The Cupertino-based
tech giant cut orders of the iPhone 5 screens by roughly 50 percent last month,
a possible sign of sagging demand, sources tell the Wall Street Journal.
Apple is reportedly
dialing down its iPhone component orders, a possible sign that demand for the
smartphone is not quite as strong as Apple expected.
Apple cut its orders
last month for iPhone 5 screens for the first quarter of the 2013 calendar year
by roughly half its original target, sources tell The Wall Street Journal. The
Cupertino, Calif.-based tech giant also reportedly trimmed orders for other
screen sizes as well.
The report appears to
support the forecast of at least one analyst, who predicted last month that
Apple would face challenges selling its iPhone and iPad. In December, UBS
analyst Steven Milunovich slashed his iPhone sales estimates for the March,
June, and September 2013 quarters by 5 million units each quarter, while sales
estimates for the iPad were cut by 2 million per quarter.
Milunovich also trimmed
his earnings estimates for Apple for fiscal 2013 and 2014 and lowered the
stock's target price to $700 from $780. Apple is expected to announce its
fiscal first-quarter financial results on January 23.
Once the dominant
smartphone and tablet seller, Apple has faced challenges on both fronts. The
iPad's market share has been sliced by lower-priced Android tablets, while the
Galaxy S lineup of smartphones recently edge out the iPhone for the smartphone
market crown.
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