Monday, January 14, 2013

WSJ: Apple cuts iPhone 5 component orders in half due to weak demand

Apple reportedly sent word to suppliers in December that it would be reducing parts orders for the recently released iPhone 5 on "weaker-than-expected" demand, with some orders being cut in half from original expectations. ?


Sources familiar with the matter told The Wall Street Journal that Apple cut "roughly half" of its orders for the iPhone 5's 4-inch screen and initiated a drawdown on other components orders?for the January to March quarter.?

It is unclear what exactly is to blame for the reduction but ongoing rumors point to the possible introduction of a cheaper model to the iPhone line sometime in 2013.?

The WSJ report is joined by a corresponding article from the Nikkei (via Brightwire), which claims the revised Apple orders have prompted Japanese LCD makers to look for business elsewhere. Apple is sourcing the 4-inch Retina displays used in the iPhone 5 from Japanese manufacturers Japan Display and Sharp, as well as South Korea's LG Display.

Supply of the iPhone 5 finally caught up to demand in mid-December when a number of international Online Apple Stores listed the smartphone as being in stock for the first time since its launch at the end of September.?

Source: http://appleinsider.com/articles/13/01/14/wsj-apple-cuts-iphone-5-component-orders-in-half-due-to-weak-demand

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