Apple dramatically cut its component orders for the first quarter of 2013, according to various reports, and this seems to be the biggest reason the stock is tanking today.
Jefferies analyst Peter Misek says iPhone orders were dropped to 25-30 million for the March quarter, down from the 35-40 million range, according to Forbes.
UBS analyst Steven Milunovich said the same thing this morning, "supply chain checks indicate the iPhone build rate is falling to 25mn units for the Mar quarter (we model 40mn total iPhone shipments)."
And last week, DigiTimes reported there was going to be a 20% drop on a quarter over quarter basis in demand for iPhone parts from manufacturers.
Misek is saying that Apple is cutting its component orders because it over-ordered for this quarter. That's not good, if true. It means Apple's iPhone sales aren't going to be as strong as it thought this quarter.
