Apple Cuts Orders For iPhone Screens In Half

Apple Cuts Orders For iPhone Screens In Half


In a sign iPhone demand is not meeting Apple’s original expectations, the Cupertino, Calif. company has cut its orders for iPhone 5 screens in half in the first quarter, according to the Wall Street Journal. Reports indicate the tech giant has also decreased orders for other LCD screen sizes, as well.

Suppliers Japan Display, Sharp and LG Display have all been asked to cut LCD panel orders in half from an original request of 65 million screens for the period of January through March. If reports are correct, the move mirrors recent analyst suggestions that predict Apple will face challenges selling its mobile devices in 2013. Last month UBS analyst Steven Milunovich cut his iPhone sales estimates for the first three quarters by 5 million units per quarter, and slashed iPad sales estimates by 2 million per quarter.

Other analysts, however, point out that Apple often reduces its component orders when it is preparing to launch a new product. Apple has been rumored to be moving to a six-month release schedule for new iOS devices, and therefore, the fewer component orders could indicate the iPhone 4S product launch can be expected shortly.

With any luck, Apple will provide a full explanation for the decision at its financial conference call. But shareholders and tech-followers will have to wait until Jan. 23 to find out.

[Image via Brett Jordan/Flickr]

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