Apple cuts CDMA iPhone 4 production in half?

By on Apr 28, 2011 at 9:42 AM
mobile April 28, 2011

DigiTimes is reporting that orders for CDMA iPhone 4 units assembled by Pegatron have been cut in half — with only 5 million devices being manufactured in the initial 2011 order, down from 10 million units. Pegatron just this week reported a net loss of $19 million for the first quarter of 2011, which is a historical low. Over 3 million CDMA iPhone 4 handsets have been manufactured and shipped, and it looks like Apple is comfortable with selling around 1 million CDMA iPhones a quarter — until the much-rumored dual CDMA/GSM iPhone 5 is available in September.

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  • Batteman87

    Sales down and NEW one coming down the pipe!

    • serpentor

      They should’ve already figured that into their projections. Cutting their production means CDMA iPhone sales aren’t meeting expectations.

      • Bullet Tooth Tony

        Maybe they didn’t figure the all new White iPhone into their projections…… ;-)

      • Anonymous

        The white iPhone 4 is a party that almost nobody is going to show up for… just like the Verizon iPhone 4.

      • Bullet Tooth Tony

        Maybe they didn’t figure the all new White iPhone into their projections…… ;-)

      • Michael Scrip

        – “They should’ve already figured that into their projections. Cutting their production means CDMA iPhone sales aren’t meeting expectations.”

        Yeah. Maybe Apple should have waited until the iPhone 4S or 5 came out to launch on Verizon. February is an awkward month in Apple’s lineup.

        But, they did sell 3 million CDMA iPhones in a couple months… and, remember, this is an “old” phone on a new carrier.

        If Apple profits around $300 per iPhone… that’s an extra $900 million that Apple got by simply being on Verizon.

        That’s not as big a failure as everyone says the Verizon iPhone is. Apple will be selling an iPhone on Verizon for the rest of our lives… it certainly isn’t a bad thing to be on the other major carrier in America.

        But I think it will be better when Verizon gets in line with the next release… I don’t think a mid-cycle launch was the best idea. They did move a lot of phones, however.

      • idaph09

        No Mr. Smartass,

        Keep in mind the economy within the U.S is quite slow at this point in time in addition to the many rumors that the new iPhone 5 is coming out relatively soon. CDMA iPhone 4 was not slow…the reason why there wasn’t lines forming outside of Verizon stores on launch date is because Verizon offers great customer service which allows customers to pre-order their iPhone 4 prior to launch date. Many customers received their iPhone 4 prior to the actual official launch date. Even with that…if you follow the numbers, (even with the pre-sale) Verizon iPhone 4 launch date sales still exceed GSM iPhone (first generation) by 25%. So in conclusion… SHUT UP PUNK!!! AT LEAST I CAN GET CALLS ON MY CDMA IPHONE!!!

  • Batteman87

    Sales down and NEW one coming down the pipe!

  • Batteman87

    Sales down and NEW one coming down the pipe!

  • Anonymous

    Maybe the VZW iPhone isnt selling well? Maybe it proves that if ATT had a killer Android lineup and massive advertising like VZW, the GSM iPhone wouldnt sell well either?

    Just speculating here… Analysts do it all the time…

  • Anonymous

    Maybe the VZW iPhone isnt selling well? Maybe it proves that if ATT had a killer Android lineup and massive advertising like VZW, the GSM iPhone wouldnt sell well either?

    Just speculating here… Analysts do it all the time…

    • Guester

      I think this is a pretty interesting way to look at this, and truthfully, probably not too far off either

    • http://www.droiddoes.com/ Norm

      The Verizon iPhone is a failure. People only wants DROIDS now on the two big carriers that count.

      • Anonymous

        Wow common sense just is not your thing huh.

      • http://twitter.com/MrKow84 Kyle

        He’s slow leave the poor sport alone…

      • http://twitter.com/MrKow84 Kyle

        at what point during the day do you change your tampon ? I mean battery on your TBolt =)

      • Anonymous

        At least you can change the battery on a Thunderbolt. It’s also pretty nice to be able to swap memory cards.

      • Anonymous

        I have a Droid 2 Global on Verizon, and I’m eligible for a new phone. My plan is to switch to an iPhone, as much as I love the Droid. I’m waiting, because there’s no way I’m locking myself into a 2 year contract on a new phone that’s almost a year old, and when I know the next gen is right around the corner. I suspect that there are a lot of people in the same situation.

