Apple is cutting iPhone production by 10% in the first quarter of next year due to sales that are more sluggish then expected, reports Nikkei.
This comes after the company slashed output in January-March 2016 due to accumulated inventory of the iPhone 6s line at the end of 2015. That experience led Apple to curb production of the iPhone 7, introduced in September, by around 20%. But the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter.
Nikkei says the larger iPhone 7 Plus is still popular but a shortage of camera sensors has prevented Apple from meeting demand. Demand in Japan for the iPhone 7 is strong; however, the country accounts for only about 10% of the market.
Japanese component producers will again feel pain from the coming cuts. But orders from Chinese smartphone makers, as well as growing demand for automobile technology linked to automated driving, will soften the blow.
Despite the negative reports, Apple still dominated the holiday season, activating over double the number of smartphones that Samsung did.
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This comes after the company slashed output in January-March 2016 due to accumulated inventory of the iPhone 6s line at the end of 2015. That experience led Apple to curb production of the iPhone 7, introduced in September, by around 20%. But the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter.
Nikkei says the larger iPhone 7 Plus is still popular but a shortage of camera sensors has prevented Apple from meeting demand. Demand in Japan for the iPhone 7 is strong; however, the country accounts for only about 10% of the market.
Japanese component producers will again feel pain from the coming cuts. But orders from Chinese smartphone makers, as well as growing demand for automobile technology linked to automated driving, will soften the blow.
Despite the negative reports, Apple still dominated the holiday season, activating over double the number of smartphones that Samsung did.
Please follow iClarified on Twitter, Facebook, or RSS for updates.
Read More