Apple to Stop Production of iPhone 5 after 3Q13?

26 Jul

Apple may halt the production for the iPhone 5 in Q3 in order to make way for the iPhone 5S and low cost iPhone, according to a recent report from the Korean publication, ETnews.

The main rationale behind this move appears to be related to production as well as component-related issues. As stated by sources close to ETnews, the iPhone 5S will be employing a type of “in-cell” display technology that will enable any devices to assume thinner and lighter forms. Implementing the technology effectively (as well as on a massive scale) would require that the company get rid of huge batches of older components and equipments, which include those generally intended for iPhone 5.

With the production of the present iPhone expected to come to an end this coming quarter, the ceasing of the iPhone 4 and iPhone 4S, naturally, is likely to ensue. Phasing these older models out would allow Apple to make a permanent departure from the 30-pin format, which in turn would enable the lightning connector to become more mainstream, according to ETnews.

What would be particularly interesting to see, as all the older iPhones are gradually phased out, is how Apple would maintain its existing appeal within the low-to-mid end market; As suggested in the recent survey from Consumers Intelligence Research Partners (CIRP), both the iPhone 4 and 4S remain highly sought after iOS devices even with the iPhone 5 comprising the majority of the iPhone sales; Worth mentioning, also, is the fact that during the most recent earnings conference, both Apple CEO Tim Cook and CFO Phil Oppenheimer cited the older iPhones as the reason for its success in emerging markets, among them China and India.

Speculation currently has it that the low cost, budget iPhone may replace the iPhone 4 and 4S as the go-to choice in the low and mid end sector.

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