Apple has reportedly slashed component orders for the iPhone 5 amid speculation of disappointing sales, while Samsung is reporting record sales figures.
According to reports Californian tech giant Apple has cut the number of screens it wanted by 50 per cent and cut orders on other parts too.
The firm is believed to have told its suppliers about the change to its order last month in a move which is set to apply until the end of March.
Japanese daily Nikkei is reporting that the American hi-end gadget maker has asked suppliers Sharp, LG and Japan Display to cut down the supply of LCD panels after initially ordering around 65 million units for this quarter.
Although, the reduction in component numbers may not all be about demand. According to the Wall Street Journal, Apple could have over ordered in the first place because of worries over quality.
But ordering more than it actually needed, Apple could have been making sure it had replacements in order to keep customers satisfied.
The speculation about iPhone sales comes as Apple’s biggest rival Samsung has announced it has sold more than 40 million Galaxy S III handsets worldwide.
According to the South Korean company, it is currently selling a whopping 190,000 Galaxy S III handsets every single day. In total, it has reached the milestone of 100 million when it comes to the number of Galaxy S smartphones from all model ranges it has sold.
That impressive statistic includes around 40 million Galaxy S II handsets and 20 million Galaxy S smartphones.
In a statement, a clearly delighted Samsung said: “The driving force behind Samsung Electronics’ rise to the top on the global smartphone market is Galaxy S II which is gaining ground as a steady seller hitting the sales of over 40 million in only 20 months.”
The new sales figures come on the back of an earlier announcement by Samsung that it expects to record profits of £5.2bn for the final quarter of 2012, a mammoth increase of nearly 90 per cent on 2011.
Samsung is also widely believed to be gearing up to launch the next generation in its flagship Galaxy range. The Galaxy S IV is due anytime now, possibly as early as next month. It is widely expected to feature a higher resolution screen and a more powerful processor.
But while Samsung is going from strength to strength, Apple’s share price fell on the back of news it had cut its components order. For the first time in almost a year, they dropped below $500, after falling by 13 per cent.
It looks like Apple is facing increasing pressure to retain its position in the market with Samsung increasing its share of the smartphone market to nearly a third in the third quarter of 2012, more than double Apple’s 14.6 per cent share.
But, while Apple’s marketing chief Phil Schiller has denied claims the firm is planning a cheaper iPhone, many analysts still believe the company could bring out another model in its iPhone range, perhaps a Mini iPhone in a bid to keep up with competitors.