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Apple Cuts January-March Component Orders for iPhone 5 - Sources

Apple Inc. (AAPL) has cut its component orders for the iPhone 5 due to weaker- than-expected demand, people familiar with the situation said Monday.

Apple's orders for screens for the January-March quarter, for example, have dropped to roughly half of what it had previously planned to order, two of the people said. The U.S. company has also cut orders for components other than screens, according to one of the people.

Apple notified the suppliers of the order cut last month, they said.

The move comes at a time when Apple faces greater competition from South Korea's Samsung Electronics Co. (SSNHY, 005930.SE) and other makers of smartphones powered by Google Inc.'s (GOOG) Android mobile operating system.

Apple released the iPhone 5 in September. The latest model comes with a longer, 4-inch screen compared with the 3.5-inch screens used in all previous iPhone models.

Apple representatives weren't immediately available for comment.

Japan's Nikkei reported earlier Monday that Apple has slashed its orders for iPhone 5 components.

Write to Juro Osawa at [e-mail]


(END) Dow Jones Newswires
01-13-13 2041ET
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