But inventories of the two models launched last September have piled up at retailers in markets ranging from China and Japan to Europe and the USA amid lackluster sales.
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The report prompted a 2.5% drop in Apple shares, which have lost about a quarter of their value from record highs in April, reflecting concern over slowing shipments. Its shares fell more than 2 percent Wednesday and were trading just above $100.
Experts believe that this indication of a cutback in production may be a sign of dwindling demand for Apple’s iPhones. Production was expected to return to normal in the April-June quarter, the Nikkei reported.
The iPhone 7 Plus could have 12.5 per cent extra battery capacity, according to a report from Chinese website MyDrivers. Apple drives 75% of Dialog’s revenue, and the company reduced Q4 guidance from $430 million (£286 million)-$460 (£306 million) to $390 million (£259 million)-$400 million (£260 million).
The article, mostly devoid of sources, follows a flurry of reports in December from the Street that saw estimate cuts in iPhone numbers.
Toward the end of past year, many analysts began predicting that sales of Apple’s best-selling product would slump in 2016, based on supply chain issues and weaker demand especially from saturated, developed markets.
Apple declined to discuss sales forecasts or any related layoffs with the Journal, but a Foxconn statement claimed that: “The incentives were provided to Foxconn in recognition of our company’s contributions to maintaining our significant work force at our Zhengzhou facility throughout the year”. The news also set off worries about Apple’s wide supplier network, with companies such as Japan Display, Sharp, LG Display, Sony, TDK, Alps Electric, and Kyocera all certain to be impacted by a cut in iPhone production.
However, Patrick Moorhead, an analyst at Moor Insights & Strategy, said he was a bit skeptical about the negative outlook for Apple. It still seems odd to me that a 64GB isn’t available; because of this, I’d rather see Apple offer the “iPhone 7 Plus” in 64GB, 128GB, and 256GB.
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Normally, Apple is expected, for financial 2016, to grow sales by a far cry from the 28% sales growth it achieved, under 4%.
