iPhone 5

iPhone 5 is still in high demand despite the recent report of Apple Inc. (NASDAQ:AAPL) cutting back on component supplies for the device.

Shaw Wu, an analyst for Sterne Agee, recently sent a note to investors that his checks and suppliers  prove the demand for the sixth generation smartphone hasn’t slid and he doesn’t think the recent supply cuts are really anything to worry about. Wu isn’t the only analyst who thinks this.

JPMorgan Chase & Co. (NYSE:JPM) analyst, Mark Moskowitz,  speculated these reports just cause investors to overreact. Maynard Um (Wells Fargo) added that these reports are really not news.

He further explains that Apple’s reduced orders are actually a result of improved yields which means the company reduced the need to order more component supplies. He also thinks supplier shift changes affected the need.

Last Sunday, Apple asked their suppliers to send fewer supplies for the iPhone 5 and when the report got to investors on Monday, shares for Apple Inc. (NASDAQ:AAPL) dropped as concern for the company rose.

The cutbacks may have promoted significant concern for Apple investors but the real concern may come from competition like Samsung. The South Korean tech giant helped shift consumer interest from Apple Inc. (NASDAQ:AAPL) to their company thanks to the line of Galaxy S smartphones. It also didn’t help that some Apple fans were disappointed with the last two generations as they had higher expectations for the cutting edge device.

Despite disappointments and shortcoming from the latest Apple Inc. (NASDAQ:AAPL) device, there are many reasons Apple investors should relax. A recent report indicated that many iPhone 5 users have replaced traditional cameras with their smartphone. Savvy tech users love the fact they can take pictures on their smartphones and share them instantly on the web. With a high-resolution 8 megapixel camera, it’s easy to see why people would ditch their old digital camera.