Apple, Suppliers' Shares Plunge on Poor iPhone 5 Sales

      January 17, 2013 12:47

      Apple shares are plummeting amid lackluster sales of its flagship iPhone 5, leading to falling share prices for suppliers here as well.

      On the NASDAQ on Tuesday, Apple shares closed down 3.15 percent at US$485.90. It has been 11 months since the shares traded below $500.

      The launch of the iPhone 5 initially drove up shares to $702 in September, but as sales fell below expectations, the share price plummeted without significant rebounds.

      Japanese media cited a Japanese supplier for Apple on Tuesday as saying the U.S. tech giant halved its order of displays for the iPhone 5 from 60 million units to 30 million, which accelerated Apple shares' downward spiral.

      The iPhone 5 was popular right after its release in September, but sales stalled due to a lack of innovative functions and problems with the map service.

      Industry sources estimate sales of the iPhone in the fourth quarter at 30 million units, way below the initial target of 50 million. As a result, Apple was unable to narrow the gap with Samsung, which dominated the global market with a 34 percent share in the third quarter last year, when Apple took up only 16 percent.

      Most of Apple's Korean suppliers including LG Innotek and LG Display also saw their shares plunge on Wednesday. Park Hyun at Tongyang Securities said worries over Apple's unsold inventory and a decrease in new orders for the iPhone means partner firms are feeling the pinch as well.

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