could really see some shifts in the global supply economy, with some companies set to be big winners while others will lose out. One thing for sure about the iPhone 5 is that it’s set to fly off the shelves when it finally releases, most likely in the fall.

We’d like to hear what readers think about the upcoming iPhone 5. Have you already decided to purchase it, even before any specs or features are confirmed? Do you agree with the analysts who say this will be the biggest upgrade cycle “in smartphone history?” Maybe you feel such high expectations could lead to disappointment for some when the iPhone 5 is launched? Let us know by sending your comments.

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  • Georgebanks

    I have never had an iPhone before (I do have ipad2), my Nokia has had a craked serene for 5 weeks now and I am waiting for iphone5.

    • http://pulse.yahoo.com/_64FHEHLLOJVOX3OJR5IKGMC5SQ Ian

      Nokia? cracked screen? HAH

      • Lostandfound899

        Owned 3g, 3gs, 4, 4s and waiting on the new iphone.. Hope comes out even better then the rumors.
        Judging the iphone overall its the best phone to have to date, sure some phones can be better in some features but nothing comes close to the smoothness, display, user friendly, quality of finish and many more qualities tht the current iphone has and expect the up coming iphone to be nothing less.

        • Vbrisotti

          You from Tampa?

    • Anthony

      How the hell do you crack a nokia screen? If you manage to brake a Nokia screen, I only recommend an iPhone 5 if that gorilla glass screen rumor is found to be true.

  • Fabianlopez1522

    when does it some out

  • Jordanburn07

    its coming out around october, seems to be the most pressed date 

  • Ritabuquoi

    I did not upgrade from iPhone 4 to 4S. I will definitely upgrade to the next gen iPhone.

  • Jacintafelton

    Myself and partner have an iPhone 4 and waiting to upgrade to iPhone 5.

  • rnd

    I am switching to the android.  A 3.9″ screen on the Iphone 5 is not enough with all the things you can do with a phone!

    • nfs

      I AGREE!  My droid beats that screen.  Besides, I am not to kosher on supporting China with their queer innovations lately.  I’d rather put my money where my economy deserves the most in–right here!

      • Pac1974

        Where is your droid made? Queer

      • You’re*

        Oh that’s so cute, you think android phones aren’t made in China.

        Adorable.

  • http://www.facebook.com/people/Rudi-Xeno/726467137 Rudi Xeno

    While I have no doubt that the iPhone 5 will be a huge seller, perhaps on a scale never been seen before, I have a hard time imagining that it will bring any meaningful advances to smartphones.  That’s just not what Apple”s about.  If rumors are true, Apple is finally going to begrudgingly move up to a 4″ screen.  No, technological advances are the provence of first tier Android manufacturers like Samsung, HTC and now even Motorola.  And I wouldn’t write off RIM here.  They finally understand that the entire future of their company is riding on their next smartphone and BB10.  Being familiar with the QNX OS I can ‘say it’s arguably the strongest mobile OS available.  If RIM can just be careful not to do something RIMish their new BB10 phone could be huge.  Granted, that’s a big if.

  • Gctsurg1

    New Factory in China? How about they take some of that American, money they are getting and build a factory in American?

    • Dlanceiv

       Probably because people in America are are too stupid to put together a sentence correctly, let alone build an intricate electrical device…i mean “build a factory in American?”…seriously…you sound stupid.

      • Jonqpublic

        Because it’s cheaper, that’s all

      • ambassador

        I bet you have security issues

      • Craig Boliek

        That was well put! Lol…

  • Plumcrazychally

    I’m definitely planning on buying the iPhone 5 whether it’s a slight upgrade or a major upgrade to the iPhone 4S because I have a Motorola Droid X with countless issues and I plan on buying an iPhone. I just don’t want to purchase an iPhone 4S right before the 5 is released. Hopefully my Droid will last until the launch of the iPhone!

  • melissa

    i still have the 3gs, i got it like 4 months before the 4 came out cause i didnt feel like waiting, and had to wait 2 yrs and damn i feel like i been waiting forever, i would go out and get the 4gs but then the 5 will come out and next thing you know ill be waiting for the iphone 7 or some crap…. dah… iphone problems

  • Jess

    coming out june/july. not october

  • alyssa

    already looking to buy it, long overdue for an upgrade, but definitely sticking it out until the release

  • Virgo

    I’d been waiting for it since last year, the fact that it was just 4s made me hold back from getting it… But I’m definetly going for it thi year, specialy because i heard it was the last designed by Steve Jobs :) and will also be my first smart/Iphone… #can’twait

  • DG

    I got iphone 3gs in 2010 and have been using it since then. didn’t upgrade to iphone 4s as the screen size is too small. want to have a big screen atleast 4.2 for browsing. waitng for iphone 5.
    will go for android phone(mostly Samsung Note) if iphone5 screen is smaller than 4.2 inch.

    • ODoyleRulz

      It is not going to be 4.2+ and I’m glad. Why have you been waiting for so long? You should go buy something else.

      • Dave

        Agreed, I dont think it will go even to 4”

    • david

      iphone for makeing calls and txt, Yes. But for internet buying and downloading and useing it just like a computer in your pocket Then Galaxy note. Fullstop!

  • Its_sid2005

    iPhone 5 is the most awaited smartphone in the history of time. If you use apple you will never think of using anything else again.

