Apple Cuts Order for iPhone Parts on Weak Demand
January 13, 2013, 8:51 p.m. ET
By JURO OSAWA
Apple Inc. AAPL -0.61% has cut its component orders for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday.
Apple's orders for screens for the January-March quarter, for example, have dropped to roughly half of what it had previously planned to order, two of the people said. The U.S. company has also cut orders for components other than screens, according to one of the people.
Apple notified the suppliers of the order cut last month, they said.
The move comes at a time when Apple faces greater competition from South Korea's Samsung Electronics Co. 005930.SE +0.13% and other makers of smartphones powered by Google Inc.'s GOOG -0.20% Android mobile operating system.
Apple released the iPhone 5 in September. The latest model comes with a longer, 4-inch screen compared with the 3.5-inch screens used in all previous iPhone models.
Apple representatives weren't immediately available for comment.
Japan's Nikkei reported earlier Monday that Apple has slashed its orders for iPhone 5 components.
If this old news causes the stock to plummet, maybe us longs should open a class action law suit for losses due to lies and misinformation. Those #$%$ in Japan are trying to ruin Apples image to bolster the image of Samsung. Samsung has copied off all Apples products, they are pathetic.
Keep telling the longs that AAPL will miss earnings big and iPhone 5s are not selling - like talking to rocks... All the data pointed to this big miss, all the analysts have been saying this for the last few weeks...
All of the data points to huge sales. Usage studies, announced sales figures and other data all show that. These vague rumors of order cuts show absolutely nothing, have been cropping up for years and have always proven to be groundless. Remember Alex Guana? In this case Apple supposedly ordered 65 million screens for the current quarter. If Apple did cut order to just half of that they are still expecting sales to be wildly above analyst estimates.