Rumor: Apple lowering CDMA iPhone 4 orders, even though survey says Apple is #3 US smartphone vendor

It appears that after robust sales in the first few months of the iPhone 4's life on the Verizon network, demand might be slowing down for the CDMA device. That's despite new NPD data showing a major impact from the Verizon iPhone, including a hit to Sprint's results.

In a report discussing first quarter 2011 losses at iPhone supplier Pegatron, Digitimes noted that "market watchers are turning conservative about CDMA iPhone 4 shipments in the future as volumes may not be as strong as expected." Pegatron was expected to ship about 10 million iPhone 4s in 2011, but recent estimates are in the range of 5 million units.

There are several hypotheses about the slowdown in production of the CDMA-only device. First, demand for the Verizon iPhone may have cooled off when widely publicized reports noted that the carrier's 3G network was noticeably slower than rival AT&T's, or when would-be switchers were hit with a barrage of "no simultaneous voice and data" warnings.

Next, it could be that Apple has a true GSM/CDMA "world phone" in the works for later in 2011 and is just clearing the channel for the new model. Finally, many Verizon customers may realize that the iPhone 4 will soon be replaced by a newer model and are just waiting for the next-generation device before switching.

Meanwhile, 9to5 points to the latest NPD report showing Apple holding an astonishing 14 percent of the US smartphone market, behind only LG and Samsung. The Verizon iPhone launch certainly helped push that number, along with AT&T and Apple's aggressive discounting of the iPhone 3GS after the iPhone 4 hit the market. Since NPD is looking at historical sales data while Digitimes is looking ahead to supplier and component forecasts, it is possible that both stories are right: the Verizon iPhone had a killer launch, but it may not have legs through the summer if the iPhone 5 is coming along.

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Source: http://www.digitimes.com/news/a20110427PD217.html

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It appears that after robust sales in the first few months of the iPhone 4's life on the Verizon network, demand might be slowing down...

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ShaleX

Also doesn't help that Apple employees talk customers out of Verizon iPhones. Or the fact that Apple hasn't been supporting the Verizon iPhone with the latest OS versions.

I'm a VZW iPhone customer, and all I'm getting from Apple is that The Verizon iPhone was to shut people up, and it's not a product that they will actively support.

April 28 2011 at 5:34 PM Report abuse Permalink rate up rate down Reply

exnewt

From a business user's standpoint, the fact the Big V iPhone can work in Europe is a major biggie.We use both ATT and Verizon; the fact it won't work is a deal breaker

April 28 2011 at 5:21 PM Report abuse Permalink rate up rate down Reply

Joshua

Or, all of the above? Apple is going to release a new phone later this year, and they JUST put out the white model, I'm sure there is some reasoning behind that move....but why not both? Reduce your manufacturing investment in an older model and prepare for the new one. It wasn't a matter of if it was a matter of when. And why not now, since the , Verizon thing has calmed down.

April 28 2011 at 12:37 PM Report abuse Permalink rate up rate down Reply

Shawn

Not too surprised by this. As one who preordered on 2/3, (and glad I did), EVERYONE "knows" it is an "old" phone. There is going to be some synergy in parts on the iPhone 5. And that is likely coming in 2011. Tim Cook all but admitted it. "Verizon users told us the want the iPhone now." We don't know what Apple or Verizon expected, but the press expected a mass exodus from AT&T.

The real true test will be when AT&T and Verizon release a new iPhone on the same day. Might even not be until an LTE iPhone (assuming 6/2012)

April 28 2011 at 12:06 PM Report abuse Permalink rate up rate down Reply

Doug Macherey

I tend to go with the supposition of holdouts waiting for the iPhone 5 to come out, with more up-to-date features. I'm one if those. Much as I'd like to switch from my current dumbphone, I don't want to get locked into a 2-year contract for something that is already behind the times.

April 28 2011 at 11:58 AM Report abuse Permalink rate up rate down Reply