If Apple really ordered 65M displays for Oct - Dec and have cut that in half to 32.5M in Jan - Mar, then, that's 97.5M displays for 2 periods when the 4 and 4S still make up a very meaningful % of their business. How this bodes poorly for demand, I have no idea.
Apple only did 45 - 50 million total smartphone sales Oct - Dec. quarter 2012, which was big growth over same quarter in 2011. But it meant no more than 25 million IPHONE5 sold Christmas quarter 2012. So how could cutting orders for LCD displays to be only 32.5 million (half of 65 mn.) in Jan. - Mar. 2013 quarter imply anything but growth in IPHONE5 Sales?