Report: Apple drastically cuts orders for iPhone 5 displays

The announcement of the iPhone 5 in September 2012 was the biggest one yet for Apple's iOS smartphone, thanks mostly to the new design of the phone that increased the size of its screen from 3.5 to 4 inches. Now a new report claims that Apple has cut down the orders of that same LCD screen from its third party manufacturers.

Reuters reports that, according to what unnamed sources told the Nikkei Japanese news service, Apple had originally told Japan Display, Sharp Corp and LG Display that they would need a total of about 65 million units of iPhone 5 displays in the current quarter. The report says that Apple has now told those display suppliers that those unit orders have been cut to almost half that amount.

The story goes on to say Japan Display's factory will reduce its output to as much as 80 percent for the current quarter, while Sharp will reduce its output by 40 percent.

If these reports are indeed true, it's likely that sales of the iPhone 5 have not met Apple's previous expectations. Some have speculated that the lower prices of many Android and Windows Phone-based smartphones are now eating into the iPhone's market share. There are persistent rumors that Apple is planning to launch a new version of the iPhone that will have a lower price to better compete with these budget smartphones.

Source: Reuters | Image via Apple

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