iPhone 5 was released last fall and since there was such a high anticipation, buyers rushed to make their pre-orders. The buzz however seems to have taken a plunge over the past few months, particularly after many users started reporting battery life issues and network coverage caveats with their iPhone 5. There have been several reports by now that talked about a poor demand for iPhone 5 that would eventually harm Apple’s revenue. On Monday, Nikkei reported that Apple has slashed its orders for iPhone 5 parts for the quarter.
On Monday, Japanese newspaper Nikkei informed that Apple has decided to reduce its order for iPhone 5 parts, in particular for the liquid-crystal display panels. According to the Japanese newspaper, Apple reduced to half its orders from its three suppliers Japan Display, Sharp and LG Display. The previous order was for 65 million units in the quarter from January to March. The newspaper estimates that Japan Display will cut its LCD display output somewhere from 70% to 80% compared to the last quarter production.
The report from Nikkei hasn’t been confirmed by Apple yet, but that hasn’t stopped the markets from taking a plunge. Before the bell, Apple shares fell more than 4 percent at $498.20, a deep plunge compared to Friday’s closing figures at $520.30 on Nasdaq. The report and plunge in Apple stock also impacted the performance of the company’s suppliers, Cirrus Logic Inc and Qualcomm Inc.
It’s not the first order Apple slashes for iPhone 5 parts. Back in September 2012, Reuters was writing that Apple cut down its orders for memory chips that were supposed to be integrated in iPhone 5. The report wasn’t confirmed by Apple, but the explanation read that the company is only seeking to diversify its supply sources for memory chips.
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