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.
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Shares of Apple (NASDAQ: AAPL) dipped in pre-market trading Wednesday morning following multiple reports that the company has decreased orders of the iPhone during the past few months. Foxconn had already begun cutting jobs in the region when those funds became available, according to the Journal. For that reason, the firm reportedly plans to cut production of its iPhone 6s and 6s Plus by around 30 percent during the first quarter of 2016.
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.
High iPhone stock levels are prompting Apple to cut production of the 6s and 6s Plus by 30 percent between January and March, according to the news site.
It’s a move that’s seen by analysts as a signal of slowing demand for Apple’s latest devices – the iPhone 6S and the 6S Plus. 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.
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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 report comes amid predictions from some market analysts that the company will announce its first ever fall in iPhone sales at the end of the month.
