A recent report from DigiTimes, which cites inside suppliers, reveals that production of the Verizon CDMA iPhone 4 has been scaled back, with Apple reducing its order with Taiwan-based supplier Pegatron from 10 million units to just 5 million. Though the report does not give a reason for such a significant reduction, it is believed that sales of the device have been lower than expected.
Low sales would contradict Verizon’s predictions, however, who announced during its latest fiscal results call that it expected to sell around 11 million iPhones in 2011. The carrier has sold 2.2 million devices since its launch, despite missing the first half of the quarter. It seems, however, that sales has begun to dip – possibly due to the device launching so late into the iPhone 4’s product cycle and a fifth-generation device just months away. In additional to many customers still being locked into existing contracts.
The iPhone 4 launched for Verizon early February after years of speculation surrounding a Verizon-compatible iPhone. The device was slightly altered to include a CDMA chip – compatible with the Verizon network – and a revamped antenna design, which combats a loss of reception due to the “death grip.”
The fifth-generation iPhone, which is expected to launch in September, is expected to feature a dual-band wireless chip that would support both GSM and CDMA networks. This would mean that one device would support both AT&T and Verizon, as opposed to having two different devices for each network, which is the current setup.[via MacRumors]