Apple shares take a tumble as company cuts back iPhone orders
Apple shares fell after a report that the Cupertino company had cut orders for iPhone components because of poorer-than-expected sales.
IPhone 5 sales slip
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.