    • Mission55x

      I lol’d

    • mheez

       you will never THINK
      You got that right
      I hate Apple with a passion yet am awaiting the iphone 5 as it’s easier to relate to all the sheep I need to whom have apple with an apple than the much better Android.

      • Blairington

        I looked at this and I pictured a kid smashing his head on the keyboard screaming…

        “I HATE APPLE, I HATE APPLE… I LIKE PEARS BUT I HATE APPLES…. SHUT UP MOM I HATE APPLES……… mom, can I have an iPhone 5 on release day please?

  • john

    Ignorance its such a sad thing

    • ODoyleRulz

      You are a testament.

  • marine725

    If it doesn’t come in June I’m buying the new galaxy for my wife and I. I would love to have the new iPhone just sick of waiting

    • Canucksfan_capitals

      i agree with u!! hoping for a june release :) and i bigger screen, like the samsung galaxy note, i heard that apple is bringing out IOS6 and Itunes 11! :) with a better itunes store revamped design

  • SWAGBUCKS

    IT’S NICE TO KNOW THAT I’M NOT THE ONLY ONE WITH THE ORIGINAL IPHONE. THE MAIN PURPOSE OF A PHONE IS TO COMMUNICATE WITH THE OPPOSITE SEX, ONCE YOU FIGURED OUT THE INDIVIDUAL’S NAME AND NUMBER OF COURSE. I’M GLAD I HAVEN’T UPGRADED YET AND HAVEN’T HAD ANY PROBLEMS TEXTING! KEEP YOUR COOL PIMPING d .(^_^ ). b

    • wildcat1935

      Its unpolite to shout.

  • mheez

     iphone 5 better have a screen larger than 3.999/4″   
    4.5, 4.8, 5.3, 5.6 is all much better and more usable.    The Galaxy Note is extremely portable, easy to handle and much more practical to use as you can actually see what you are doing.

  • wargamer1969

    Was really disappointed in the 4S since it took them 18 months to come out with it past the 4 which I had. They took way too long so I got a Galaxy Note and couldnt be happier. It was fun while it lasted Apple but I wanted a bigger screen and customization. 

  • http://twitter.com/sidonieyang Sidonie Yang

    My husband is also waiting for the iPhone 5, actually… he is currently using a 1.5-year-old HTC Desire (which he is quite disappointed with, after having switched over from the iPhone 3GS).

    The iPhone 5 may indeed be the biggest upgrade cycle for smartphones in history… but that’s only “thus far”. And hey, the history of the smartphone is not very long, is it?!

    • Alien

      may I know in what aspect your husband is dissapointed with htc desire over iphone?  I am currently an Iphone 4 user but android phone does attracted me.  I’m thinking of switching to android for larger screen, unless iphone 5 proved to have a larger screen.

  • Natecfs

    Yes…. Myslf and at least 10 of my friends have already decided that we are purchasing the iPhone 5… First, apple has finally proven to me that their hardware and design is superior to any other smartphone manufacturers out. And also because it’s the final project king jobs passionately worked on before his passing. Apple for life! Ex- android lover!

    • shortgame11

      u dickhead, how can apple have proven that their hardware is better than others when they are bying it off the other companies. e.g. the cpu chips are manufactured by samsung and samsung have those chips in their phones aswell. stupid dumb dickhead. i hate retards commenting on things when they think they know somthing and there wrong…

      • You’re*

        I really don’t think someone opening their comment with “u dickhead” is in any position to be calling someone else a dickhead…

      • shortgame.is.his.penis

        well actually shortgame, u here are the pecker head.  anything manufactured for apple via 3rd party contracts, is exclusively patented for a period of 2 years, so when other companies are elligible to utilise their knowledge from assisting in the creation of something, apple has allready moved onto 2 improved products.  you really are a knob aren’t you.

  • Habikus

    What a awesome strategy. Not only Apple is and will be making a lot of money on sales and pre sales, but the combinations of contracts and exclusivity to few network operators will make it a killing.

    Now the best bit. All those who wait …(what a cash cows) extending their contracts “willingly” therefore PURE profit…killing other smart phone manufacturers..

    well done…Apple.

    Yet..will this be it? What after iphone5…

  • Pongobmx

    I think my mind is made up. As long as it supports the 4G LTE network with verizon. If it doesn’t, Ill have to look for a different phone. After using the 4GS, I think apple knows what they are doing when it comes to interface development and refinement.

  • Biteme

    Nerds!

    • Brandontrules

      How is somebody being interested in a phone a nerd? and mroe improtantly, you’ve obviously searched this yourself to get to this page. Go do something productive. paint your mom a picture so she can put it on the fridge.

  • Kathie63

    I have had the 3gs, 4, 4s but if Apple does not make any significant changes like at least the 4.3 screen I won’t get one.  I won’t waste my money on just little changes like with the 4s.

  • http://fontsbytes.com/ FONTSBYTES.COM

    pretty nice..can’t wait!

  • jash_aerial12

    come on apple! bring it on….!

  • Trejo495

    I have the Thunderbolt but would like to get the iphone 5 when it comes out. It will be my firts iphone.
    I just hope it’s 4 inches, LTE 4G, make the battery last longer and at least 8 or 10MP camera.

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