Apple issues fewer manufacturing orders for iPhone 5

[RaduTyrsina]

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Apparently, stepping in a brand new year filled with opportunities isn’t turning out to be so swell for Apple. We have been just receiving some puzzling information via The Wall Street Journal stating that the tech giant has asked his Japanese and South Korean partners in charge of manufacturing parts to cut down the supply for iPhone 5. What that means exactly is that companies like Sharp Corp and LG Display Co. Ltd will have to axe off the initial 65 million unit shipment, due to low demand.

It seems that Cupertino has been getting less and less orders for its the iPhone 5 and has now decided to do something about it to minimize loss. The Display plant in Nomi, Japan will temporarily reduce the production of iPhone 5 parts by as much as 70-80%, when compared to the months of October to December of 2012.

Sharp’s other plant, situated in Mie Prefecture, will also slow down manufacturing in the upcoming months by up to 40%. Compared with the previous months, the factory ran up almost at full capacity.

Some analysts have been releasing information saying that for the first time, in quite a while, Apple will be faced with challenges related to selling the iPhone and iPad. For example, UBS analyst, Steven Milunovich, already axed down his sales figures for the months of March, June and September, subtracting more than 5 million units for each quarter. While at it, he also axed 2 million units off his iPad estimate.

Source: WSJ