There does appear to be some truth to these claims considering that Foxconn, Apple’s primarily iPhone manufacturer, has received a $12 million grant from the Chinese government to minimize layoffs at its massive facilities. Foxconn had already begun cutting jobs in the region when those funds became available, according to the Journal. The company will cut production of the latest iPhone 6s and 6s Plus models by 30 percent during the first three months of 2016, according to Nikkei Asian Review report.
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The iPhone 6s and 6s Plus were launched in September past year, with Apple reporting sales of over thirteen million units within 3 days of availability, boosted by the smartphone going on sale in China at launch for the first time. As such, Apple will scale back the production of the two iPhones in the January-March 2016 quarter to enable the dealers to finish off with their existing stock.
“I don’t see any competitive issues as Apple is gaining or maintaining market share and the macro-economic conditions haven’t significantly changed, either”, Moorhead told us. ‘This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gates, ‘ FBR Capital Markets analyst, Daniel Ives said. That, however, doesn’t mean that Apple’s products have lost their appeal; analysts still stand by brand as a no-brainer long-term investment.
Apple’s cash cow over the past few years has been the iPhone, that’s no secret, so a decline in sales would reflect prominently on the company’s balance sheet. The company’s shares are down 13 percent over the last month.
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Citing a source with “knowledge of the company’s plans”, Fast Company says the iPhone 7 will not include a headphone jack in an effort to make the device even thinner than the iPhone 6s.
