Apple Cuts Back on iPhone 5 Parts

Apple’s stock has dropped following reports that the Cupertino, California company has scaled back on manufacturing parts for the iPhone 5.

CNET has a rundown of the affair that details how the company’s stock portfolio took a dive down to $500 a share following reports from the Wall Street Journal and Japan’s Nikkei, which detailed how Apple has been scaling back on the required parts for iPhone 5 handsets.

So why all the investor fear-mongling and “sell, sell, sell” mentality? Easy: the scale-back of parts comes from Apple’s admission that iPhone 5 demand has declined. After shipping nearly an estimate 50 million handsets in the last quarter, it’s expected that there would be some decline in the product at some point, especially given its release way back in the mid-part of September, 2012.

JP Morgan analyst Mark Moskowitz offered some assuaging words of comfort to shareholders, saying…

“We believe this news is not new, as we first discussed potential supply chain component cuts in our report on December 19,” … “We believe the news is more noise, and we believe the stock reaction has been overdone,”

So there you have it. There’s no need to worry about Apple, they’re just reacting to market trends is all.

  • Apple observer

    Wake up! This is old news!