Photo: Apple via Bloomberg
The Wall Street Journal sent shockwaves through the Apple world when it said Apple cut its order of iPhone screens in half because of weak demand.Shaw Wu at Sterne Agee says weak demand is not a problem for Apple. In a new note he says, “As far as we can tell, iPhone 5 demand remains robust.”
He explains the cuts in orders as such: “(1) much improved yields meaning lower component builds and (2) supplier shifts.”
So it sounds like Apple put in a gigantic order for iPhone screens assuming they would be hard to make. When they weren’t that hard to make, Apple cut back on the order. It also may be shifting its suppliers and thus one supplier may be getting cut and blabbing to the press.
In just over a week we hear from Apple during its earnings call. We’ll get some answers then.
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