Shares of Apple (NASDAQ:AAPL) have taken another tumble today, down by about 3%, on news that the company is cutting iPhone screen orders by roughly half of what it had planned for next quarter. In this video, Motley Fool tech and telecom analyst Eric Bleeker makes an important distinction -- namely, that screens are a very different component than other parts.
Apple has had a difficult time with yields on next-generation iPhone screens. That's an incredibly important, because it means Apple could have forecast screens based on past yield rates and cut orders due to their improvement. On the same front, Apple could have overbuilt screens trying to catch up with demand.
Finally, Eric notes that while The Wall Street Journal is a very credible and widely read source, reports of component cuts have been weighing on Apple's shares across the past couple months. This isn't any real news per se, just from a more mainstream source. Today's Apple reports aren't anything shareholders should rejoice, but at the same time they don't spell doom for other component suppliers like Cirrus Logic or Qualcomm, whose Apple parts could be following significantly different demand patterns than screens. To hear Eric's full thoughts, watch the full video below.