As inventories of the iPhone 6s and 6s Plus had piled up at retailers in markets ranging from China and Japan to Europe and the United States, production would be scaled back to let dealers go through their current stock, Nikkei reported.
Advertisement
Similarly, Apple’s financial results for the fourth quarter of 2015, released at the end of October, indicate that the iPhone juggernaut continues to enjoy considerable momentum.
Shares in Apple slipped 0.45% in after-hours trading in the USA to $102.25, after losing 2.51% to $102.71 during the regular session, while in London on Wednesday morning, chip supplier ARM was down more than 3% to 973p.
“This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gate”, said Daniel Ives, senior analyst at FBR Capital Markets.
Apple and Foxconn did not immediately respond to requests for comment. What’s more, the provincial government is giving the company formally known as Hon Hai more than $12 million in subsidies to limit any layoffs.
Once the inventory adjustment is complete, production should return to normal in the April-June quarter, Nikkei said.
Those claims have just been strengthened by a Wall Street Journal report that claims Apple is cutting its iPhone orders for 2016.
According to the report, suppliers likely to suffer from a drop in shipments include liquid crystal display panel manufacturers Japan Display, Sharp and LG Display, as well as image sensor supplier Sony and electronic parts makers TDK, Alps Electric and Kyocera.
In recent weeks, Wall Street analysts have also tempered their views on the high-flying stock.
“Apple has been gaining significant market share in pretty much every region, and I’m not seeing a global slowdown”, Moorhead told Reuters.
Normally, Apple is expected, for financial 2016, to grow sales by a far cry from the 28% sales growth it achieved, under 4%.
Advertisement
Reports from Apple’s Chinese supply line claim that the company is scaling back production orders for the iPhone 6S and iPhone 6S Plus.
