Technology giant Apple is reportedly cutting component orders for its new mobile phone, the iPhone 5, due to weaker-than-expected demand. The Wall Street Journal also reported that share in the company fell by as much as 3.6% on Monday’s trading day.
“The newspaper says two people it did not identify by name told it that Apple’s first-quarter orders for iPhone 5 screens have dropped to about half of what the company had planned to order. The report says one of the sources told the newspaper that the US-based company has also cut orders for components other than screens,” news agency AP wrote.
According to WSJ, the order to cut back on screens and other components was given last month already, but Apple declined to give comment on the current situation.
Apple’s iPhone 5 is the follow up from 2011’s iPhone 4S, and received over two million pre-order within 24 hours, with the figure rising as to as much as five million units in the first three days of release.
According to a TechCrunch report, “shortly after the announcement of the iPhone 5 and preceding the launch, Apple’s stock price rose to a record $705.07, but within three months fell to $507.48.” On Monday’s premarket trading stocks dropped by $18.81 to $501.49, but regained somewhat to $504.32 at the time of writing.
Charlie Fripp – Consumer Tech editor