The U.S. company had initially told parts makers to keep production of the iPhone 6s and 6s Plus for the quarter at the same level as with their predecessors -- the iPhone 6 and 6 Plus -- a year earlier. 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 U.S. amid lackluster sales. Customers saw little improvement in performance over the previous generation, while dollar appreciation led to sharp price hikes in emerging markets.
The report says that production is expected to return to normal levels in the April to June quarter after the inventory adjustment is complete.
The production slow down is said to affect manufacturers including Japan Display, Sharp, LG Display, Sony, TDK, Apls Electric and Kyocera. Yasuo Nakane, a senior analyst at Mizuho Securities, says companies need to prepare for a possible year-on-year decline in iPhone shipments.
Notably, an earlier report claimed that shipments of the iPhone 6s and iPhone 6s Plus from productions lines in Q4 were reportedly 5-10% lower than originally expected.
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