Apple shares fell after a report that the Cupertino company had cut orders for iPhone components because of poorer-than-expected sales.
Apple slid 2.7 per cent in New York after the Nikkei newswire reported that the company had scaled back production plans for the iPhone because of the shortfall.
Apple, recently over $700, lost 2.7 per cent to $506.21. The company reduced its original target to order 65 million iPhone 5 displays this quarter by about half, Nikkei said.
The newswire quoted an unidentified senior executive at a component maker it didn’t name.
James Cordwell, an analyst at Atlantic Equities Service in London told Bloomberg iPhone sales were slowing because smartphones have saturated developed markets, where Apple is strongest.
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I suspect sales have slumped because the IPhone5 doesn't offer enough additional benefit to justify being FORCED to buy new cradles, chargers and docking stations to fit the new 'Lightning' connector. #Owngoalapple
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Yeah the iPhone 5 was not as good as people wanted so not a great deal of surprise there. Also there are rumours that the iPhone 5s will be released in June. Every time people think a newer model is coming out, they don't buy the current model.
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