Apple has reportedly reduced its orders for iPhone 5 components due to less than anticipated demand for the smartphone.
According to the Wall Street Journal, Apple has cut its order for iPhone 5 screens to around half of what it originally planned for the January-March quarter and has also slashed its orders for other components.
The iPhone 5 was first unveiled in September, offering a larger screen, support for 4G Long Term Evolution networks and a brand new eight pin connector and there were concerns suppliers might even struggle to keep up with demand.
The move is being interpreted as a sign that appetite for the iPhone 5 is slowing and that Apple is facing intense competition from Android manufacturers, such as Samsung, that sell smartphones at a number of different price points. Apple has denied rumours it is looking to combat this threat by releasing a cheaper version of the iPhone.
Only last week, Samsung unveiled its new eight core Exynos 5 Octa mobile processor as it looks to diversify its customer base due to the anticipated drop in demand from Apple for its chips. This is not due to a lack of demand but down to the increasingly frosty nature of the relationship between the two mobile giants, who have been engaged in a number of bitter patent disputes.
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