Apple / Hi-P

Apple / Hi-P: Apple declined to the lowest price in 11 months, falling 3.6% to US$501.75, after the Nikkei newswire reported that production of the iPhone was cut on weak demand. Apple ordered about half the 65m iPhone 5 displays it originally targeted for this quarter, Nikkei said, citing an unnamed executive at a component maker. Manufacturing curbs have been widely known since Dec, according to analysts at UBS and JPM. UBS said last month, Apple cut production by about 30%, which may be the result of inventory rebalancing or lower consumer demand. JPM noted however, order cuts may also be due to suppliers becoming more adept at building the latest iPhone, reducing the need for Apple to order excess parts. Among Apple suppliers in Asia, representatives from Sharp, Japan Display and Hon Hai Precision declined to comment. Hi-P, which counts Apple amongst its top two customers, is -2.7% at $0.735. Earlier this month, Hi-P announced that it had decided to halve its expansion plan, and pace out its high-stake bet in building up a new plant in Nantong, China, citing challenging business conditions and environment. CIMB (Underperform, TP $0.74) and DMG responded then, that they continue to have a negative on the company’s outlook.