Apple Inc. has reduced the order of LCD displays for iPhone 5 to about the half in the current quarter of January to March that may be due to the weak demand as reported by Nikkei on Monday. One reported cited that the order decrease expands beyond screens.
Apple has asked the suppliers including Japan Display Inc, Sharp Corp and South Korean company LG Display Co Ltd, to cut supply that has been decreased from an initial plan to order about 65 million units in the quarter as reported by the Japanese daily.
According to financial daily, Japan Display’s plant in Nomi, Ishikawa Prefecture, is expected to decrease the output by 70% to 80% compared to the October to December quarter. On the other hand, Sharp’s devoted facility for iPhone 5 LCD panels in Mie Prefecture is expected to decrease the production in January and February by about 40% from the October to December quarter.
It is also to be considered that the decreased demand of iPhone 5 could not only be the reason for cutting the order as it is also possible that Apple is preparing for the new models as some reports showed that the company has started making trials of new iPhone or it could be switching to the other suppliers.