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Apple Cuts Back 10% on iPhone 4 Orders To Prepare For iPhone 5’s Release

According to a report by Taiwan based industry insider Digitimes, Apple has cut their orders of iPhone 4 to Taiwan PCB manufactures by about 10%. This is assumed to be in preparation for the expected announcement of Apple's next major iPhone release, the iPhone 5.

Apple iPhone 5
According to sources from inside the industry, despite the third quarter being a traditional peak season for the consumer electronics industry, Apple has made orders that was rather disappointing:

The Taiwan-based PCB companies, which are shipping products for iPads and iPhones, have seen disappointing orders for these devices in the second quarter, the sources said. Orders thus far for June show no signs of a rebound, the sources indicated.

It is doubtful that this cutback in orders is somehow related to the declining sales of the iPhone 4 since despite being released last year, the latest version of the iPhone is still selling quite well. The only logical conclusion to this order reduction is that Apple is currently preparing the iPhone 5 in time for the announcement this fall or for its rumored launch this September. The iPhone 5 (or 4S) is said to be taking the same form-factor as the iPhone 4 and it will be launched preloaded with Apple's latest mobile operating system, the iOS 5.
iPhone 5 Metallic
If the next iPhone is indeed being prepared for release, orders will most likely get a rebound soon:

However, with the iPhone 4S set to be launched in the third quarter, the responsible Taiwan-based PCB makers may see their shipments rise sequentially through September, the sources expect.

There have been many speculations and rumor that are circulating with regards to the next iPhone. There have been many reports that indicate that the next generation iPhone won't exactly be a big leap in terms of upgrade and it sports a similar form-factor as the iPhone 4. This leads people to believe that the next iPhone will be called the iPhone 4S. But there have been rumors too that the smartphone that will be announced this fall is in fact the iPhone 5.

We expect to hear more news about Apple's next iPhone offering.

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