Apple cancels parts orders as iPhone and iPad sales slow
Cupertino, CA, United States (4E) – Reports are coming out that Apple’s popular iPhone isn’t selling as well as expected. Orders for components used for the iPhone are slowing down according to The Wall Street Journal. Screen sizes used for its devices have also slowed down.
The Cupertino-based company canceled half of its orders for iPhone 5 screens for the first three months of this year.
The situation Apple finds itself in was accurately predicted by UBS analyst Steven Milunovich. Milunovich predicted Apple would lose iPad sales by 2 million per quarter and iPhone sales by 5 million each quarter.
Milunovich also predicted that Apple’s stock would drop from $780 to $700.
A slew of cheaper Android tablets have cut into iPad sales and Samsung’s Galaxy S smartphones have overtaken the iPhone.
“While Apple has set the agenda for the smartphone market since it released its first iPhone in 2007, South Korea’s Samsung, which sells many Android-based models at various price points, has already overtaken the U.S. company as the world’s largest smartphone vendor by market share. Demand is also growing for inexpensive smartphones from Chinese makers such as Huawei Technologies Co.,” The Wall Street Journal reported.