Apple cuts LCD panel orders for iPhone 5 due to weak demand.
Apple Inc has almost halved its order with suppliers of LCD panels for the iPhone 5 in the current quarter due to weak demand, the Nikkei reported on Monday.
Apple has asked suppliers Japan Display Inc, Sharp Corp and South Korean company LG Display Co Ltd, to cut supply, down from an initial plan to order about 65 million units in the quarter, the Japanese daily said.
Japan Display's plant in Nomi, Ishikawa Prefecture, where the iPhone maker has invested heavily, is expected to temporarily reduce output by 70 percent to 80 percent compared to the October to December period, the financial daily reported.
Sharp's dedicated facility for iPhone 5 LCD panels in Mie Prefecture will lower production in January and February by about 40 percent from the October to December quarter, when it was near full capacity, the daily said.
An Apple spokesperson was not immediately available for comment outside regular business hours.
[So much for smartphone growth for Apple.
I wonder if people are waiting for better products from Lenovo and Motorola with Intel chips.
And if Google's Android is taking market share, this could be good for Intel since Google has been working very closely with Intel for over a year now to optimize Android to x86 Intel chips]
Yearly January options are expiring this week. Apple stock typically rises 50% every year. MM's have to temporarily drive down Apple stock to reduce the value of long term Apple options prior to expiration to deny benefits to retail options traders. So negative hype, negative rumors are very common every January just before options expiration. Just recall what was happening at the same time last year.
I think options trading is the single most effective factor which drives (involves heavy manipulation) short term share prices. Yet main stream media and trading text books refuse to acknowledge this factor, instead attributing share price movements to something happening in some corner of the world.
The above are just my thoughts - what I think is most probable. It is also possible that today's rumor is true. If true what are implications for Intel?
Apple's loss must be coming at Samsung's gain. Not good for Intel either. Apple holding on to market share would keep Intel's hopes alive. But Samsung reduces Intel hopes in smartphones. If Android market share was coming from diverse ODMs/OEMs it would be good for Intel. But it is mostly concentrated in the hands of Samsung which will be in no mood to use Intel SOC's (until and unless Samsung starts loosing market share to Intel-Motorola or Intel-Lenovo partnership. Intel still has has a lot to do for that to happen).