Apple scales down iPhone component orders
14 Jan 2013
Apple is said to be scaling down its iPhone component orders, a sign that demand for the smartphone was not quite as strong as Apple expected, according to experts.
The iPhone maker nearly halved its iPhone 5 screen orders for the first quarter of the 2013 calendar year, The Wall Street Journal reported citing sources.
It said the Cupertino-based technology giant also reportedly cut orders for other screen sizes as well.
According to commentators, the report appeared to support the view that Apple would face challenges selling its iPhone and iPads.
According to CNet, in December UBS analyst Steven Milunovich reduced his iPhone sales projections for the March, June, and September 2013 quarters by 5 million units each quarter, even as sales estimates for the iPad were pared by 2 million per quarter.
Trimming his estimates for Apple for fiscal 2013 and 2014, Milunovich had also lowered his expectations of Apple stock's target price down to $700 from $780. The company is expected to announce its fiscal first-quarter financial results on 23 January.
The one time dominant smartphone and tablet seller, is now finding the going tough on both fronts. The iPad's market share has been cut by lower-priced Android tablets, while the Samsung's Galaxy S lineup of smartphones recently edged the iPhone out of the smartphone league's top honours.
