A not very good year starter for Apple?
According to sources, Apple has slashed down orders for iPhone 5 parts because of a weaker-than-expected demand of iPhone 5 purchases. This is the second not-so-good news for the tech giant after being slumped down by biggest rival Samsung last quarter.
The Cupertino-based company has cut back its orders to its suppliers last month. The Wall Street Journal noted that screens of iPhone 5 for months of January up until March were cut to half compared to the expected level of the company.
According to Citi analysts, these reported cut downs result from notices last December that the inventory of the new iPhone for the first quarter of 2013 seemed to be blown up to more phones than required being built in the quarter of December.
In addition to this, Forbes noted a comment from Peter Misek, an analyst from Jefferies saying that during the period when iPhone component orders for the first quarter had been cut down to nearly 25-35 million units from the original 35-40 million units, regardless of the prolonged shortages among retailers.