News is coming in from multiple sources that Apple has cut its orders for iPhone 5 components by almost half in the anticipation of weaker-than-expected demand in the current quarter. While, these reports from WSJ and Reuters (quotes Nikkei) don’t really give any exact numbers, so it is hard to pinpoint an exact reason for Apple’s actions.
According to Wall Street Journal, Apple’s orders for iPhone 5 screens for the January-March quarter have dropped to roughly half of what the company had previously planned to order. Reuters, which quotes Japanese publication Nikkei, also reports the order cuts for LCD panels being used in iPhone 5.
“Apple Inc has almost halved its order with suppliers of LCD panels for the iPhone 5 in the current quarter due to weak demand,” noted Reuters in a news report.
According to Reuters, Apple is reducing the LCD orders from the earlier planned 65 million units, but did not reveal the exact number of new LCD panel orders from the iPhone maker.
WSJ adds that it is not just LCD panel orders that Apple is cutting, it has also cut orders for other key components, quoting an unnamed source. The Cupertino based company had apparently notified the suppliers last month about the revised orders.
Several theories are floating around to explain this alleged action from Apple, one of the most prominent theories is that the iPhone 5 sales might not have been as strong as previously anticipated and demand may be fading.
Another notion is that the early arrival of new iPhone 5s might be reason why this fruity company is cutting LCD orders, as the rumoured iPhone 5s uses a new display technology “Touch On display.”