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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (148168)	1/14/2013 8:10:04 AM
From: slacker711	5 Recommendations Read Replies (2) \| Respond to of 213182

LCD-panel makers cut output for iPhone 5: report marketwatch.com By MarketWatch TOKYO--Japan Display Inc. and Sharp Corp. (6753.TO, SHCAY) have started reducing production of smartphone liquid-crystal-display panels for Apple Inc. AAPL -3.58% amid slower-than-anticipated global sales of the iPhone 5., the Nikkei reports in its Jan. 14 edition. Japan Display, Sharp and South Korean concern LG Display Co. (034220.SE, LPL) supply LCD panels for the iPhone 5, which made its debut last September. Apple had planned to order from the trio enough panels for a total of 65 million units this quarter. But now, the U.S. company is believed to have notified them about roughly halving that figure. Japan Display, which operates six plants in Japan, is expected to feel the biggest impact. A plant in Nomi, Ishikawa Prefecture--a dedicated facility in which Apple invested heavily and that began operating last June--is expected to temporarily reduce output by 70% to 80% compared with the October-December term. Another Ishikawa plant that handles output for the iPhone 5 will shift to production for other clients, but the transition could take a few months. Apple's cutbacks could deal Japan Display's sales a direct blow for the time being. Sharp's Kameyama No. 1 plant in Mie Prefecture, a dedicated facility for iPhone 5 LCD panels, will slash output in January and February by around 40% from the October-December quarter, when it was near full capacity. The Kameyama No. 2 plant, whose customers for small and midsize panels extend beyond Apple, will cultivate demand for use in notebook computers to help pick up the slack. Seiko Epson Corp. (6724.TO, SEKEY), Murata Manufacturing Co. (6981.TO) and TDK Corp. (6762.TO, TTDKY) manufacture electronic parts for the iPhone 5. "Since this month, iPhone-related orders have shrunken by half," a senior executive at a parts maker says.

To: slacker711 who wrote (148168)	1/14/2013 8:11:07 AM
From: Moonray	Respond to of 213182

Delete, Dup

To: slacker711 who wrote (148168)	1/14/2013 8:12:14 AM
From: Moonray	1 Recommendation Respond to of 213182

The only positive is that iPhone weakness in the March quarter should be well and truly discounted. Apple Shares Drop After Report About Cuts in IPhone Orders Amy Thomson, Bloomberg News - 4:29 am, Monday, January 14, 2013 Jan. 14 (Bloomberg) -- Apple Inc. shares declined after the Nikkei newswire reported that the company scaled back production plans for the iPhone because sales have trailed expectations. The stock fell as much as 4.5 percent to $497 in early U.S. trading. It dropped to $520.30 at the close in New York on Jan. 11 and has lost 26 percent from a September record. Apple, based in Cupertino, California, reduced its original target to order 65 million iPhone 5 displays this quarter by about half, Nikkei said, citing an unidentified senior executive at a component maker it didn’t name. IPhone sales are slowing because smartphones have saturated developed markets, where Apple is strongest, said James Cordwell, an analyst at Atlantic Equities Service in London. “We’re getting close to saturation,” said Cordwell, who rates Apple shares “overweight” and doesn’t own any. “The real growth is going to come from emerging markets, and Apple’s share in emerging markets is much lower than it is in other markets at the moment due to such high prices.” Bethan Lloyd, a spokeswoman for Apple in the U.K., didn’t immediately return calls seeking comment. Android Rivalry The iPhone is facing increasing competition from manufacturers using Google Inc.’s Android software, including Samsung Electronics Co. Android phones are gaining users in emerging markets because they are cheaper than the iPhone. In emerging markets, there is also more room for smartphone sales to increase because the devices are gaining market share from more-basic handsets. In developed markets, about 75 percent of handsets sold already are smartphones, Cordwell said. First-quarter iPhone shipments may decline 25 percent from the previous period, Peter Yu, an analyst at BNP Paribas, said today in a note. Analysts’ average second-quarter revenue estimate for Apple may drop by about $4 billion to $5 billion and the earnings-per-share projection may decline by $1 to $1.50, Abhey Lamba, an analyst at Mizuho Securities USA, said in a report. --Editors: Ville Heiskanen, Robert Valpuesta To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net o~~~ O

To: slacker711 who wrote (148168)	1/16/2013 3:40:23 AM
From: JP Sullivan	1 Recommendation Read Replies (1) \| Respond to of 213182

cut in half from 65 million That's an awfully high number. Did Apple really think it could sell 65 million iPhones in one quarter, even with CHL on board? According to Brian White of Topeka (reported on Bloomberg), Apple could have over ordered the new screens in view of poor yields at the time, and as that issue has been sorted out, it has accordingly reduced the orders. Presumably, there were several suppliers of the screen and it would have made sense to order extra from everyone in case one or two suppliers fell short.