      • http://twitter.com/MrKow84 Kyle

        unless your just money bags like me and can buy w/e phone you want and whenever you want…

      • Anonymous

        Norm, although I admire your consistency to BGR posts…you gotta learn, its Android…not DROID….droid is the name of one phone on verizon made by motorola….please, if your gonna be a fan, as least get the name of the OS correct.

      • john

        Droid isn’t just the name of a phone made by motorola…its a line of phones made by several different manufacturers…moto, samsung, htc…

      • http://twitter.com/DavisDarvish Davis Darvish

        you know that norm is a serial troll and calls it droid on purpose to piss off people and sound retarded…..

      • anDROIDfan

        I call it DROID OS myself.

      • Anonymous

        Really Norm? You are a moron:

        Verizon iPhone Surge Yields First Slip in Android U.S. Sales Share in Two Years

        Market research firm NPD today announced the results of its “Mobile Phone Track” survey for the first quarter of 2011, covering U.S. mobile phone sales. According to the study, Apple rode the strength of the CDMA iPhone launch on Verizon to eat into Android’s share of the smartphone market for the first time since the second quarter of 2009. Android does, however, continue to hold a strong lead in market share.
        The Android OS lost ground for the first time since Q2 2009, falling to 50 percent of smartphone unit sales in Q1 2011 compared to 53 percent in the prior quarter. Apple iOS share rose 9 percentage points to comprise 28 percent of smartphone unit sales. BlackBerry OS also lost ground, falling 5 points, to 14 percent.

        The iPhone surge comes even as Apple has reportedly sliced CDMA iPhone 4 production to half of its initial 2011 projections.

    • Anonymous

      The difference is that analysts wouldn’t ignore data published by the companies involved.

      The Verizon iPhone 4 (the one that’s been on AT&T since last June) moved 2.2 million units last quarter in just 7 weeks according to Verizon (in addition to the AT&T sales, of course). It outsold all Android devices on Verizon combined, including the Thunderbolt which shipped in mid-March and moved a relatively weak 260K devices in 2 weeks.

      The Verizon iPhone is doing very well.

    • Anonymous

      Verizon iPhone Surge Yields First Slip in Android U.S. Sales Share in Two Years

      Market research firm NPD today announced the results of its “Mobile Phone Track” survey for the first quarter of 2011, covering U.S. mobile phone sales. According to the study, Apple rode the strength of the CDMA iPhone launch on Verizon to eat into Android’s share of the smartphone market for the first time since the second quarter of 2009. Android does, however, continue to hold a strong lead in market share.
      The Android OS lost ground for the first time since Q2 2009, falling to 50 percent of smartphone unit sales in Q1 2011 compared to 53 percent in the prior quarter. Apple iOS share rose 9 percentage points to comprise 28 percent of smartphone unit sales. BlackBerry OS also lost ground, falling 5 points, to 14 percent.

      The iPhone surge comes even as Apple has reportedly sliced CDMA iPhone 4 production to half of its initial 2011 projections.

  • Anonymous

    Maybe the VZW iPhone isnt selling well? Maybe it proves that if ATT had a killer Android lineup and massive advertising like VZW, the GSM iPhone wouldnt sell well either?

    Just speculating here… Analysts do it all the time…

  • http://twitter.com/MrKow84 Kyle

    And so it begins… iPhone 5…

  • http://twitter.com/MrKow84 Kyle

    And so it begins… iPhone 5…

  • http://twitter.com/MrKow84 Kyle

    And so it begins… iPhone 5…

  • Anonymous

    Why doesn’t Apple want to build an LTE capable iPhone? (snicker)

    • Bluelou65

      prolly because battery life using LTE sucks so much you have to turn it off just to get a decent use out of a charge.

      • Anonymous

        It’d be nice to have the option to switch it on and off?

      • Anonymous

        Folks I don’t know what you are talking about. We have tested over and over again at the goofan (aka apple hater) labs in Cupertino the battery life of phones with android and the “happy ever lasting” app which generates power and allows android with it’s amazing power to charge the phones battery and it works like a charm. Right now, I’m on my thunderbolt and haven’t had to charge it once since I bought it. All the while running upwards of 100 applications and on lte…

    • Anonymous

      Because LTE, although deployed in around 90 cities right now, means squat…the US has over 10,000 cities…Apple, along with RIM both know that LTE is the future, but the future (in regards to LTE 4G) will not be completed until 2013. Thus, have a 4G phone right now, really makes ZERO sense.

