Apple Expected to Cut iPhone 6s Shipments by 30% in Q1 2016
Apple is expected to cut around 30 per cent orders of the iPhone 6s and iPhone 6s Plus to its suppliers in the first quarter of 2016, reports Japanese business newspaper Nikkei.
The report claims that the inventory of the iPhone 6s duo has “piled up at retailers” amid lackluster sales since their launch back in September. As a result, managers at Cupertino are scaling back productions for the January-to-March quarter. Production is expected to resume at full capacity in the April-June quarter, once the inventory is adjusted in stores around the world.
Wall Street analysts have already warned that Apple would struggle to grow demand of its flagship product, that could actually decline iPhone sales year over year in the coming fiscal quarters. 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.
According to the report, suppliers likely to suffer from a drop in shipments include liquid crystal display panel manufacturers Japan Display, Sharp and LG Display, as well as image sensor supplier Sony and electronic parts makers TDK, Alps Electric and Kyocera.
“Businesses need to prepare for a potential year-on-year decline in iPhone output for 2016 as a whole,” said Yasuo Nakane, a senior analyst at Mizuho Securities.