Japan Display's plant in Nomi, Ishikawa Prefecture is expected to temporarily reduce output by 70 percent to 80 percent compared to the October to December period, the Nikkei reported.
Sharp's dedicated facility for iPhone 5 LCD panels in Mie Prefecture will lower production in January and February by about 40 percent from the October to December quarter, when it was near full capacity, the financial daily said.
Apple has not commented on the report yet.
In the meantime, Apple' s rival Samsung electronics enjoys high sales of its Samsung Galaxy S Series smartphones.
Samsung says its flagship Galaxy S series surpassed the accumulated sales record of 100 million units from the supply side in 2 years and 7 months after its launch in May 2010.
The S. Korean company claims Galaxy S III is selling at much faster rate of 30 million in 5 months and 40 million in 7 months, after becoming a million seller in only 50 days after its release last May. Currently, its average daily sales are 190,000 units.
The driving force behind Samsung's rise to the top of the global smartphone market is Galaxy S II, which is gaining ground as a steady seller hitting the sales of over 40 million in only 20 months.