A new report from a reputable publication claims that Apple has started slowing down iPhone production because it possibly anticipates low sales this time around as opposed to a year ago.
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The move, claim the sources, is due to sales of the iPhone 6s and iPhone 6s Plus struggling to match expectations after both handsets enjoyed a record-breaking launch.
The decision taken by the company will affect the parts suppliers in South Korea and Japan, including Japan Display, LG Display, Sharp, Sony, Alps Electric, TDK and Kyocera. Once those inventories are depleted, production is expected to return to normal levels in the second quarter. Production lines will likely receive a boost in orders once again later in the year.
Apple shares were down more than 2 percent in pre-market trading.
Through all of these changes, Apple’s new iPhone 7 is also expected to emphasize water-resistant technology, which means a little jaunt through the rain won’t cause your device to go haywire.
Foxconn’s production cuts contrast from previous years, where overtime was offered to meet production needs for clients such as Apple. Apple has turned its attention to the profitable China market, where sales of iPhones have grown 65 percent year-on-year.
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While Apple shares today dropped sharply in the wake of the Nikkei Asian Review report, other sales figures from the recent holiday season remain a bright spot for the company. Apple’s stock, which has fallen 13 percent over the last month, slid further in early trading amid a broad market selloff.
