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Apple cuts iPhone 5 component orders, due to weak demand

According to a report from the Wall Street Journal, Apple have asked their suppliers to reduce part orders for the iPhone 5 due to ‘weaker than expected’ demand. Some of these orders have been cut in half from the original expectations.

Sources in direct contact with the WSJ said that Apple have cut ‘roughly half’ of their orders for the iPhone 5’s 4 inch screen and have started a slowdown of production of other components for Q1 2013.

The drop in demand for the iPhone 5 has not been connected to any single event, but the ongoing rumours of a ‘cheap’ plastic body iPhone being released in 2013 may have damaged sales.

According to the report, Apple partners are looking for business elsewhere, to subsidise the drop in demand for their components. Apple are currently acquiring the 4 inch Retina display panels for the iPhone 5 from LG Display, Japan Display and Sharp.

Kitguru says: Apple initially struggled to keep up with demand for the iPhone 5, but they caught up in mid December 2012.

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