Apple is experiencing lower than expected demand for its iPhone 5 and has cut orders for components as a result, people familiar with the situation have revealed.

The Wall Street Journal reports that Apple's orders for iPhone 5 screens for the January-March quarter have been reduced to approximately half of what had previously been planned. Orders for other components have also been reduced.

Apple is said to have notified suppliers of the order cuts last month.

News of reduced demand for iPhone 5 follows a concerning decline to the firm's smartphone market share, slipping from a 23 per cent high in Q4 2011 to 14.6 per cent in Q3 2012. Main rival Samsung has gone from strength to strength and now holds a worldwide market share of 31.3 per cent.

Apple will report its latest earnings in a few weeks.

Source: WSJ