Investing

Apple Reported to Cut Parts Orders for iPhone

iPhone_5_FrontBack
Source: courtesy of Apple Inc.
A reduction in orders for display screens could mean that sales of the iPhone 5 from Apple Inc. (NASDAQ: AAPL) are not going to meet the heady projections many analysts and investors expect. The company’s orders for iPhone 5 screens have dropped by approximately half, according to two unnamed sources cited by The Wall Street Journal.

This is not just bad news for Apple, but will have a negative impact on all the company’s iPhone parts suppliers. Display makers Sharp Corp., Japan Display Co. and LG Display Co. Ltd. (NYSE: LPL) will take a direct hit, of course. But other component suppliers like Qualcomm Corp. (NASDAQ: QCOM), Broadcom Corp. (NASDAQ: BRCM), Skyworks Solutions Inc. (NASDAQ: SWKS), Cirrus Logic Inc. (NASDAQ: CRUS), TriQuint Semiconductor Inc. (NASDAQ: TQNT) and Avago Technologies Ltd. (NASDAQ: AVGO) could get steamrolled as well.

According to the WSJ, Apple notified suppliers of the order cuts last month.

Apple’s shares are down about 3.9% in premarket trading this morning, at $500.00 in a 52-week range of $418.66 to $705.07. The weight of an Apple share slide on the Nasdaq Composite will be substantial today. Cirrus Logic’s shares are down 4.5%, Qualcomm is down 1.3% and Avago is down 4.8%. Skyworks and TriQuint are inactive. The Nasdaq Composite futures is down 0.4%.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.