CUPERTINO, USA – Technology giant Apple has allegedly sent a word to its suppliers that it would be reducing its component orders owing to weak iPhone 5 demand.
Apple’s iPhone 5 was the best selling smartphone of Q4 2012 but it didn’t meet the company’s sales expectations. Some sources indicate that Apple has cut nearly half of its component orders owing to the current market scenario.
Snapshot of Apple share performance
While there are no specific reasons for the decline in iPhone 5 demand, it is believed that cheap iPhone rumours might have something to do with this. On the other hand, Apple’s stock plunged below the $500 mark mainly because of the reports related to weak iPhone 5 demand. Many experts believe that the dip in Apple’s shares might be lie in rising doubts related to the company’s future growth potential.
Given the hype created before the iPhone 5 launch, a few analysts predicted that Apple’s stock might reach $1000 per share. However, the present scenario is much different from this projection. Reports of Apple’s order cuts have sent some shock waves among Apple investors and this can be witnessed in the recent performance of Apple shares.