Apple Orders For iPhone 5 Parts Slashed Says WSJ

You can read this in one of two ways. The iPhone 5 isn’t as successful as previously thought, or there is a new iPhone coming. Either way, Apple stock dropped on the news that Apple has allegedly slashed orders for components that are used in the iPhone 5:

Apple shares fell in premarket trading Monday after The Wall Street Journal reported that the company has cut its orders for iPhone 5 components due to weaker-than-expected demand.

The newspaper said that two people it did not identify by name told it that Apple’s first quarter orders for iPhone 5 screens have dropped to about half of what the company had previously planned to order.

It said one of the people told the newspaper that the Cupertino, Calif., company has also cut orders for components other than screens. The Journal said it was told Apple notified the suppliers of the order cut last month.

So, here’s the big question: What’s behind this? Care to place a bet? Care to make a comment below with your thoughts?

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