The Journal's explanation for the cuts is pretty simple: "Apple has cut its component orders for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday."
Here are some more details from the WSJ:
"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."
Rumor of Apple's iPhone order cuts have been circulating for a month. Interestingly, analysts have been raising their iPhone estimates lately. Many of them are anticipating Apple's March quarter is a mess.
Apple reports earnings in two weeks, so we'll hopefully get a better read on the state of the iPhone then. Right now, it doesn't sound good.
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