Apple shares close low as firm reduces screen orders

Shares in Apple have slumped following news the company is reducing its orders from part suppliers.


Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

Shares in Apple closed lower on the Nasdaq last night (January 14th) as the technology giant reduced its orders from suppliers by around 50 per cent for its latest model.

The Nikkei newspaper in Japan reported that the Californian technology giant has cut its requirement for parts from screen manufacturers for its iPhone 5 model.

It has been suggested that this course of action indicates weakening demand for the new smartphone, which was released in September 2012, while some analysts have revised down their estimates for the number of iPhones sold, which Apple is due to announce in its quarterly annual results next week.

The Guardian reports that APple made a similar move to cut orders for its iPhone 4S in 2011, but that quarter led to the sale of a record-breaking 37 million models.

At close of play in New York last night, shares in Apple fell by 3.5 per cent to $501.75 per unit.

Find out about the Nasdaq and spread betting strategies at City Index.

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar