The Wall Street Journal is reporting that sources have told it that Apple has reduced iPhone 5 component orders. The reduction component orders are reportedly are due to weaker demand for the iPhone 5 than expected. According to the sources, display suppliers for the iPhone 5 have seen orders cut roughly in half.
Sources also indicate that component orders of also been reduced in other portions of supply chain. Reports indicate that Apple notified its suppliers of reduced component orders last month. Some are concerned that a reduction in orders for displays could significantly affect Sharp because the company is already struggling.
There is little demand for the four-inch display that Sharp provides Apple outside the iPhone 5. We are taking this with a big grain of salt, rumors and tips from supply chain are often inaccurate. Apple has also sold significant amount of the handsets with 2 million reportedly sold the first week the device was available in China.