      • Anonymous

        It makes a lot of sense. If LTE is available in 90 cities right now…well, how much of the U.S. population is in those 90 cities?

        Where are all the techies in this country? They sure as hell aren’t out in rural areas.

        Like I said, make an LTE phone with an option to turn it on or off. Or make two iterations of the phone so a user can choose if they want it or not.

        OPTIONS! This is why Android is rising so quickly, IMO.

      • James

        Where I live, Verizon’s LTE covers about 99% of the county, and there are 33 “cities” in this county. Oddly, not a single one is listed in any of Verizon’s published info on 4G coverage, nor are any mentioned in future expansion plans. My 4G reception here is fantastic and I’d bet that there are many areas in the country that are covered and not mentioned.

    • Anonymous

      I’m thinking it’s because unlike HTC, which can ship a device with awful battery life yet get a pass because it’s just one of 250 Android devices, anything Apple does invites heightened scrutiny. “Antennagate” is a perfect example.

      • Anonymous

        This is actually the first reasonable answer I’ve seen on this.

        But Apple has brought it on itself, by the snide remarks that Jobs makes and the level of unearned arrogance that iPhone users walk around with.

      • Anonymous

        This is actually the first reasonable answer I’ve seen on this.

        But Apple has brought it on itself, by the snide remarks that Jobs makes and the level of unearned arrogance that iPhone users walk around with.

      • Bluelou65

        unearned arrogance that iPhone users walk around with? WTF are you talking about?

      • http://twitter.com/tinotino tinotino

        I agree w/ you, the thunderbolt is 2009 hardware with a tiny battery. Yet it out sells the cdma iphone. Amazing! There is nothing Verizon can do to sell more iphone. The iphone has met its invisible ceiling.

      • http://profiles.google.com/booboolala2000 Patrick Crumpler

        And their slow ass iphones. I mean really? When Apple releases the dual core iphone5 the quad core phones and tablets will be released. And still no LTE even. And still a sub 4″ screen. Hahaha. And the white version looks more like a toy than the black.

      • Anonymous

        For tinotino:

        Verizon iPhone Surge Yields First Slip in Android U.S. Sales Share in Two Years

        Market research firm NPD today announced the results of its “Mobile Phone Track” survey for the first quarter of 2011, covering U.S. mobile phone sales. According to the study, Apple rode the strength of the CDMA iPhone launch on Verizon to eat into Android’s share of the smartphone market for the first time since the second quarter of 2009. Android does, however, continue to hold a strong lead in market share.
        The Android OS lost ground for the first time since Q2 2009, falling to 50 percent of smartphone unit sales in Q1 2011 compared to 53 percent in the prior quarter. Apple iOS share rose 9 percentage points to comprise 28 percent of smartphone unit sales. BlackBerry OS also lost ground, falling 5 points, to 14 percent.

        The iPhone surge comes even as Apple has reportedly sliced CDMA iPhone 4 production to half of its initial 2011 projections.

    • Anonymous

      you need to much space just for the baseband modem ..not good for apple when all there devices should be thin ..

      • Anonymous

        That’s why I said to make two versions. Make an iPhone with 3G only for the battery conscious people. Make an iPhone with LTE only for the people who put a higher priority on SPEED!

    • anDROIDfan

      I think they hate LTE!

      • Anonymous

        You know what’s funny about this? These are the same people who were busting Verizon’s balls when it came out that ATT 3G is faster than VZW 3G. Now that Verizon is faster, they claim that speed isn’t that important.

  • Steel

    Translation: Thanks for giving us all of this time w/ Android before you landed on Verizon, Apple. Your services are no longer required.

    • Anonymous

      You’re just as dumb as norm

  • http://profiles.google.com/jonsarik Jonathan Sarkarati

    I also wonder if it’s not selling as well because of contract pricing? I read that not as many people where switching carriers to VZW for the iPhone as expected. Well, that comes as no surprise considering VZW is the most expensive network in this country. I think a lot of people experienced sticker shock when comparing like plans, especially family plans! I remember looking at about a $70 increase per month for an apples to apples comparison between current Sprint fam plan for 3 phones in comp. to Verizon. What kills it are the monthly data charges PER LINE instead of a comprehensive family data charge. In the meantime, love my Android and my savings. :)

    • Wow

      Is it any wonder why Sprint lost over 400 million dollars this quarter? They do not have a sustainable business model. When they made money, they were on par with VZW and AT&T with their pricing models. Now that they are gaining subscribers again, they will have to raise their prices. In fact, they already have. See the $10 smartphone fee per line?

