Reports suggesting that Apple has reduced its orders for the iPhone 5 display panel by half have resulted in a 3.5% fall in the shares of the Cupertino based company.
All’s not well for Apple, it seems. According to the Wall Street Journal, Apple has cut its orders last month for iPhone5 screens for the first quarter of the 2013 calendar year by roughly half its original target, a possible sign that demand for the Smartphone is not quite as strong as Apple expected. It has also reportedly trimmed orders for other screen sizes as well.
Analysts had earlier predicted that Apple would face challenges selling the iPhone and iPad this year in the face of intense competition from its android powered rivals, namely Samsung, who reported a record profit last quarter.
It comes as no surprise that the iPhone 5 has been a runaway success for Apple and has been flying off the shelves since its September release. Although initially speculated whether the iPhone 5 could beat the sales record of its predecessor, i.e. the iPhone 4s, It now seems that the iPhone 5 has had the strongest start sales-wise in the U.S. over any previous iPhone.
The iPhone 5 managed a record of sorts by selling out 2 million units in the first three days of its availability in China. It appeared that China had become a more lucrative market than the US. However, the latest sales figures tell a different story as in the US at least, over the last 12 weeks the sales of the iPhone 5 have accounted for 53.3% of smart phone sales overall.