Apple reportedly cuts iPhone screen orders on weak demand

The Cupertino-based technology giant cut orders for iPhone 5 screens by about 50 percent last month, a possible sign of sagging demand, sources say, the Wall Street Journal.

Apple's iPhone 5.

Apple’s iPhone 5.

(Credit: CNET)

Apple is reportedly selection down its orders for iPhone components, a possible sign that the demand for smartphones is not as strong as Apple intended.
The company cut its orders last month for iPhone 5 screens for the first calendar quarter of 2013 to about half its original purpose, the sources told the Wall Street Journal. The giant of Cupertino, Calif.-based technology also reportedly cut orders for the screen size as well.
CNET contacted Apple for comment and update this report when we learn more.

The report seems to support the provision of at least one analyst, who predicted last month that Apple would have to face the challenges of selling its iPhone and iPad. In December, UBS analyst Steven Milunovich cut estimates of iPhone sales for 2013/4 March, June and September to 5,000,000 units every quarter, while sales estimates for the iPad have been reduced by 2 million to quarter.
Milunovich also cut earnings estimates for Apple’s fiscal 2013 and 2014 and lowered target price of the stock to $ 700 from $ 780. Apple is expected to announce its financial results for first quarter financial Jan. 23.
Once the dominant seller smartphones and tablets, Apple has been facing challenges on both fronts. The market share of the iPad was cut low-priced Android tablets, and the Galaxy S line of smartphones recently edge out the iPhone for the crown of the smartphone market.

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