Apple has told iPhone suppliers in China to cut iPhone 5c orders for the fourth quarter following lower than expected demand for the device, The Wall Street Journal reports. Foxconn has been asked to cut orders by one-third, while Pegatron will reduce its shipments by 20%, sources claim.
Apple’s quarterly profit probably fell for the first time in over a decade, thanks to new products with lower profit margins and a slowing demand for the iPhone, Bloomberg reports. Fourteen analysts have reduced their estimates for Apple in recent weeks, and on Friday, the Cupertino company’s share price fell below $400 for the first time since December 2011.
Apple’s hard-to-meet high standards and its low price expectations have earned it the nickname “Poison Apple” with Asian suppliers, who say they are feeling the affects of decreasing demand of the iPhone. Several have told Reuters that they are trying to reduce their reliance on Apple amid increasing competition from companies like Samsung.
Apple has reportedly stopped placing Mac component orders after overestimating demand and placing “aggressive” orders at the end of 2012. DigiTimes reports that suppliers haven’t received any information from the Cupertino company to indicate when orders may resume.