Apple and HTC to Scale Down Phone Orders in View of Economic Issues

August 19, 2011, By Sanjeev Ramachandran

The global economy seems to be stressing out handset vendors, as many are pulling back their orders because of economic worries. The fourth quarter of 2011 will be seeing a reduced order of chipsets when compared to the past months.

Most of the smartphone companies were able to reach their production targets for the third quarter, but are not stepping on the accelerator for fear of a possible economic impact in the fourth quarter. Apple, the leader in smartphone market, was expected to have fired up iPhone shipment plans for the later half of 2011, but now they are scaling down on their chipset orders.

But, in the Cupertino company’s case, it’s not clear whether the Apple will be placing orders for the new generation iPhone 5 or the existing iPhone 4. If the order pullback is for the iPhone 4, it is probably due to the launch of iPhone 5, and would have nothing to do with the economy.

Another company found to be juggling its shipment plans is HTC. The company  is said to have initially targeted 70 million units for the start of 2011, but now seems to be going down to around 50-60 million units, which is a wide margin to hold even when economic issues are considered as a factor.

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