iPhone 5

As analysts continue to hit Apple (AAPL) hard, a new report claims the postmortem ultimately written on the iPhone 5 will reveal disappointing sales relative to initial expectations. Market research firm Strategy Analytics recently released a report claiming that Apple’s latest iPhone was the best-selling smartphone in the world during the holiday quarter last year, allowing Apple to reclaim the No.1 spot after Samsung’s (005930) Galaxy S III stole the crown earlier in 2012. Despite the phone’s current popularity, however, Raymond James analyst Tavis McCourt believes the phone will ultimately disappoint. More →

Original device manufacturer Foxconn has reportedly put a hold on hiring new workers after Apple (AAPL), its largest client, cut iPhone 5 production. The Financial Times relayed the report on Wednesday, citing statements made in internal notices circulated at Foxconn. “Currently, none of the plants in mainland China have hiring plans,” a Foxconn spokesperson told FT, and hiring will reportedly be on hold until “at least the end of March.” It is unclear if the reduced iPhone 5 orders were planned or if production was trimmed recently in response to declining demand. More →

UBS is the latest in a long line of me-too firms to trim its outlook on Apple (AAPL) as investor sentiment continues to sour. In a note to clients picked up by Forbes on Tuesday, UBS analyst Steve Milunovich cut his estimates for fiscal 2013 and 2014 after a survey from Consumer Intelligence Research Partners found that consumers are opting for cheaper iPhone models (iPhone 4S and iPhone 4) and iPhone 5 handsets with less storage. If the survey is accurate, both scenarios obviously could have big implications for Apple’s margins. More →