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Apple's iPhone Component Suppliers Fall as the Company Cuts Orders Due to Weaker-Than-Expected Sales

NEW YORK, NY--(Marketwire - Jan 16, 2013) - Apple chip supplies fell Monday after reports that weaker-than-expected demand for the iPhone 5 have caused the company to cut orders for iPhone parts. Shares of Apple fell below the $500 mark for the first time since February. Research Driven Investing examines investing opportunities in the Semiconductor Industry and provides equity research on ARM Holdings plc ( NASDAQ : ARMH ) and OmniVision Technologies, Inc. ( NASDAQ : OVTI ).

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The Wall Street Journal, citing "people familiar with the situation," reported that Apple has cut orders of screens and other handset components. Orders of iPhone 5 screens for the January-March quarter have fallen to approximately 50 percent of what Apple had initially planned, according to the WSJ. Samsung, makers of the popular Android-based Galaxy phones, has surpassed Apple as the world's largest smartphone merchant. In the third quarter, Apple was responsible for 14.6 percent of world-wide smartphone shipments, while Samsung's market share grew to 31.3 percent.

"The move indicates that sales of the new iPhone haven't been as strong as previously anticipated and demand may be waning," the WSJ stated.

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ARM designs the technology that is at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. The company's A5 and A6 processors are used in Apple's iPhone and iPad products. Shares of the company have gained over 50 percent in the past year.

OmniVision Technologies designs, develops and markets integrated and semiconductor image-sensor devices. The company's main products, image-sensing devices, capture an image electronically and are used in a number of consumer and commercial mass-market applications. The company reported revenues surged to $390.1 million in the second quarter of fiscal 2013, compared to $217.9 million in the year-ago quarter.

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