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Apple Cutting Back its Orders for iPhone Components

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Apple has been reducing orders it places with iPhone component suppliers, apparently due to weaker than expected demand for its latest smartphone.

Apple's orders for display screens in this financial quarter are down by a half on previous expectations, the Wall Street Journal reported, citing two people familiar with the situation.

Countering possibilities that the company has stock-piled display screens or was looking at other suppliers, the company has also reportedly cut back orders for other essential components across its supply chain.

Normally a reduction in component orders is taken as a hint that the company is winding down production of an older model in favour of a replacement, but these cuts are reductions in expected orders and outside the company's usual handset replacement cycle.

Apple has been coming under increasing pressure from Android and Samsung in particular and suggestions of weak sales will increase calls for the company to expand its product range away from just the one high-end handset to the larger mid-market consumer base.

Apple is due to report its financial results later this month.

On the web: Wall Street Journal

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Tags: apple iphone