Apple shares fall 2% after report says it's warning suppliers about a sharp drop in parts orders

  • The Nikkei reported that Apple was placing less orders as it is taking a "cautious" approach toward upcoming iPhone shipments this year.
  • Apple reportedly expects shipments of 80 million units for the new phones, compared to the 100 million units it had placed orders for last year.

Apple shares fell 2 percent in U.S. premarket trading on Friday, after a report said the firm told its supply chain to make 20 percent fewer parts for iPhones in the second half of 2018.

The Nikkei newspaper, citing unnamed industry sources, reported that Apple was placing less orders as it is taking a "cautious" approach toward upcoming iPhone shipments this year.

The company is reportedly set to launch three new iPhone models in the latter half of 2018, which is when it usually presents new phones.

The Nikkei said that Apple expects shipments of 80 million units for the new phones, compared to the 100 million units it had placed orders for last year.

Apple was not immediately available for comment when contacted by CNBC.

Apple's latest smartphone, the iPhone X, is the first to be equipped with an organic light-emitting diode (OLED) screen. OLED screens make images appear brighter and sharper than the liquid-crystal display (LCD) panels Apple had previously used.

It is also the most expensive phone to have ever been released by the company, with a $999 price tag.

Correction: This article has been updated to reflect that LCD stands for liquid-crystal display.