If last week had a theme in Apple news, it was “iDevice order cuts” supposedly to do with “weak demand“. And, this Monday morning there’s another report to add to the mix. According to Sankei Biz (via TechCrunch), Apple has also contacted Sharp asking it to cut iPhone 5 LCD panels in half. Apple is keeping quiet, as it has done throughout this last week or so.
While many are suspecting that iPhone and iPad demand is waning, it’s important to recognize the possibility of another reason for this cut: improved production. When the iPhone 5 and latest iPads launched, there were some major issues with production that meant Apple couldn’t keep up with demand. The company, to compensate put in a huge order for Q1 of 2013, expecting to still be needing to catch up. However, it’s likely that production yields improved considerably over December, and now Apple has too many display panels, enough to cut the originally sky-high order in half.