As iPhone demand wanes, Apple has plan B, but suppliers don't

In a world where iPhone demand is on the wane, Apple Inc. has a Plan B. As customers wait longer between upgrades and the smartphone market saturates, Apple can fall back on charging higher prices for each handset and raking in more money from services such as streaming music, digital videos and data storage.

But there’s no back-up for many of the companies that supply components for the iPhone.

The latest evidence that what’s bad for Apple can be terrible for suppliers came on two continents within hours of each other. Japan Display Inc., which gets more than half its