As inventories of the iPhone 6s and 6s Plus have piled up since they were launched last September, production will be scaled back to let dealers go through their current stock, the business daily reported.
The report prompted a 2.5% drop in Apple shares, which have lost about a quarter of their value from record highs in April, reflecting worries over slowing shipments. Shares in the mainly Asian makers of the iPhones' screens and chips were also sharply lower on Wednesday.
"This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gates," FBR Capital Markets analyst Daniel Ives said. "The Street was bracing for a cut but the magnitude here is a bit more worrisome."
Among LCD panel makers, Japan Display Inc fell 4.7pct while LG Display Co Ltd fell 3.4%.
Hon Hai Precision Industry was down 1.8% to trade around T$77.80, lows not seen in over four months. HonHai, which goes by the trade name of Foxconn, is a major assembler of Apple's iPhones.
TSMC, the world's largest chipmaker and which has supplied some of the chips used in Apple iPhones, was off about 1.1% to T$136.50, levels not seen since mid-November.
Another Taiwanese assembler, Pegatron Corp, was off about 4% to trade around T$69.00, lows not seen in a year.
Other suppliers such as Japan's Murata Manufacturing Co Ltd, Alps Electric Co Ltd and TDK Corp fell by 3 or 4%.
Production is expected to return to normal in the April-Junequarter, the Nikkei reported.
However, Patrick Moorhead, an analyst at Moor Insights & Strategy, said he was a bit skeptical about the production cut reports.
