Apple to Cut iPhone Production By 10% in Q1 2017 [Report]

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Posted December 30, 2016 at 9:02pm by iClarified

Apple is cutting iPhone production by 10% in the first quarter of next year due to sales that are more sluggish then expected, reports Nikkei.

This comes after the company slashed output in January-March 2016 due to accumulated inventory of the iPhone 6s line at the end of 2015. That experience led Apple to curb production of the iPhone 7, introduced in September, by around 20%. But the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter.

Nikkei says the larger iPhone 7 Plus is still popular but a shortage of camera sensors has prevented Apple from meeting demand. Demand in Japan for the iPhone 7 is strong; however, the country accounts for only about 10% of the market.

Japanese component producers will again feel pain from the coming cuts. But orders from Chinese smartphone makers, as well as growing demand for automobile technology linked to automated driving, will soften the blow.

Despite the negative reports, Apple still dominated the holiday season, activating over double the number of smartphones that Samsung did.

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Apple to Cut iPhone Production By 10% in Q1 2017 [Report]

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Paklan - January 3, 2017 at 7:26am

iPhone SE sales is much better due to availability on the basic stuffs.

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skylander - January 1, 2017 at 4:46am

I think it is normal to cut it after boosting the production for holiday.

matrixmaniac - January 1, 2017 at 4:08am

add a headphone jack, remove the dongle and provide ear pods with a standard plug and I'll buy one....

Great! - December 31, 2016 at 11:16pm

Yes, there's no way that this adjustment is a normal occurrence every year. He couldn't have boosted production for this quarter and then cut next quarter after the surge across the holiday season. Yes there's no way that makes sense to ensure smooth flow of the product. Everyone else is a supply chain expert except Cook.