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Apple cuts iPhone 5 component orders in half

Posted on Monday, January 14 2013 @ 15:55:24 CET by

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Information Week came across reports that Apple has cut orders for iPhone 5 components by about 50 percent for the first quarter of 2013. The news comes hot on the heels of a rumor that Apple is working on a cheaper iPhone, which was promptly denied by the company.
Specifically, Apple has asked Sharp, Japan Display Corp. and LG Display to reduce output of the iPhone 5's LCD panels by about half for the first quarter of 2013. Apple had originally asked for 65 million LCDs. Citing sources familiar with Apple's plans, both The Journal and the Nikkei suggest that the move is being made due to weaker-than-expected demand for Apple's latest iPhone. The change in plans was made last month.

Apple isn't just cutting back on display panels. It has also cut orders for memory chips. If accurate, the reports would gel with what analysts have been saying with respect to demand for the iPhone 5, which is not selling as strongly as Apple hoped. Its stock price plunged ahead of the market's open on Monday.



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