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Apple scaling back iPhone 6s production

Apple scaling back iPhone 6s production

Apple is set to scale back production of the iPhone 6s and iPhone 6s Plus, with suppliers claiming that stock is piling up as demand for the handsets slows.

It’s believed Apple will cut production by 30% until March, hitting parts manufacturers in China, Japan and South Korea. The company is said to be planning to return to normal output in the next quarter.

The reductions in output are purportedly due to sales of the iPhone 6s and iPhone 6s Plus struggling to match expectations, after both handsets enjoyed a record–breaking launch. 13 million units were sold during their first weekend on sale.

If true, it will temper Apple’s optimism about the iPhone 6s and iPhone 6s Plus becoming its best selling phones.

The tech giant is due to report quarterly results for September to December 2015 in the coming weeks, at which point it will presumably also offer some explanation for declining demand for the current-gen iPhones.

One theory behind the slide in sales is Apple's decision to release the latest iPhones in China at the same time as the US and Europe.

That meant that unlike previous iterations which went on sale in China some time after, this year's phones did not benefit from a second wind of consumer demand.

Higher prices for the iPhone 6s and 6s Plus in developing markets are also thought to have been a factor.

Apple is set to launch a new budget iPhone, the much rumoured iPhone 6c, in spring, with a new flagship model due later this year.

Source:

Nikkei

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