The recent cut in components has led many to believe that Apple has overestimated the current demand for its handset, while others have begun to speculate the health of the tech manufacturer.
Apple’s orders were for iPhone 5 screens for the January to March quarter. According to report from Nikkei, Apple has asked the Japan Display Inc., Sharp Corp, and LG display to cut the original orders roughly in half. It is also been reported that Apple has cut its orders for additional components of the iPhone 5.
In light of the Nikkei report, the once bullish outlook on Apple has become far more skewed causing the company’s stock to dip below $500 at one point today. Since then the stock has made a slight rebound, but still remains down over 3 percent on the day.
While many have linked the recent cut in component orders to a declining demand for the iPhone 5, the recent cut may have simply been a result of Apple overestimating consumer demand. Until Apple actually releases a statement about the matter it will remain up in the air.
Regardless, the road ahead for the iPhone 5 will be one full of competition. Research in Motion is gearing up for the release of its business oriented BlackBerry 10 platform at the end of this month, and Samsung is set to release its new flagship Galaxy S IV later this year.