There had been rumors that Apple was cutting orders for iPhone and iPad parts because of decreased demand. On a recent earnings call, Apple CEO Tim Cook sought to quash those rumors thoroughly.
"There's been lots of rumors about cuts... I would suggest it's good to question the accuracy of any kind of rumor about these plans," said Cook. "Even if a particular data point was factual it would be impossible to interpret the data point. There's just an inordinately long list of things that would make any single data point not a great proxy for what's going on."
Despite record sales of iPads and iPhones, the company did not meet analysts expectations. While some think that Apple will launch a cheaper iPhone as a result, Cook responded to a question on such by saying, "I'm not going to go into our pricing strategy, but we feel great about getting products to customers” and noting the three-figure growth in China, hinting that the company might not have any need to introduce a cheaper iPhone.
On the issue of screen size, Cook said, "The iPhone 5 has a 4-inch Retina display, which is the most advanced display in the industry... This provides a larger screen size to iPhone customers without sacrificing ease of use. We put a lot of thought into screen size and feel confident we picked the right one.”
While Samsung has done well with its 5” Note and Note II, it seems such a product is unlikely from Apple.