iPhone 5 LCD order notcut over weak demand:Analyst

Though Apple has reportedly cut order for
iPhone 5 LCD panel over weak demand,
Sterne Agee analyst Shaw Wu believes
otherwise.


NEW DELHI: Apple has reportedly
cut the order for iPhone 5 LCD panel
over weak demand. However, Sterne
Agee analyst Shaw Wu says higher
efficiency was the reason behind this
reduction in LCD screens for iPhone
5.
Wu said in a research note that

demand for Apple iPhone 5 remains
robust in the market. He says the
reason behind the cut in order is due
to "(1) much improved yields
meaning lower component builds and
(2) supplier shifts." This means that
Apple placed an order of screens for
iPhone 5 keeping in mind low yields,
but recently revised that figure
taking into account the increase in
number of ready-to-ship units.
This would mean that the number of
screens being manufactured for
iPhone 5 has indeed been reduced,
but this has no bearing on the
demand for the smartphone in the
market.
Coming to the second possible factor,
a change in supplier would also mean
that one of the suppliers of iPhone 5
display panel leaked that the order
has been cut, without an actual
decrease in demand for the device.
Earlier this week, Wall Street Journal
reported that Apple has reduced the
order for LCD screens for iPhone 5
owing to a decrease in demand for
the phone. It said that Apple has cut
the initial order of 65 million display
units for iPhone (for Q1 2013) by
50%. This led to a decline in stocks of
Apple as well as its display suppliers
like Sharp.