The Wall Street Journal originally reported the supply order decline and say that iPhone 5 screens, for example, have dropped to roughly half of what the company had previously planned to order. The Cupertino, Calif., company has also cut orders for components other than screens, according to several people.
What happened? The iPhone 5 is definitely not a bad phone; it is quite good. However, Apple just isn't ahead of the curve like they used to be. It happens to every company -- Sony, Microsoft, RIM, etc. But it is still way too early to count Apple out. Apple plans to come out with the iPhone 5S this spring and then a completely redesigned iPhone 6 in September.