  • Anonymous

    Easy explanation.

    1. Most AT&T users are still on a year or so from getting the iPhone 4 and won’t switch.

    2. Most Verzion users jumped on the Android bandwagon as they got tired of waiting.

    3. With a new iPhone coming in 4-5 months. why buy a Phone 4 now if your on VZW? You waited this long so….

    4. Waiting for a iPhone LTE version.

    5. Most VZW users are stuck in 2 yr contracts with their old 1 yr old fragmented DROID phones.

    • http://www.droiddoes.com/ Norm

      But most android users are like me and buy 3-4 DROID devices a year out of contract. I’m sure they would get the iCrap if they wanted.

      • http://pulse.yahoo.com/_BHMB52ZFMATI5KS7D4JT6UU7NA Eric W

        Wow, Taco bell must be paying well.

      • http://twitter.com/serpicolugnut serpicolugnut

        So, you really think that most Android users are like you and buy 3-4 Android phones a year? You have a really stilted version of reality. Most Android users I know buy their Android phone and hardly use it. They’re cheap skates who will bitch about paying $2 for a high quality app. They bought their Android phone because they were too cheap to buy an iPhone, yet they constantly complain about battery life (and funny enough, none of them have bought a spare battery anyway).

        A few of them bought Android because they wanted to root it and and mod the hell out of it. They’re cheapskates too, but at least they had a rational reason for purchasing it.

        Most of the Android users I know are tired of trying to do the “kill process/application” dance and are looking at moving to an iPhone as soon as said iPhone is available on their carrier.

      • http://twitter.com/DavisDarvish Davis Darvish

        hahaha. you have a really distorted view of reality. There is a difference between being cheap and pay for overpriced apps and hardware.

        i give it to apple. they were the most innovative company when the iphone came out in 2007 … BUT THAT WAS 2007! they havent dont shit since then and charge a premium for their outdated crap phone. but iSheep would never understand.

      • broken_monkey

        I mean, wow! Your just as bad as you claim norm to be. Stereo typing android users as cheap, get a grip! There are iphones on sell for $50 . Yeah im sorry for owning a galaxy s and 3 cars maintaining a family and having a decent paying job. Btw whatever your choice of tech doesnt make better/worse than nxt the guy its your uppity”im better than you” attitude. Find yourself, or go headbutt a butcher knife(sheesh)

      • Anonymous

        Davis Darvish, you show your an complete iDiot. iPhone outdated? Really, so are how many Andriod phones form 6 months ago running Android 2.1? How log do you have to wait for your 2 month old Samsung or Motorola phone to get a OS update? I thought so. How many phones are made nicer looking , better quality and form factor than the iPhone? I say just about NONE.

        if Verizon did not have BOGO for Andriod for how many years to get some market share, where would Google/Android be today? NO WHERE!

        How many Andriod phones can integrated with so many home and car audio solutions? Just about none.

        Apple’s one downfall with the iPhone is having one model and price point, makes it hard to compete with Android in a sense. But at the same time, it make it a GREAT success. One model can integrate sooo well with so many items in your house and car.

      • http://twitter.com/beeds07 Byron Sigh

        I love how iphone users act like they are the Lexus drivers of the cell phone world. If I bought a TV for $1000, then you tell me you bought a TV that does pretty much the same things, but paid $2000 for it, most people would call you an idiot. Only in the world of cell phones will people brag like its cool spending more money for similar things.

        The iphone has its upside, as does android, only I feel like iphone users are sitting around, one, looking down on anyone withoutdrinking their $8.00 Starbucks when the $1.00 coffee shop coffee is the same thing. Unless you own Apple stock, I wouldnt brag about how cool you are spending more on your iphone when it really doesnt do anything more than any other smart phone. Im sure the people making all that stock money sit around laughing at idiots who brag about spending more, when they make all the profits.

      • http://twitter.com/serpicolugnut serpicolugnut

        So, you really think that most Android users are like you and buy 3-4 Android phones a year? You have a really stilted version of reality. Most Android users I know buy their Android phone and hardly use it. They’re cheap skates who will bitch about paying $2 for a high quality app. They bought their Android phone because they were too cheap to buy an iPhone, yet they constantly complain about battery life (and funny enough, none of them have bought a spare battery anyway).

