Apple iPhone Suppliers See No Order Cuts

Apple's (AAPL Quote) Taiwanese suppliers say there have been no order cuts related to the iPhone.

Citing sources at Taiwan-based component makers, a report Thursday in Taipei's Digitimes says that "iPhone shipments schedules are still on track."

The report seems to refute rumors that circulated earlier this week that iPhone production had been cut in half. Apple shares fell sharply on Tuesday as the speculative chatter spread through the market.

Taiwan-based companies are the source of most of the chips and components that go into the iPhone, says one industry observer, who calls Digitimes a very credible source for news in that market.

Though sales of the iPhone started about a month ago, speculation about its popularity has been going strong for months. The rumors Tuesday fanned suspicion that demand for the pricey gadget was limited. But fans took the rumor as ongoing speculation that production may be shifting to new versions of the iPhone.

The iPhone is being sold through telco AT&T (T Quote). Earlier this week, rival Verizon's (VZ Quote) Verizon Wireless said it had experienced a brief dip in user growth due to the iPhone rollout, though Verizon said it has since recovered to resume its fast-growth pace.

Apple shares were up 18 cents to $135.18 in midday trading Thursday.