        A few of them bought Android because they wanted to root it and and mod the hell out of it. They’re cheapskates too, but at least they had a rational reason for purchasing it.

        Most of the Android users I know are tired of trying to do the “kill process/application” dance and are looking at moving to an iPhone as soon as said iPhone is available on their carrier.

      • Anonymous

        3-4 a month or a week, depending on the time of year… That’s the exciting part of being a goofan (aka apple hater). Christmas every week!!!! Oh and of course seeing apple fail as they usually do…

      • Anonymous

        No, most Android users buy that many because they phones are outdated and the OS is as well very 3-4 months. Android is getting there. Once they do, they will TRULY give iOS a run for the money.

    • Anonymous

      You nailed it, when i found it wasn’t LTE i felt no reason to switch from ATT after already having an Iphone 4

    • http://twitter.com/MrKow84 Kyle

      well said sir… +1

    • Bringit

      And the Lord said it, and said it well.

    • http://profiles.google.com/booboolala2000 Patrick Crumpler

      And to your second point. And whos fault is that, hmmm, can’t be the company that makes bringit and perspectively so much money.

      • Bringit

        I never jumped on an Android bandwagon. And for the record, there was and is no Android bandwagon to jump on. It’s more of an Android cesspool that preys on unwitting masses.

  • Anonymous

    very appropriate article with a picture of an iPhone with No Service. Works on multiple levels.

  • Anonymous

    Most? I don’t know about most. Personally, there’s no way I’m going to spend $500-700 on an out of contract phone just to have the latest. That said, I would if I could! I’m actually jealous of you!

  • Anonymous

    Let’s use some logic here.

    Q1, in 7 weeks, 2.2 million Vphones sold, so about 1 million a month.

    Assuming iPhone 5 is launching in September, that gives us May, June, July, and August, so 4 months of further iPhone 4 sales on Verizon, not accounting for the surefire drop in sales in August as inventories dwindle in anticipation od iPhone 5.

    4 months x 1 million = 4 million iPhone 4 sales
    So a total of 6.2 million iPhone 4 sales for 2011.

    I’d you take out August, you end up with 5.2 million.

    If you do the math, there are no surprises.

    • Yes_iHave_a_iPhone

      Stop trying to make yourself sound like you have some intellect.. Go play on your Mac while wearing your Apple t-shirt, while attempting to make a call on your iPhone, also while being tracked by Steve Jobs :]

      • Anonymous

        I can’t make calls on my iPhone.

  • keymaker

    It’s a rumor People, i doubt it to be true cause Apple didn’t build the CDMA model just for Verizon.

  • http://twitter.com/salomondrin Alejandro Salomon

    They didn’t sell that many on Verizon simply because a lot of people said “I’ll wait for the new one that’s coming out this summer”. As soon as that one comes out it’ll balance the sales for the CDMA version of the iPhone. The original release was just at an awkward time…

    • Anonymous

      As we all know nothing is coming out this summer and what’s coming after that will not much of an improvement either.

  • Anonymous

    After all, who wants to buy a brand new 10 month OLD phone and commit to a NEW TWO-YEAR contract. Especially, when Verizon (and, other carriers) have a boat load of other smartphones that can kick some iPhone 4 a$s. I would take a brand new 10 month old EVO 4G over a CDMA iDudd.

    • Zack

      Wrong!

  • Anonymous

    1. the iPhone 4 came to Verizon half way in to its life cycle.

    2. Some people were waiting for a white iPhone

    3. Rumors of iPhone 5 has a lot of people waiting on the fringes now, to the point where the White iPhone 4 might suffer from the iP5 rumors.

    Whats funny is too many people too quickly try to predict doom and gloom on many companies. Especially on Apple. Well then if history provides and clues, they’ll be fine.

    I say if you thought the iPad 2 availability was ridiculous, just wait until when the iPhone 5 comes to AT&T and Verizon at the same time. New records will be set for a new phone on both carriers. And they’ll be tough to come by. I think it for Apple to stagger the release would hurt sales and have people do the waiting game again.

  • http://www.iphoneleaks.net iphoneleaks.net

    i think Apple is at top due to reguler changes made by it. that’s also a great change made by it

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